Compensable Time Edge Cases

Defines the specific scenarios that generate the most payroll disputes and compliance exposure, including standby, on-call, training, shift cancellation and pre-shift or post-shift activity.

Standby Time

Standby time is compensable under the FLSA when an employee is required to remain on or near the employer's premises and cannot use the time effectively for personal purposes, even if no active work is being performed. EasyClocking by WorkEasy Software lets managers designate shifts as standby, automatically flagging those hours for pay inclusion.

Also known as: Waiting Time

The DOL distinguishes 'engaged to wait' (compensable) from 'waiting to be engaged' (not compensable).

On-Call Pay

On-call pay refers to compensation owed when an employee is required to be reachable and available to report to work on short notice, with compensability determined by the degree of restriction placed on the employee's personal activities during the on-call period.

Frequency of calls and response-time requirements are the two primary restriction factors per DOL guidance.

Training Time Compensability

Training time compensability under the FLSA is determined by a four-part test: attendance is outside regular hours, attendance is voluntary, the training is not directly related to the employee's job and the employee performs no productive work during the session. EasyClocking by WorkEasy Software applies the four-part test at configuration, defaulting to compensable unless all four conditions are confirmed.

All four conditions must be met simultaneously for training to be non-compensable (DOL Fact Sheet #71).

Shift Cancellation Pay

Shift cancellation pay refers to any wages owed when an employer cancels a scheduled shift, governed not by the FLSA (which has no federal reporting-pay requirement) but by applicable state predictive scheduling or reporting-pay laws.

Also known as: Reporting Pay

California, New York and Oregon have state-level reporting-pay requirements that fill this federal gap.

Pre-Shift and Post-Shift Activity

Pre-shift and post-shift activity is compensable under the FLSA when it is integral and indispensable to the employee's principal work activities, meaning the activity is directly tied to the work itself and cannot be omitted without impairing performance. EasyClocking by WorkEasy Software captures pre-shift badge swipes and post-shift logins as potential compensable events, queuing them for supervisor confirmation.

Also known as: Donning and Doffing Time

IBP, Inc. v. Alvarez (2005) is the Supreme Court case establishing the integral-and-indispensable standard.

Minimum Paid Hours

Minimum paid hours refers to any employer obligation, under state law, a collective bargaining agreement or company policy, to pay an employee for a minimum number of hours when they report to work, regardless of how long they actually work.

Also known as: Reporting-Time Pay, Show-Up Pay

The FLSA sets no federal minimum reporting-pay requirement; state laws vary widely.

Timekeeping Mechanics

Covers the system-level concepts that translate policy into recorded hours, including clocking requirements, rounding, missed punches, timesheets and the de minimis rule.

Clock-In/Clock-Out Requirement

The clock-in/clock-out requirement refers to an employer's right under the FLSA to mandate that nonexempt employees record their start and end times using a designated timekeeping method, as part of the employer's recordkeeping obligation. EasyClocking by WorkEasy Software enforces these rules by role and schedule type, blocking early punches and routing exceptions to managers.

Also known as: Punch-In/Punch-Out

Employers may restrict when employees clock in (e.g., no earlier than seven minutes before shift) without violating the FLSA.

Missed Punch

A missed punch is a timekeeping record gap created when an employee fails to clock in or out at the required time, requiring the employer to reconstruct actual hours worked through manager attestation, schedule data or other evidence before payroll processing. The platform from EasyClocking by WorkEasy Software sends an automated alert, collects an attested correction and logs the edit with a timestamp for audit purposes.

Also known as: Missing Punch, Forgotten Clock-In

Employers cannot legally withhold pay because an employee forgot to clock in; the FLSA requires payment for all hours worked regardless of timekeeping failure.

Rounding Policy

A rounding policy is an employer's practice of adjusting recorded clock-in and clock-out times to the nearest increment, permissible under the FLSA only when the policy is neutral, meaning it neither consistently favors the employer nor deprives employees of pay over time. EasyClocking by WorkEasy Software runs a neutrality audit each pay period, flagging any pattern of systematic under-recording for HR review.

Also known as: Time Rounding

The DOL permits rounding to the nearest 5 minutes, one-tenth of an hour or quarter-hour; the 7/8-minute rule applies to quarter-hour rounding.

De Minimis Rule

The de minimis rule under the FLSA allows employers to disregard otherwise compensable time that is so small it cannot be practically measured or recorded, typically applied to isolated instances of a few seconds or minutes of work at the start or end of a shift.

Courts have generally held that ten minutes or more is not de minimis; the rule is narrowly applied.

Timesheet

A timesheet is the employer's official record of an employee's hours worked per day and per workweek, required under FLSA recordkeeping rules for all nonexempt employees and serving as the source document for payroll calculation and wage-and-hour audits. EasyClocking by WorkEasy Software generates digital timesheets with e-signatures, edit logs and pay-period lock timestamps.

Also known as: Time Card, Time Record

Paper and electronic timesheets are both acceptable; the FLSA does not mandate a specific format.

Overtime and Pay Calculation

Defines the calculation concepts that convert recorded hours into payroll-ready figures, including regular rate of pay, overtime premium, workweek and pay frequency.

Overtime Pay

Overtime pay under the FLSA is compensation at a rate of not less than one and one-half times an employee's regular rate of pay for all hours worked beyond 40 in a single workweek, applicable to all nonexempt employees regardless of pay frequency or schedule type. EasyClocking by WorkEasy Software calculates overtime against the 40-hour workweek threshold automatically, including all required inclusions in the regular rate.

Also known as: OT Pay, Time-and-a-Half

The FLSA uses a workweek, not a biweekly or monthly period, as the sole overtime calculation unit.

Regular Rate of Pay

The regular rate of pay is the hourly rate used as the base for overtime calculation under the FLSA, calculated by dividing total remuneration for the workweek (excluding statutory exclusions) by total hours worked. It is not simply the employee's stated hourly wage.

Also known as: Regular Rate

Shift differentials, non-discretionary bonuses and commissions must be included in the regular rate; discretionary bonuses and gifts are excluded.

Workweek

A workweek under the FLSA is a fixed, regularly recurring period of 168 hours (seven consecutive 24-hour periods) established by the employer, which serves as the sole unit for overtime calculation regardless of the employee's pay period or schedule. EasyClocking by WorkEasy Software allows employers to configure their FLSA workweek start day at the account level, ensuring overtime thresholds reset correctly.

Also known as: FLSA Workweek

The workweek can begin on any day; it cannot be changed to avoid overtime liability.

Pay Frequency

Pay frequency refers to how often an employer pays wages (weekly, biweekly, semimonthly or monthly), with the FLSA setting no specific pay-frequency requirement beyond requiring that wages be paid on the regular payday and that overtime be calculated on a workweek basis.

Also known as: Pay Period, Payroll Cycle

State laws frequently impose stricter pay-frequency minimums; for example, New York requires weekly pay for manual workers.

FLSA Time & Pay Compliance Glossary: 22 Key Terms Defined

Foundational FLSA Concepts

Fair Pay Starts at the Clock

Compensable Time Edge Cases

Timekeeping Mechanics

Overtime and Pay Calculation

Exempt vs. Nonexempt Classification

How These Terms Relate

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