California employers may soon need to rethink and revise their time-rounding policies–even if they’re neutral. In Camp v. Home Depot, USA, the California Supreme Court is set to weigh in on whether, under California law, employers may use neutral time-rounding practices to calculate employees’ work time for purposes of paying wages. A decision limiting or prohibiting the practice could require major changes to common timekeeping practices for payroll purposes, so employers–especially those engaging in time rounding–will want to keep a close eye on developments.
Here’s what’s happened so far, and what employers should do now.
In Camp v. Home Depot USA, Inc., 84 Cal. App. 5th 638 (2022), two non-exempt employees filed a putative class action against their employer Home Depot, asserting claims for unpaid minimum and overtime wages. Home Depot used an electronic timekeeping system that captured the employee’s actual worktime by the minute. Yet, in paying out employees’ wages, Home Depot rounded its hourly employees’ total daily worktime to the nearest quarter hour. As a result of this time-rounding policy, Plaintiff Delmer Camp’s timekeeping records showed that he had lost a total of 470 minutes over approximately four and a half years. Home Depot moved for summary judgment, arguing that its time-rounding practice was neutral “both facially and as applied,” and therefore lawful under the standard in See’s Candy Shops, Inc. v. Superior Court, 210 Cal. App. 4th 889...
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