Under both the federal Fair Labor Standards Act and state law, an employer may use a time clock that averages to the nearest quarter hour for purposes of computing hours worked and meal and rest breaks–so long as the time clock rounding policy is facially neutral and does not, over time, undercompensate workers. See Corbin v. Time Warner Entm’t-Advance/Newhouse P’ship. (9th Cir. 2016) 821 F.3d 1069. The employer need not show that the policy does not undercompensate any particular worker. It is enough if the employer shows that, over time, the policy results in overcompensation of workers as a whole and that a majority or close to a majority of workers are on average overcompensated.
California Court of Appeal, Second District, Division 4 (Manella, J.); June 25, 2018; 2018 Cal. App. LEXIS 581