A couple of clients have recently informed me that the NJ Department of Labor is requiring employers who track time with a time clock to report the EXACT time on payroll.  If they report hours that round to, say, the nearest quarter hour, they are requiring the employer to go back through payroll records for three years and to compensate anyone who was not rounded in their favor.  This can be a major administrative headache and it could cost you.  It does not matter if you rounded down as many times as you rounded up.  The rules state that an employee must be paid for time worked, period. 

Bottom line:  If you have a time clock, report the actual time worked.  Keep the time sheet/card records for at least 6 years.