Nurse Sues Children’s Healthcare of Atlanta, Says Time Rounding Cut Overtime Pay

A former nurse, Zach Schellhase, RN, BSN, M-ED, NPD-BC, has sued Children’s Healthcare of Atlanta, alleging that its time-rounding policy reduced employees’ recorded hours and left overtime unpaid, according to the Atlanta Business Chronicle’s report.

He is seeking class-action status on behalf of all current and former non-exempt employees of the two defendants, a group the complaint estimates at roughly 1,000 or more for the FLSA collective action and at least 15,000 or more for the state law class.

The lawsuit puts a very serious question into focus: Does the time credited by payroll reflect the time actually spent working?

The proposed class and collective action alleges clock-in and clock-out rounding excluded work before and after scheduled shifts. Those allegations have not been proven.

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Law360’s case listing identifies the lawsuit as Schellhase v. Children’s Healthcare of Atlanta, Inc. et al., case number 1:26-cv-06446, filed October 23, 2026, in the U.S. District Court for the Northern District of Georgia. It lists Judge Mark H. Cohen as the assigned judge.

The central allegation is that Children’s Healthcare of Atlanta rounded employee hours down in a way that systematically reduced pay below hours actually worked.

As of press time, there has been no public response from the health system or its attorneys, and no class has yet been certified. The available coverage does not establish a court finding of wrongdoing.

Schellhase was recognized at Children’s Healthcare of Atlanta at Scottish Rite as a March 2023 Daisy Award honoree for his patient care, with two nomination letters supporting the recognition. One nomination read:

“My daughter had a recent stay on the 1st floor. We had some really bad nurse experiences with nurses and techs and then this amazing nurse showed up. He walked in with such a sweet spirit I felt at ease. My daughter had some PTSD from previous nurses and told him right away. He got down on her level and said so kindly, we are going to finish your stay with fun and smiles. She dealt with such pain and this nurse was always there not only with pain medication, but amazing therapeutic pain management. He played stuffed animals with her and always made her giggle. He took the time to help me understand her needs and listen when I had concerns. Each time she had to get up, he prepared her and counted and found ways to engage her in her own care. When we left she was so sad to leave. This stay started out terrible but this nurse made this such a joy. Thank you.”

Federal guidance does not prohibit all time rounding. The U.S. Department of Labor’s healthcare guidance explains that quarter-hour rounding can be allowed if, over time, it does not systematically shortchange workers. Under that approach, one to seven minutes may round down, while eight to 14 minutes must round up.

The same guidance addresses nurses finishing patient charts after a shift. If the employer knows or has reason to believe the work is continuing, a rule requiring advance overtime approval does not erase the obligation to pay for compensable work.

For covered, nonexempt workers, the usual federal standard is at least time-and-a-half the regular rate after 40 hours in a workweek. Certain hospitals and residential care employers may instead use an agreed-upon “8 and 80” arrangement, with overtime after eight hours in a day and 80 hours in a fixed 14-day period. That exception requires a prior agreement or understanding. The accessible reporting does not establish which arrangement applies here.

The lawsuit alleges that employees were expected to clock in and begin working up to seven minutes before their scheduled shifts. Time was then rounded forward to their scheduled starting times. According to the lawsuit, employees were told not to clock in more than seven minutes early  and also were penalized for clocking in late. 

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Even if the Schellhase case takes years to resolve, nurses who think their own hours may not add up can act now. 

• Check how your role is classified and how your hours appear on your pay statement. Under the FLSA, nonexempt nurses are entitled to overtime at one and one-half times their regular rate for all hours worked over 40 in a workweek. Salaried RNs may qualify for a professional exemption depending on their duties and pay structure, so the title ‘RN’ alone does not answer the overtime question.
• Compare your original clock punches with your paid hours. If they don’t match, ask payroll to explain the difference in writing and keep a copy.
• Keep your own records of work time and any corrections you’ve requested. A dated log you control is independent of whatever the timekeeping system reports.

For anyone considering a wage complaint, the Wage and Hour Division recommends gathering pay and employer information and offers help at 1-866-487-9243. Its complaint process is confidential.

Clocking in and out presents challenges for both employees and employers, and more healthcare systems are moving away from time-rounding altogether in favor of paying to the minute as electronic time systems make precise tracking feasible.

🤔 Have you compared your clock punches with your paid hours, and how does your workplace explain time rounding? Share your experience in the comments.