A Florida construction contractor will pay more than half a million dollars after federal investigators found it failed to properly pay workers overtime wages, largely due to improper time rounding.

Amtex-NMS Inc., which does business as Southeast Modular Manufacturing, has been ordered to pay over $594,000 in back wages and damages to 419 employees, according to the U.S. Department of Labor (DOL).

A recent investigation by the DOL’s Wage and Hour Division determined the company violated the Fair Labor Standards Act (FLSA) by not paying time-and-a-half for hours worked over 40 in a workweek.

At the center of the violation: time rounding practices that disproportionately benefited the company instead of remaining neutral — a requirement under federal law. While rounding is permitted in 5-, 10-, or 15-minute increments, it must not systematically shortchange workers.

In addition to the improper rounding, the investigation found that Amtex-NMS failed to maintain accurate records of hours worked and wages paid — another violation of the FLSA’s recordkeeping requirements.

The DOL noted that employers who don’t audit their rounding systems risk significant penalties if they consistently undercount workers’ time.
The DOL continues to increase scrutiny of construction and manufacturing employers that rely on outdated or inaccurate timekeeping systems. Companies using rounding must ensure they have clear policies that don’t systematically reduce paid time.

Experts say this case is a reminder for contractors and subcontractors to regularly review payroll practices, update timekeeping systems, and train supervisors on FLSA requirements.

Construction industry employers often face heightened wage-and-hour risks because of fluctuating work hours, multiple job sites, and seasonal labor. Small errors in rounding can add up quickly — especially when dozens or hundreds of employees are involved.

The DOL encourages workers who believe they’re not getting paid fairly to contact the Wage and Hour Division. Employers found violating the FLSA can be liable for both unpaid wages and an equal amount in liquidated damages.

For construction firms, it’s a costly lesson: when in doubt, round fairly — or not at all.

Originally reported by Virginia lawyers Weekly.