In Schneider v. Union Hospital, Inc., two former employees brought a combined collective and class action against their employer claiming that its policy for rounding employees’ time violated the Fair Labor Standards Act (FLSA). The District Court for the Southern District of Indiana certified the combined class and collective action of over 1,800 hourly employees who were not paid overtime due to the rounding policy.
Union Hospital rounded employee time in one-tenth of an hour increments twice a day, once at the beginning of the shift and once at the end. The hospital argued that rounding is an acceptable practice under the FLSA as long as employees are paid for all hours actually worked. In this case, the Hospital argued (and produced evidence) that employees were not working during the time. According to the hospital, employees spent this time before and after their shifts socializing with co-workers, getting coffee and engaging in other non-work-related activities. The Hospital also pointed to its handbook provisions and argued that employees were not required to clock in five minutes before their shift start times nor directed to work during the five minutes prior to their shifts or in the five minutes after their shifts ended. Continue Reading