Is It OK To “Round” An Employee’s Worktime?
November 30, 2012 01:00
by John E. Thompson
For many years, some employers have chosen to “round” non-exempt employees’ time entries in computing their wages. News items in recent days have reported on a California appellate court’s ruling in See’s Candy Shops, Inc. v. Superior Court and Silva that a properly administered “rounding” practice does not violate California wage-hour law.
It is first necessary to attach a common understanding to the term “rounding”, because the word is used to describe a multitude of different practices. This can be done with reference to the U.S. Labor Department’s enforcement policy that played a central role in See’s Candy. USDOL says that, under the FLSA, it will not challenge an employer’s practice of rounding a worker’s starting and stopping times to the nearest 5 minutes or to the nearest tenth or quarter of an hour in calculating his or her pay, assuming that the practice “averages out over a period of time” such that employees are properly paid for all of their worktime. See, e.g., 29 C.F.R. § 785.48(b).
Read the remainder of the Article at my partner and wage-hour wizrd, John Thompson’s Blog (along with Lawrence McGoldrick and other F & P attorneys)