Last Updated on September 25, 2025 by MyHRConcierge

When it comes to wage and hour compliance, even small oversights in time tracking can lead to significant consequences. A recent U.S. Department of Labor (DOL) enforcement case against a Florida construction contractor is a timely reminder for employers across all industries to examine their payroll practices- particularly time rounding and overtime pay. In this “Beyond the Bench” blog post, we break down the case, explain time rounding laws and share practical steps to help your business stay compliant and avoid costly penalties.

Case Overview

On May 27, 2025, the U.S. Department of Labor announced that Amtex-NMS Inc., operating as Southeast Modular Manufacturing in the Sunbelt Modular chain, would pay a total of $594,313 in back wages and liquidated damages to 419 employees. The Leesburg, Florida-based construction contractor was found to have violated multiple provisions of the Fair Labor Standards Act (FLSA) during a federal investigation conducted by the DOL’s Wage and Hour Division (WHD), including not paying workers time-and-a-half their regular rate for all hours over 40 hours in their workweek.

According to the investigation, Amtex-NMS implemented a time rounding system that disproportionately benefited the employer. Instead of rounding impartially, the company’s system consistently rounded down employees’ clocked hours, ultimately reducing total recorded hours worked- particularly those that would qualify for overtime pay.

Under the FLSA, nonexempt employees must receive time-and-a-half pay for any hours worked over 40 in a workweek. However, the employer’s rounding method led to workers routinely being undercompensated for overtime hours. The U.S. Department of Labor has recovered $594,313 in back wages and damages for 419 workers, or $1,418 per worker.

What Is Time Rounding? 

Time rounding refers to the practice of adjusting employee time entries to the nearest increment- commonly to the nearest 5, 10 or 15 minutes. This can mean rounding up or down depending on when the employee clocks in or out. 

For example: 

• If an employee clocks in at 8:03 AM and your policy rounds to the nearest 5 minutes, their time might be recorded as 8:05 AM. 
• Conversely, if the employee clocks in at 8:02 AM, their time may be rounded back to 8:00 AM. 

When implemented correctly, it can streamline payroll processing, streamline time tracking and help maintain cost efficiency through reducing overpayment or underpayment risks, while still adhering to labor laws. 

If an employer’s rounding system regularly causes workers to lose compensable time, it is considered non-compliant and subject to penalties, as in the Amtex-NMS, Inc. case.

Best Practices for Implementing Time Rounding Policies 

To avoid wage and hour violations, employers should take proactive steps:

1. Document Your Policy: Clearly outline your rules and policies in your employee handbook. 
2. Train Supervisors and Payroll Staff: Ensure your team understands and correctly applies the rounding policy. 
3. Use Reliable Time Tracking Systems: Invest in systems that accurately record time and apply rounding rules automatically. 
4. Regularly Review and Audit Practices: Conduct periodic reviews to ensure your policies remain neutral and compliant with federal and state laws. 
5. Seek Compliance Guidance: Consult with experts, such as the team at MyHRConcierge, to ensure your rounding practices maintain compliance with all applicable state and federal laws. 

Why This Matters for Employers

The case against Amtex-NMS Inc. illustrates how improper timekeeping practices- even those that may seem small- can lead to large-scale wage violations. With over $594,000 in back pay and damages assessed, this is a costly lesson in the importance of fair and transparent overtime practices.

Employers that rely on outdated systems or lack oversight over time tracking procedures may be unknowingly violating labor laws. The result? Audits, penalties and a damaged reputation. Aside from the FLSA, some states have state-specific time rounding regulations. See a chart of state-specific considerations here. Always be sure to confirm your state’s specific regulations regarding time rounding, as these are subject to change.

For more information on how MyHRConcierge can assist your organization, contact us at 855-538-6947 ext.108, ccooley@myhrconcierge.com. Or, schedule a convenient consultation below: