California employment case index

Ask what California law says about rounding employees' time punches and the honest answer is that nobody knows. One Court of Appeal decision approved the practice in 2012, borrowing its standard from a federal regulation; it has never been overruled and still binds trial courts. But the Supreme Court has twice declined to adopt it, saying in Donohue that it "has never decided the validity of the rounding standard articulated in See's Candy I" — and then deciding that case on an assumption rather than an endorsement. Two Courts of Appeal have since rejected rounding where the employer captured exact minutes and underpaid anyway, and the Supreme Court granted review in both. The result is a genuine vacuum: the binding authority is the weakest, the strongest reasoning cannot bind, and the question sits with the Supreme Court in S277518. This piece sets out precisely what has been decided, what has not, and what to do in the meantime.

The unpaid-wages component of section 558 is not a civil penalty recoverable through PAGA; only the fixed civil penalties ($50/$100 per employee per pay period) are PAGA penalties. Because the unpaid wages are not part of the PAGA claim, the trial court could not compel that portion to arbitration as if it were.

There is no California statute or case law authorizing or prohibiting employee time rounding, so Division One borrowed the federal rule: an employer may round punch times to the nearest tenth of an hour if the policy is fair and neutral on its face and, as applied, does not fail over time to compensate employees for the time they actually worked. The posture is narrow – a writ vacating summary adjudication on two of the employer's affirmative defenses, with the court expressly leaving open whether either side will prevail. The plaintiff's expert lost the case by treating the employer's separate grace-period policy as if it were rounding. Whether neutral rounding survives at all is now pending before the California Supreme Court in Camp v. Home Depot, S277518.

Section 132a does not provide an exclusive remedy; an employee may pursue FEHA disability-discrimination and common-law wrongful-termination claims notwithstanding the availability of a section 132a remedy.