An employer’s quarter-hour rounding policy did not comply with California law because the company could and did track the exact time in minutes that employees worked each shift—but did not pay them for it, according to a California appellate panel.
Delmer Camp sued Home Depot for unpaid wages. He alleged that Home Depot’s electronic timekeeping system, which rounded an hourly employee’s total daily worktime to the nearest quarter hour, rather than using the actual worktime captured by the minute, resulted in the failure to pay wages for all of an employee’s time worked, in violation of the state’s Labor Code and Wage Order 7.
The parties stipulated to the analysis of certain time and pay records that covered a total of 13,387 hourly employees, 4,282,517 shifts and 516,193 pay periods. The results were that employees were paid for a number of minutes that was the same as or greater than their actual work time in 56.6 percent of the total shifts, with an average gain of 3.6 minutes and, for those who lost minutes, an average loss of 3.5 minutes.
Camp’s time and pay records showed that between March 30, 2015, and October 20, 2020, he worked 1,240 shifts and gained or lost minutes due to rounding at various points in time. During the entire period, however, he suffered a total net loss of 470 minutes, or approximately 7.83 hours, due to rounding.
Home Depot responded with a motion for summary judgment, relying on See’s Candy Shops, Inc. v. Superior Court, a 2012 decision...
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