Transportation Brief: California Court Invalidates Employer’s Time Rounding Policy

by Christopher J. Eckhart, James A. Eckhart

January 31, 2023

Motor carriers that employ California workers and use time rounding policies should be aware of the recent decision in Delmer Camp v. Home Depot. The employer used an electronic timekeeping system to track worktime for wages. Although the system recorded the specific minutes when the worker clocked in and out, the employer rounded the worker’s total daily worktime to the nearest quarter hour and paid the employee based on those rounded hours. Because the rounding policy was neutral on its face, the trial court ruled in favor of the employer. But the appellate court reversed, holding that because the employer in fact tracked the employee’s worktime by the minute, it was not entitled to round the employees’ hours. Employers using rounding policies in California should review their timekeeping and payroll systems to ensure compliance with this new decision.

Scopelitis’ Transportation Brief® is intended as a report to our clients and friends on developments affecting the transportation industry. The published material does not constitute an exhaustive legal study and should not be regarded or relied upon as individual legal advice or opinion.

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