While neutral rounding policies have historically been approved by California courts, the Sixth District California Court of Appeal recently held in Camp v. Home Depot, No. H049033, 2022 WL 13874360 (Oct. 24, 2022), that employers who utilize timekeeping systems that can capture each minute worked by employees must fully compensate those employees for all time worked, instead of rounding their time (even if the rounding policy is neutral on both its face and application).
Thus, California employers who have timekeeping systems that record all employee worktime by the minute should not use a rounding policy at all, even a neutral one. See the ruling here.
Home Depot used “Kronos,” an electronic timekeeping system, to record the exact minute that an employee clocked in or out during a shift, as well as for meal breaks. Home Depot then applied a quarter-hour rounding policy to the hourly employee’s total shift time. In March 2019, plaintiffs Delmer Camp and Andriana Correa filed a putative class action against Home Depot, alleging that this rounding system resulted in unpaid minimum and overtime wages. Home Depot moved for summary judgment on the grounds that its rounding policy was neutral on its face, neutral as applied, and otherwise lawful under the California Court of Appeal’s decision in See’s Candy Shops, Inc. v. Superior Court, 210 Cal. App. 4th 889 (2012).
The trial court granted Home Depot’s motion for summary judgment, finding that its policy met the...
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