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.
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