Timekeeping failures create costly risks beyond payroll. A federal probe uncovered widespread overtime violations by a construction contractor, forcing the employer to pay nearly $600,000 in back wages and damages. Flawed time rounding and incomplete recordkeeping caused it.
This case warns HR that wage and hour compliance is a fundamental risk embedded in everyday business tasks.
Time rounding often gets ignored, but it directly affects your systems, managers and employee pay. When these aren’t aligned, it can get expensive.
A federal investigation revealed systemic overtime violations tied to time rounding by a construction contractor in Florida.
The DOL found the contractor’s rounding consistently cut recorded hours, causing unpaid overtime.
Investigators also discovered the contractor failed to maintain complete and accurate records of workers’ wages and hours.
The result: The contractor had to pay $594,313 in back wages and damages to 419 workers.
Understanding the legal framework around time rounding is critical for HR leaders managing compliance. While rounding can be a legitimate payroll practice, it has precise boundaries.
The Wage and Hour Division emphasizes that time rounding must be fair and balanced, not skewed to the employer’s advantage.
“Some employers use a pay method referred to as rounding to produce even and balanced calculations of hours worked,” Orlando...
USCellular urged the U.S. Supreme Court Wednesday to uphold a D.C. Circuit ruling that dismissed whistleblowers’ False Claims Act (FCA) claims alleging spectrum auction fraud, branding their reque...