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BT Currents - Hot Topics in Employment Law
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29 Jun 2018 Round Up: Court Rules Rounding Payroll System Permissible Even When (a slight) Majority of Employees Lose Time

A California state appeals court recently held that two California hospitals’ practice of rounding all employee time punches to the nearest quarter-hour was allowed, even when a majority of employees lost time. California law permits employers to round time entries when the payroll rounding system is neutral on its face “without an eye toward whether the employer or the employee is benefiting from the rounding,” and when it does not “systematically undercompensate employees over time.”   In this case, one hospital’s rounding payroll system subtracted time…

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