Do employers need to have a computerized timekeeping system to comply with their requirements under California law? With technological advances, it is hard to remember that just 10 years ago these questions were on top of everyone’s mind, but today it is sometimes assumed that it must be legal to keep these records electronically. However, these inquiries raise good questions about employers’ obligations under the Labor Code to create and maintain time records. Surprisingly (or maybe not so – depending on your views on how slow the law is in adapting to technological advances), the Labor Code does not address this issue right on point. Yet, there are some governing principles employers can review in making the decision on what practices are best for their business. This Friday’s Five covers five key obligations employers should consider when setting up time keeping systems:
1. Are employers required to use a particular type of timekeeping system?
California law does not require the use of any electronic type of timekeeping system or time clocks. Employers may elect to use paper and pen in recording an employee’s time. As explained below, the records should be “indelible,” meaning that the time entries cannot be erased, removed, or changed. However, even with just a handful of employees, many employers find it more efficient to use an electronic timekeeping system. Moving towards an electronic time keeping system can reduce mistakes in the recording and calculation of time...
In January of 2026, the U.S. Department of Justice reported a record-breaking year for False Claims Act recoveries, with the vast majority related to healthcare. What the DOJ report does not captu...