California Wage and Hour Win for Employers: Rounding Policies and Timesheet Certifications

On December 10, 2018, a California Appellate Court published its decision in Donohue v. AMN Services, LLC, affirming class-wide summary judgment for the employer.  The court’s decision in this wage and hour case presents some interesting take-aways for California employers in that it endorses the lawfulness of widespread timekeeping practices that class action attorneys often seek to challenge as unlawful. First, a California court has again found the practice of implementing a “fair and neutral” rounding policy for employee timeclock entries to be lawful.  The court affirmed that a rounding policy is “fair and neutral” where “on average, it favors neither overpayment nor underpayment,” irrespective of whether it involves an underpayment for certain individuals or certain periods of time.  The employer submitted an expert opinion that their practice of rounding employee punch times to the nearest ten-minute increment did…

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