It has never been easier for employers to track the time employees work accurately. Digital timekeeping software can capture the exact time shifts begin and end, down to a fraction of a second.
Most companies operating in California keep accurate payroll records, especially if they have hourly workers on staff. However, some companies may have more lax policies regarding timekeeping and payroll accounting.
Some organizations pay workers in larger increments of time, and they round the amount of time worked instead of calculating the exact time for payroll purposes. Those choices could potentially lead to a wage and hour lawsuit.
California has strict rules
Technically, federal regulations allow for time clock rounding when calculating a worker’s pay. So long as the increment of time is 15 minutes or smaller and the company applies its rounding practices neutrally, a business can justify estimating the amount of time worked when calculating pay.
That is not true in California. State courts have ruled that time clock rounding violates a worker’s right to pay for all of the time worked. Even small businesses have access to software and equipment that can keep accurate records without creating undue hardship for the company. As such, companies that began in other states may need to adjust their practices to comply with California state standards.
In cases where employers have rounded workers’ time in and out of their jobs, affected professionals may have grounds for a wage and hour lawsuit. Learning more about California’s unique wage laws and evaluating pay history can help frustrated professionals determine if they have experienced a wage and hour violation that warrants litigation.