Get a Complimentary Workforce Realignment Feedback Session

What is your 30-day workforce management plan?

As you start to plan for the weeks and months ahead, we would like to help by offering a complimentary Workforce Realignment Feedback Session with our HCM Analytics team.

During this session, our HCM Analytics team will:

  • Discuss your current plans for workforce changes to manage the next 30 to 90 days and provide feedback on potential risks and opportunities
  • Identify targeted areas where you could potentially reduce your labor costs while minimizing long-term damage
  • Suggest key metrics for you to track so you can forecast labor costs better and make earlier interventions

Request your complimentary Workforce Realignment Feedback Session with our HCM Analytics Team.

Please enter a valid email address

Time Rounding is a practice that doesn’t add up for employers.

time roundingAlthough the FLSA permits you to round your employees’ time to the nearest quarter hour, that doesn’t mean it’s a good idea.

If your company is rounding time, why do you do it? Do you think it’s more convenient? Or is it because that’s how you’ve always done it, and changing now would be a pain? Well, here are a few facts for you to consider regarding the downside of rounding:

Rounding puts you at greater compliance risk

According to the FLSA, when rounding is based on 15-minute increments, employee time from 1-7 minutes may be rounded down, but time from 8-14 minutes must be rounded up. In recent years, employers’ rounding practices have become a frequent basis of labor lawsuits, including class action suits. Why incur the extra headaches and risk?


Rounding may result in greater overtime costs

If rounding up causes an employee to cross into overtime hours, employers are required to pay the employee’s overtime rate. So rounding can result in expensive, unintended consequences.

Rounding doesn’t serve any purpose

Rounding is a labor practice that dates back to when employees had to wait in line to be manually clocked in by clerks. It made sense back then. But with automated time and labor management systems easily capturing exact clock-in times, there’s no need for it now.

Accuracy saves employers money

Accuracy is a key tool in lowering administrative and payroll costs. It allows employers to pinpoint workforce trends, identify potential compliance issues quickly, and even serve customers better. It ensures employers only pay for actual hours worked, and all companies benefit from running a tight ship.

Anecdotally, when companies implement automated time-tracking systems, one of the first places they see dramatic savings is via the switch from rounding to precise time-punches.

Why pay a penny more than you owe?

For information about HCM, read about our human capital management information system.

More Resources

HR Statistics

Attendance Tracking Software

Mobile Time Clock