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The law requires that employers pay their workers for every hour they're on the job but it allows employers to use a certain amount of rounding when calculating the total amount of time worked. The “7-minute rule” applies in many rounding situations.
Some employers track employee hours worked in 15 minute increments, and the FLEA allows an employer to round employee time to the nearest quarter-hour. However, an employer may violate the FLEA minimum wage and overtime pay requirements if the employer always rounds down.
The rules for time-rounding, according to the FLEA, are simple: Employee time from 1 to 7 minutes may be rounded down, and thus not counted as hours worked, but employee time from 8 to 14 minutes must be rounded up and counted as a quarter-hour of work time.
According to the Department of Labor (DOL), timesheet rounding is legal, as long as it's done correctly. When it comes to rounding, there are three rules employers must follow to ensure compliance. Timesheet rounding can't favor employers. The policy must either be completely neutral or favor employees.
Quarter hour rounding (15 minutes): This is sometimes called the 7/8 rule. The 15 minutes is split, so it is 7 ½ minutes before the quarter-hour to 7 Â1⁄2 minutes after the quarter-hour and all the punches are on 15 minute increments. If they punch in at 8:03 then it is rounded to 8:05.
Minus 7 minutes is the accumulative time allowed. Meaning you could be 2 minutes late to start, go over lunch by 2 minutes, then still clock out 3 minutes early. If you exceed 7 minutes total, you will not meet your scheduled hours for the day and could get dinged.
Yes, your paid time starts when you clock in. Since the time clocks allow you to clock in 5 minutes before the start of your scheduled shift, that's when your paid time would start. Clocking in 5 minutes early doesn't flag on the attendance report as an early in, so you shouldn't get written up for it.
Disregarding time. When an employee punches in early for a shift or punches out late at the end of the day, the FLEA does allow you to disregard the additional time outside the normal shift if the employee does not actually perform any work.
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