For a decade, California courts had approved rounding policies that were neutral on their face and application. Such policies typically round an employee’s clock in and clock out times to the nearest quarter hour. Then, in 2021, the California Supreme Court decided Donohue v. AMN Services, LLC, and held that employers could not round clock in/out times for meal periods. Now, in October 2022, the Sixth District California Court of Appeal’s Camp v. Home Depot U.S.A. Inc. decision has cast doubt on the validity of neutral rounding policies for general timekeeping purposes.
Home Depot (like many employers) used Kronos to record employees’ exact clock in and out times, and Home Depot then rounds those shift clock times to the nearest quarter hour. The plaintiffs alleged that Home Depot failed to pay them for every minute worked because of the rounding policy; one plaintiff had lost more than seven hours over the course of five years from the rounding policy. The trial court found the policy to be neutral on its face and its application and granted Home Depot’s motion for summary judgment. The court of appeals reversed the decision.
The court of appeals relied on recent California Supreme Court decisions (Donohue and Troester v. Starbucks Corp.) for the proposition that employees will be paid for all time worked. The court noted that California’s wage orders are “concern[ed] with small amounts of time” and “amounts measured in minutes are compensable where the worktime is...
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