MACNY - Docking Time for Late Arrival?

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Docking Time for Late Arrival?

Question: One of our employees has reported 3 to 4 minutes late twice this week. His supervisor wants to discipline him by docking 15 minutes from his pay each time he was late. Is there a problem with this?

Answer: MACNY staff has received quite a few calls over the past several weeks on pay-docking and recording issues. The Fair Labor Standards Act (FLSA) requires that employees be paid for all time worked, however small. FLSA also states employer’s can round to the nearest five minutes, tenth of an hour, or quarter hour to the nearest five minutes in recording time worked.
Many employers round their time cards or time sheets to the nearest quarter of an hour, using the “7-8 minutes rule”. The one condition is that any rounding practice must be a system that, over a period of time, employees are fully compensated for all time actually worked. The U.S. Department of Labor will accept a rounding practice which rounds to the closet quarter hour, tenth of an hour, or five minutes, if it does not result, over a period of time, in failing to average out so that employees are paid for all time they have actually worked. Employers cannot use rounding to ignore the few minutes at the end or beginning of the shift. Rounding must be used at both ends of the shift each day. It cannot be used selectively to avoid paying for the extra few minutes the employee records before the shift begins or after the shift ends.

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