Purpose/Objective
In adherence to legal responsibilities for maintaining a precise time card and guaranteeing proper compensation for employees’ labor, companies must should mandate that all nonexempt staff accurately document their working hours each day. Employers violating California time card laws by altering or incorrectly recording employee hours could lead to a class action lawsuit. Our California employer class action defense attorneys have defended countless lawsuits against employers for violating time card laws. A class action is merited when the time card violation affects at least two dozen employees. The statute of limitations in California goes back four years in wage and hour class actions.
Procedures
1. Introduction to Timekeeping
On their first day, employees will be informed whether they should record their work time through a time clock, time card, or another method. Regardless of the chosen method, employees are expected to adhere to established procedures for maintaining an accurate record of their worked hours.
Unless otherwise communicated, employees must diligently record their work hours using a timecard, an electronic time-keeping system, or a handwritten record. Accurate timekeeping is crucial to ensure compliance with applicable laws, guaranteeing proper compensation for all hours worked.
2. Definition of “Hours Worked”
The term “hours worked” under California time-card law is defined as all time an employee is under the employer’s control, encompassing any time the employee is allowed or required to work.
3. Submission and Review of Time Records
It is imperative for employees to submit their time records promptly after the pay period concludes, allowing supervisors to review the time card before processing paychecks. Employees may be requested to sign their time card and provide written confirmation of accuracy. This confirmation should affirm that the employees have been relieved of all duty, have taken all required meal periods and rest breaks, or alternatively, identify any missed breaks.
4. Prohibited Activities
Employees are strictly prohibited from engaging in off-the-clock work or manipulating any aspect of their timecard. Altering, falsifying, or concealing meal periods taken, hours worked, or work during meal periods is strictly forbidden at all times.
Any alterations or corrections to an employee’s timecard or record must be initialed by both the employee and their supervisor. Employees are never allowed to record or punch another employee’s time card.
5. Overtime and Unscheduled Hours
The responsibility to accurately document all worked hours does not exempt employees from the obligation to obtain prior approval from supervisors before engaging in overtime or working hours beyond the regular schedule. Employees working beyond their designated hours, including overtime or unscheduled hours, without prior authorization from a supervisor, may face disciplinary measures, including potential termination.
6. Seeking Clarification
For clarification on this policy or inquiries regarding time records, employees should reach out to their supervisor.
What Employers Should Do: A Guide to Employee Timekeeping
1. Choose a Precise Timekeeping System
According to employee time card laws in California, businesses must implement a precise timekeeping system. Employers can select their preferred method of timekeeping, such as time clocks, time cards, or badge readers, as long as the chosen method is comprehensive and accurate. While it is best practice to track employees’ time down to the minute, the federal Fair Labor Standards Act (FLSA) permits rounding employees’ hours to a maximum of 15 minutes.
It is crucial that time rounding policies are applied impartially and do not consistently favor the company or lead to the omission of actual worked hours. For example, if rounding to the nearest 15 minutes, employers may round down employee time from one to seven minutes but must round up time from eight to fourteen minutes.
Note: Some states impose additional restrictions on time rounding. For instance, the California Supreme Court recently ruled against using rounding practices in tracking compliance with state requirements for meal periods. Before implementing a time rounding policy, review all applicable employee time card laws and seek legal counsel if necessary.
2. Train Employees on Timekeeping Procedures
On their first day, employees should be informed whether they should record their work time through a time clock, time card, or another method. Regardless of the chosen method, employees are expected to adhere to established procedures for maintaining an accurate record of their worked hours.
3. Ensure Accurate Timecard Records
Any alterations or corrections to an employee’s timecard or record must be initialed by both the employee and their supervisor. Under no circumstances are employees allowed to punch or record another employee’s time card. Enforce the practice of employees verifying their hours worked. At the end of each pay period, require employees to review their time records and confirm their accuracy. This helps identify and correct errors before payroll processing and establishes documentation confirming the employee’s acknowledgment of the time records’ accuracy.
4. Document All Worked Hours
Mandate employees to document all worked hours, including time spent utilizing technology outside the conventional workplace. Activities such as responding to work emails or checking phone messages outside of regular hours are considered compensable work time under employee time card laws in California.
Ensure that non-exempt employees are aware of their obligation to report all time spent working, including instances of checking work email beyond regular hours. If the regular timekeeping system cannot be used for after-hours work, provide clear instructions on how employees can promptly and accurately report these hours.
5. Record Nonproductive Time
In addition to documenting worked hours, record nonproductive time that necessitates compensation. The Fair Labor Standards Act (FLSA) and employee time card laws require employers to compensate employees for certain nonproductive activities, such as training or business-related travel. Employers should familiarize themselves with relevant laws concerning compensable nonproductive time and guide employees on how to document it appropriately.
6. Acknowledge Rest Breaks as Work Time
Brief rest breaks, typically lasting 20 minutes or less, are generally considered paid working time under employee time card laws in California. The U.S. Department of Labor defines rest breaks as any period during which an employee is allowed to be away from work, regardless of the reason (e.g., a cigarette, coffee, snack, or personal phone call).
