Allowed but It must be FAIR
Although not new, more and more employers are now “rounding” employees work time. In other words, employers are not necessarily paying employees for all the time worked.
In See’s Candy Shops Inc. v. Superior Court, the court ruled that an “employer is entitled to use the nearest-tenth rounding policy if the rounding policy is fair and neutral on its face and ‘it is used in such a manner that it will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked.”
For example, if an employee started work at 8:55 a.m., then the employer can round up to 9:00 a.m. Likewise, if an employee started work at 9:05 a.m., the employer could round back to 9:00 a.m. Over time, this practice would be fair.
Unfortunately, employers may be rounding only in ways that guarantee an employee will be paid less most—if not all—of the time.
Deducting Wages when Clocking in Late or Clocking out Early
A practice may be where an employee arrives a few minutes to work. In California, the employer may legally deduct up to thirty (30) minutes in wages. However, some employers take this further and deduct wages if the employee clocks out a few minutes early!
It is easy to see how both the actions above are not “fair and neutral.” Moreover, there is no legal justification for a thirty (30) minute deduction of wages if the employee is not clocking out 30 minutes early!
If you believe your employer is not paying you all your wages due to unlawful “rounding” or unlawful deductions, call Carlos Cerda for a FREE INITIAL CONSULTATION.