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California Client News
   Posted October 01, 2008                                                                                    JLZ Business Services
 

Calculating Employee Hours Worked  

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Here's the rules as quoted directly form the Division of Labor Standards Enforcement Policies and Interpretations Manual
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44 Calculating Hours Worked
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44.1 The Division utilizes the practice of the U.S. Department of Labor of "'rounding" employees hours to the nearest five minutes for purposes of calculating the number of hours worked pursuant to the following restrictions.
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44.2 In recording working time, insubstantial or insignificant periods of time beyond the scheduled ,working hours which cannot as a practical administrative matter be precisely recorded for payroll purposes, may be disregarded. The courts have held that such trifles arc de minimis Clemmons Pottery Company, 328 U.S. 680 (1946); Lindow v. United States 738 F .2d 1057 (9th Cir.1984) ) This rule applies only where there are uncertain and indefinite periods of rime involved of a few seconds or minutes duration, and where the failure to count such time is due to considerations justified by industrial  realities. An employer may not arbitrarily fail to count as hours worked any part, however small, of the employee's fixed or regular working time or practically ascertainable period of time he is regularly required to spend on duties assigned to him. See Glnn L Marlin Nebraska Co. v. CIIlhn, 197 F. zd 981,987 (C.A. 8,1952), ,erl. denied, 344 U.S. 866 (1952), reheating denied, 344 U.S. 888 (1952), holding that 'Working time amounting to $1 of additional compensation a week is "not a trivial matter to a working man," and was not de minimis, Addison v. Huron Stevedoring Corp., 204 F. 2d 88, 95 (C.A. 2, 1953), (m. denied 346 U .S. 877, holding that "To disregard workweeks for which less than a dollar is due will produce capricious and unfair results." Hawkins v. E.I. Du Pont de Nemours & Co., 12 W.H. Cases 448, 27 Labor Cases. para. 69.094 (ED. Va.,1955), holding that 10 minutes a day is not de minimis.
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44.3 Differences between clock records and actual hours worked. Time clocks are not required but in those cases where time clocks are used, employees who voluntarily come in before their regular starting time or remain after their closing time do not have to be paid for such periods provided, of course, that they do not engage in any work. Their early or late clock punching may be disregarded. Minor differences between the clock records and actual hours worked cannot ordinarily be avoided. but major discrepancies should be discouraged since they raise a doubt as to the accuracy of the records of the hours actually worked.
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44.4 Rounding practices. There has been that practice for many years of recording the employees' starting time and stopping rime to the nearest 5 minutes, or to the nearest one-tenth of quarter of an hour. Presumably, this arrangement averages out so that the employees are fully compensated for all the time they actually work. For enforcement purpose this practice of computing working time will be accepted, provided that it is used in such a manner that it will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked. (29 C.F.R § 785.48(b».
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