Across many unionized work environments, accurate time tracking is not just a managerial preference—it’s a legal and contractual necessity. Time management systems like Kronos, now UKG, are relied on to automate and streamline the tracking of employee work hours. However, in several union sites where these systems were deployed, a particular combination of punch rounding rules and automated timecard locking policies unintentionally led to employees losing hours they had actually worked. This article explores how these losses occurred, the operational gaps identified, and the policy reforms that eventually restored payroll accuracy.
TL;DR – Summary
Union employees across multiple sites experienced missing hours due to the way Kronos/UKG systems rounded punch times and locked timecards before corrections could be made. The combined policies created a gap between hours actually worked and hours paid, eroding trust and compliance. After thorough investigations and union interventions, companies adjusted both rounding parameters and lock schedules, regaining accuracy and employee confidence. This case offers key lessons in aligning system automation with contractual labor agreements.
The Mechanics of Punch Rounding
Punch rounding is a feature in many timekeeping systems that adjusts clock-in and clock-out times to the nearest increment, such as 5 or 15 minutes, to simplify payroll processes. This feature is rooted in fair labor practices when used correctly, often rounding in favor of the employee as much as it does the employer. However, problems began when rounding rules were paired with strict timecard lock schedules, effectively freezing employee time records before discrepancies could be corrected.
Consider a union site where the rounding policy was set to 15-minute intervals. If an employee clocked in at 6:07 AM, the system would round the time to 6:00 AM. Similarly, if the employee clocked out at 2:53 PM, the system might round the time to 3:00 PM. Issues arose when these rounded times didn’t reflect actual site operations or contractually guaranteed paid time, especially when combined with auto-locking of timecards before discrepancies could be reviewed.
Automated Timecard Locking Policies
Many organizations implement automated timecard locks at predetermined intervals, often at the close of every payroll period. The intent is to ensure timely processing of payroll. However, when timecards were locked on a rigid schedule—sometimes immediately after an employee’s punch data uploaded—employees and even supervisors were left unable to correct errors or add missing punches.
This was especially significant in union sites where manual entry or supervisor correction was occasionally required due to various factors like site access delays, biometric scanner errors, or punch system outages. Due to the accelerated locking policy, these unreconciled punches stayed uncorrected, and payroll was processed based on inaccurate data.
Contractual Implications for Union Sites
Most union agreements have clearly defined language around paid work start and end times, grace periods, and mandated breaks. When timekeeping systems deviated from these standards, even unintentionally, the impact went beyond payroll errors—it became a contractual violation. In several high-profile union sites, grievances were filed due to repeated underpayment of scheduled hours or missed overtime eligibility caused by rounding and locking mismatches.
Union representatives pointed out that the systems were not fully aligned with the collectively bargained agreements (CBAs), which required pay based on actual time worked rather than rounded averages, unless specifically agreed otherwise. The strict locking protocols made it difficult for managers to apply manual corrections post-payroll processing, further violating these agreements.
The Investigation and Root Cause Analysis
After escalations from several union committees, third-party auditors and internal compliance teams initiated a thorough review of the Kronos/UKG system configurations. They found that three key variables were creating the problem:
- Non-employee-favored rounding: Some rounding configurations disproportionately shortchanged employees by regularly rounding down or delaying start times.
- Automated locking immediately post-shift: Timecards locked too quickly, preventing supervisors from making corrections for missed or incorrect punches.
- Poor visibility and alerts: Neither employees nor supervisors were alerted when hours were auto-adjusted or timecards were locked.
This analysis confirmed that these configurations were not deliberately malicious, but the cumulative effect was significant, leading to wage inconsistencies and a breakdown in employee trust.
Policy Adjustments That Corrected the Issue
Following the investigation, organizations made several policy and system changes, often in collaboration with union leadership and Kronos/UKG technical teams:
- Adjusting rounding rules: Rounding policies were changed to comply with union contracts—many sites shifted from 15-minute rounding to 1-minute or 5-minute windows with tie-breakers in favor of the employee.
- Extending lockout timelines: Timecards were no longer auto-locked immediately after shifts. Supervisors were granted 48 to 72 hours post-shift to review and correct entries.
- Alert mechanisms added: Timekeeping dashboards now feature alerts for unapproved punches or discrepancies, prompting proactive resolution before payroll periods close.
- Audits and retroactive corrections: Payroll audits were conducted going back several periods. Affected employees were reimbursed, and policies were codified to prevent recurrence.
Rebuilding Confidence and Compliance
The successful overhaul of timekeeping and locking policies not only restored hours to correctly reflect what was worked—it also reinstated confidence in the payroll system. More importantly, it emphasized the crucial role of aligning technology-driven automation with the specific legal and contractual obligations of a unionized workforce.
By collaborating openly with union leadership and involving employees in the review process, organizations prevented further grievances and showed good faith in remedying unintentional payroll issues. The incident has since become a case study in how automation can unintentionally disrupt labor relations, particularly when human oversight is removed from critical processes like payroll authorization and corrections.
Key Takeaways
- Timekeeping automation must be aligned with collective bargaining agreements and local labor laws.
- Rounding and locking automation should include manual override and post-shift correction windows.
- Regular audits and feedback loops are critical in maintaining trust and compliance in payroll systems.
Frequently Asked Questions (FAQ)
What is punch rounding and why can it be an issue?
Punch rounding adjusts clock-in and clock-out times to the nearest increment, like 5 or 15 minutes. This can become problematic if it consistently rounds in a direction that does not reflect the actual worked time—particularly under union agreements specifying accurate time-based pay.
Why were timecards locked so quickly in Kronos/UKG systems?
Timecards were locked quickly to streamline payroll processing but this overlooked the operational need for supervisors to make post-shift corrections, especially on unionized worksites where timing disputes are common.
How did the policy update fix the problem?
The fixes included employee-favored punch rounding, more time for supervisors to edit timecards, better visibility on discrepancies, and audits to identify and reimburse missing hours.
Can this problem happen in other timekeeping systems?
Yes, any automated timekeeping system with preset rounding and locking configurations can inadvertently cause similar issues if not regularly audited and adjusted for contractual compliance.
How often should payroll and timekeeping audits be conducted?
Experts recommend monthly audits in union environments and after any system or policy change. Real-time alerts and exception reports should also be used proactively.
