Employers generally need to track the time worked by their employees. Even workers paid on a salary basis have to clock in and out to demonstrate when they were on the job. For hourly workers, time clock records determine how much they earn. Businesses generally have an interest in keeping their staffing costs as low as possible. They may limit how much they schedule workers. They may try to avoid overtime scenarios whenever possible.
Can businesses lawfully alter time clock records to limit the wages they pay or prevent overtime liability?
Time clock adjustments are sometimes lawful
Employers generally have the right to modify the time that a worker clocked in or clocked out when there is clear documentation that the current record is inaccurate. For example, maybe a worker showed up to their job and faced a surprise situation where they needed to immediately start helping a co-worker.
They might forget to clock in. The company can adjust records to reflect when they began working. Similarly, if employees forget to clock out at the end of a shift, employers can modify internal records based on when they actually left their jobs.
However, companies cannot modify time in or time out to avoid overtime or reduce workers’ pay. In fact, the high courts in California have even ruled against the practice of time clock rounding.
Employers should not modify time worked by rounding it to a larger increment than a minute. Under California law, they also have to pay workers for all time worked, meaning that employees should not perform job tasks before or after a shift. Employers should not adjust time clock records to deny employees pay for time that they worked.
In scenarios where employers inappropriately modify time clock records, workers may have grounds for wage and hour claims. Learning more about the rules that regulate the rights of hourly workers can be beneficial for those employees and the companies that employ them.