Risks of Rounding: Court Requires Timekeeping to the Minute

November 09, 2023 | From HRCalifornia Extra

by Michelle Galbraith, J.D.; Employment Law Expert, CalChamber

California employers often round employee time punches to a portion of an hour — the practice can allow employees leeway when running a few minutes late, and it often simplifies payroll and invoicing. Federal law, California’s Division of Labor Standards Enforcement (DLSE) and California appellate court decisions had long approved of rounding, as long as it was neutral and didn’t work to systematically deny employees their full wages.

In the past few years, however, some California courts of appeal have issued opinions disapproving of rounding policies, and the California Supreme Court is currently hearing a case — Camp v. Home Depot U.S.A. — that will resolve the conflicts between the legal decisions.

  • ​​


    This premium content is for our members. For immediate access, join online or by phone at 800-331-8877. Or Start a Free Trial Now for 7 days.

    Already a Member? Sign In Below.

Sign In
Remember Email