Time Rounding Not Permitted under FLSA

A medical healthcare system in Cleveland must face charges of underpayment of employees because its timekeeping system illegally rounded their starting times up and finishing times down to their assigned hours, despite their having actually worked during those extra – albeit brief – periods of time; it also adversely affected overtime for which they should have been compensated.

Conversely, early clock-outs resulted in deduction of pay. The trial judge agreed that the system was “rigged” against the employees and allowed the lawsuit to proceed.