In Part 2 of our blog series highlighting some of the risks for employers when pay and time practices don’t comport with wage and hour laws, the case details and key takeaways below should provide West Coast employers cautionary insights into timecard rounding practices. Read Part 1 of our series here.
Are Timecard Rounding Practices Still Lawful Given Current Timekeeping Technology?
Many industries and employers have a long-standing practice of rounding time clock entries to the nearest 15-minute mark. Federal and most state laws officially allow this, provided that practice is neutral on its face and over the course of employment the time rounded down and the time rounded up generally balance out.
But this practice started when employers primarily used mechanical time clocks or paper timecards, with paychecks being calculated by hand. In today’s world, most employers use electronic or digital time clocks that can easily record time and calculate pay to the minute. That technology may make the use of time clock rounding a more risky proposition now.
In the recent case of Delmer Camp v. Home Depot U.S.A., Inc., H049033, 2022 WL 13874360, at *2 (Cal. Ct. App. Oct. 24, 2022), the Sixth Appellate District of California (covering Santa Cruz, Santa Clara, San Benito, and Monterey Counties) cast doubt on employer time clock rounding policies, particularly when those policies are applied to minute-accurate time systems. Given that federal and other states’ laws are premised on...
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