FLSA Opinion Letter: Pre-Shift Activities and Payroll Rounding Practices

The Department of Labor (DOL) released a Fair Labor Standards Act (FLSA) opinion letter on May 28, 2026, that provides clarity on several common timekeeping practices for nonexempt staff.

The Situation

A nonexempt hospital employee wrote to the DOL requesting clarification on the compensability of time and the hospital’s payroll practices. Specifically, the employee questioned:  

• Is pre-shift work that is integral to the job compensable under the FLSA?
• Is time spent waiting to clock in, due to station bottlenecks outside the employee’s control, compensable?
• May the hospital invoke the de minimus rule to exclude daily time losses of up to 7 minutes per employee?
• May an employer round early clock-ins at the start of a shift while prohibiting early clock-outs?

Findings

The DOL reviewed the questions on a case-by-case basis, and provided the following opinions:

• Activities that are integral and indispensable to the employees’ principal job duties are compensable. In this example, respiratory therapists were engaging in patient handoff activities, completing required documentation, and assigning staff to work locations. This was deemed integral and indispensable.
• However, time spent waiting to clock in is not compensable as it occurs before the first principal activity and is not integral and indispensable to the job.
• The de minimus rule, as it relates to the FLSA, means that infrequent and insignificant periods of time beyond scheduled work hours may be disregarded. This rule applies when there are uncertain and indefinite periods involved – from a few seconds or minutes – where failing to record time worked is justified by business realties. In this case, the time spent on pre-shift activities each day is unlikely to meet the de minimus rule. Employers should use caution when applying this exception and take proactive steps to enforce clear policies prohibiting employees from performing work prior to the start of a shift.
• Employers are permitted to apply rounding practices to simplify pay, if the rounding practice is neutral and does not undercompensate employees for hours worked. As such, it is not permissible for an employer to round early clock-ins while prohibiting early clock-outs.

Reminder

Nonexempt employees are entitled to pay for all hours worked. Employers should use caution when applying the de minimus rule.