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Rounding Policy Not Complete Defense to Wage and Hour Claims in California

When an employer tracked the exact time in minutes that employees worked, and those time-keeping records showed that an employee was not paid for all the time he worked, the employer could not simply rely on its neutral rounding policy as a defense.
United States Supreme Court See Candy Shops Inc Starbucks Corp Industrial Welfare Commission Impact Of California Supreme Court
Source: shrm.org

California Employers Wage and Hour Concerns in 2023

Since 2012, when the California appellate court decided See’s Candy Shops, Inc. v. Superior Court, employers have presumed that so long as their rounding policy was neutral on its face. This conclusion was called into question in the recent case of Camp v. Home Depot.
United States Adrianna Correa See Candy Shops Inc Starbucks Corp Home Depot United States Inc California Supreme Court

California Court Rules Against Employers Using Time Rounding

The Sixth District California Court of Appeal held in Camp v. Home Depot that employers who utilize timekeeping systems that capture each minute worked by employees must fully compensate employees for all time worked, instead of rounding even if the rounding policy is neutral.
United States Andriana Correa Second District California Court See Candy Shops Inc District California Court Districts Of The Court

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Are Time Rounding Work Policies Legal in California?

Camp v. Home Depot questions the continued viability of time rounding policies in California. Time rounding policies are lawful in California if the policy is fair and is used in a way that compensates the employees properly for all the time they have actually worked.
United States See Candy Shops Inc Home Depot United Statesa Inc California Court California Supreme Court Depot United Statesa

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