Certified Payroll Professional Practice Exam

What is considered an acceptable time rounding practice for employee working hours under the FLSA?

1. Half-hour rounding

2. Exact minute calculation

3. Nearest dollar rounding

4. Nearest quarter-hour rounding

The correct answer is: Nearest quarter-hour rounding

The acceptable time rounding practice for employee working hours under the FLSA is rounding to the nearest quarter-hour. This means that if an employee works any time between 1 and 7 minutes, it is rounded down to 0, between 8 and 22 minutes it is rounded to 0.25, between 23 and 37 minutes it is rounded to 0.5, and between 38 and 52 minutes it is rounded to 0.75. The other options, such as exact minute calculation or half-hour rounding, are not considered acceptable because they do not accurately reflect the actual time worked and could result in employees being underpaid or overpaid. Nearest dollar rounding, on the other hand, is not applicable to tracking working hours and may not accurately reflect the time worked. Therefore, the correct and most acceptable option is nearest quarter-hour rounding.