Note: Employers are mandated to provide reasonable break time for non-exempt employees to express breast milk for up to one year after the child’s birth. Although California laws do not require compensation for these breaks, if compensated breaks are already provided, employees using this time to express milk should receive similar compensation. Employers must also account for state and local jurisdictions that may require paid breaks for nursing employees, irrespective of other policies.
7. Enforce Overtime Authorization Policies
Employees must obtain prior approval from their supervisor before engaging in overtime or working hours beyond the regular schedule. While employers are responsible for accurately documenting all worked hours, unauthorized overtime or additional unscheduled hours may result in disciplinary measures, including possible termination.
8. Promote Accountability and Compliance
Employers should emphasize the importance of verifying the accuracy of hours worked. By requiring employees to review and confirm their time records at the conclusion of each pay period, employers reduce payroll errors and enhance compliance with timekeeping regulations. Additionally, this practice helps document the employee’s acknowledgment of their time records, further supporting compliance efforts.
What Employers Should Not Do
In adherence to legal responsibilities for maintaining a precise time card and guaranteeing proper compensation for employees’ labor, companies must mandate that all nonexempt staff accurately document their working hours each day. Employers violating California time card laws by altering or incorrectly recording employee hours could lead to a class action lawsuit. Our California employer class action defense attorneys have defended countless lawsuits against employers for violating time card laws. A class action is merited when the time card violation affects at least two dozen employees. The statute of limitations in California goes back four years in wage and hour class actions.
What Employers Should Not Do
- DO NOT implement pay withholding procedures in cases where employees neglect to submit, sign, or confirm their timecard. Employers should instead prompt employees and their supervisors to promptly furnish or confirm the hours worked to ensure appropriate payment.
- DO NOT prohibit employees from engaging in off-the-clock work. Employers must ensure that all work performed is properly recorded and compensated, even if unauthorized or unscheduled.
- DO NOT withhold pay for “unauthorized” or “unscheduled” work. Compensation is required for all hours worked, provided the employer is aware or should have been aware of the work performed.
- DO NOT implement automatic deductions for meal periods. Instead, require employees to clock out and back in to ensure accurate records of meal breaks.
- DO NOT ignore interrupted meal periods. If a meal period is interrupted, the employee must be compensated or allowed to extend their break to the full 30 minutes.
- DO NOT avoid recordkeeping duties. Employers must retain time cards and payroll records for the legally mandated durations and ensure compliance with both federal and state laws.
Key Obligations Under Time Card Laws
Companies must ensure that all nonexempt employees accurately report their working hours each day. According to the Fair Labor Standards Act (FLSA) and employee time card laws, employers are obligated to remunerate employees for all hours worked on the subsequent regularly scheduled payday. This includes both reported and unreported hours if the employer is aware or should reasonably be aware of the work performed. Even if the work was unauthorized or unscheduled, employers are still required to compensate employees for all hours worked.
It is acceptable to have a policy requiring employees to obtain permission before working overtime or starting work early/leaving late. However, any violation of this policy may result in disciplinary action for the employee’s failure to secure approval in advance. Under no circumstances, may the employer withhold pay as a consequence of such violations.
Prohibition on Off-the-Clock Work
Employers are not permitted to request or allow non-exempt employees to work “off-the-clock.” If there is knowledge or a reasonable belief that work is being performed, the corresponding time must be accounted for as hours worked and compensated accordingly. Establish a clear policy explicitly forbidding off-the-clock work and implement controls to prevent its occurrence. Managers should be trained to identify potential instances of off-the-clock work and respond appropriately. For example, if a manager receives a project from an employee via email after regular work hours without reporting additional time worked, the manager should investigate further to determine whether the employee worked beyond their usual hours.
Meal Break Compliance
According to employee time card laws in California, for a meal period to remain unpaid, it generally needs to be uninterrupted and last at least 30 minutes. During this time, the employee must be fully relieved of all duties for regular meal consumption. In the event of an interruption to the meal period, the employee should either receive full compensation for the entire meal period or be permitted to extend the meal break for a full 30 minutes. Employees should promptly report any interrupted meal periods to ensure appropriate compensation.
Employers should avoid implementing automatic deductions for meal periods and instead require employees to clock out and back in. This ensures accurate compensation and accounts for missed lunch breaks or instances where employees return late. A timecard should precisely indicate that the employee took a meal period, specify the duration of the break, and accurately reflect the actual hours worked. Automatic deductions may also run afoul of state-specific recordkeeping requirements, so compliance with California laws should be verified.
Recordkeeping Obligations
Employee time card laws mandate that employers maintain time cards and other records forming the basis of wage calculations for a minimum of two years. Payroll records, detailing daily hours worked and the total hours worked per workweek, must be retained for at least three years. For federal tax purposes, timecards must be kept for a minimum of four years. Employers should also consult state law for any supplementary recordkeeping obligations.
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