Forum Discussion
Calculation returns wrong value
- I suspect H33 is not 0.18, but 0.18333333 (11 minutes). Regardless of how you format the cell, it doesn't change the actual value of the cell contents.
Try: =Round(H33,2)*G34
[.... withdrawn to avoid confusion ....]
Yes, I am assuming the OP knows whether or not the desired result follows company policies and applicable federal/state laws. I'm not a legal expert, but from what I've read regarding the DOL policies on rounding, they look for rounding practices to be consistent and neutral. For example, if an employee clocks in at 8:08, you may round up to 8:15, but to be fair you must round down if they clock in at 8:07. It's a clear violation if you always rounded down (i.e. not neutral). So, over time, a consistent rounding practice should average out and the employee would end up being paid for all time actually worked (from what I've read, the DOL has indicated it would accept rounding up to 30 minutes as long as the rounding averages out, so rounding to 2 decimals appears reasonable).
None of which is a legal opinion, of course, I'm just saying I don't see any obvious issue with it.
- Thank you for your insight
Yes, correct answer is 3.78 based on FLSA-2019-9
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Specifically, employees generally clock in and out for each work period using a time clock or computer and the payroll software converts the amount of time an employee records working in each work period into a numerical figure in decimal form extended out to six decimal points (e.g., 7 hours and 30 minutes converts to 7.500000 hours). The payroll software then totals the converted hours (extended to six decimal points) for each work period on each working day to calculate a numerical figure for daily hours, which is also extended out to six decimal points. Next, the software rounds that number to two decimal points - if the third decimal is less than .005, the second decimal stays the same (e.g., 6.784999 hours worked rounds down to 6.78 hours); but if the third decimal is .005 or greater, the second decimal rounds up by 0.01 (e.g., 6.865000 hours worked in a work day rounds up to 6.87 hours). Finally, the software calculates daily pay by multiplying the rounded daily hours number by the [employees' wage].
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(New FLSA Opinion Letters Address Rounding, Bonuses and Paralegals | News | Tools | XpertHR.com)
Thus 0.183333 is rounded to 0.18; 21x0.18 = 3.78
SergeiBaklan wrote: ``Yes, correct answer is 3.78 based on FLSA-2019-9``
I removed my comments about whether or not to round hours to 2 decimal places. My comments were intended to be "food for thought" for the Jenni58 , not about the solution presented by JMB17 .
But given the tone of the follow-up responses, I renew my suggestion to Jenni58 to consult __state__ labor laws regarding rounding, if this is truly an important payroll matter.
First, FLSA-2019-9 applies to __federal__ labor laws. They may or may not apply to Jenni58's situation. For example, a 2018 California Supreme Court decision holds that California labor laws do not "incorporate" certain guidelines found in the FLSA.
Second, FLSA-2019-9 does __not__ dictate that hours should be rounded to 2 decimal places. On the contrary, FLSA-2019-9 states that ``FLSA regulations __allow__ employers to round employees' starting and stopping times to the nearest five minutes, or to the nearest one-tenth or quarter of an hour``.
And even that is not a mandate. Note the word "allow", not "require".
The purpose of FLSA-2019-9 is to address the question of whether one __employer's__ practice of rounding hours to 2 decimal place is compliant. FLSA-2019-9 does conclude that ``this method of rounding __complies__ with the FLSA``.
But the operative word is "complies". Again, it is not "required" or even a "guideline".
Third and more to the point, Jenni58 seems to work for GT Landscape Solutions - King, which might be a company in Oregon or California. So Oregon or California labor laws might apply.
Off-hand, I cannot find Oregon and California regulations regarding rounding hours for the purpose of calculating pay.
But as a demonstration that they might not follow federal DOL guidelines, I note the following excerpts from one lawyer's presentation at a conference on Oregon labor laws, which contrast Oregon and "FLSA/Washington" practices regarding rounding start and stop times (not the rounding of hours per se for the purpose of calculating pay).
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OREGON: no authority permitting rounding. Oregon statutes refer to "all wages" paid.
FLSA & WASHINGTON: permit true rounding where the rounding (in practice) works both for and against the employee. Commonly called the "7 minute rule".
Key is whether by calculation or practice the round tends to favor the employer-----
Noting that in Jenni58's example, rounding hours to 2 decimal places results in lower pay ("favoring the employer"), it might not be unreasonable to ask whether that practice would be allowed in Oregon and California (if those are even the correct state laws to consider in her case).
Be that as it may, the point of my now-deleted comments was for Jenni58 to ask whether she should round the Excel calculation to match her calculator calculation, or she should perform the calculator calculation to match the Excel calculation (with the exact fraction of hours, namely 11/60).
Only Jenni58 can answer that question dispositively for herself, using due diligence if this is truly an important payroll matter.
- Thank you. I appreciate the insight. Our business is NOT rounding up/down but calculating the actual time difference from clock in/clock out.
