According to the Fisher Philips law firm’s recommendation, employers should end the rounding time practice and modify their payment practices to:       

1. Compensate employees for the exact time they have worked.
2. If you would like to continue using a rounding system, consider adopting a system that always rounds up in favor of the employees.

These modifications should not significantly impact either the employee or the company.

Implementing these changes can reduce thelikelihood of wage disputes, including potential class actions, which can be very costly.

Any alterations to payroll practices must be communicated to employees in advance.

You can review the following cases in which the rounding system had a counter-productive effect below:

• Houston v. St. Luke’s Health System, Inc.
• Eisele v. Home Depot U.S.A., Inc.

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