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Has Rounding Overstayed its Welcome in California? | McDermott Will & Emery
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California s Supreme Court Rejects Employer Use of Time-Rounding Policies in the Meal Period Context | Wilson Sonsini Goodrich & Rosati
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In
Donohue v. AMN Services, LLC, the California Supreme Court held that where employees’ time records reflect a missed, late or short meal break, a “rebuttable presumption” arises that a proper meal break was not provided. This decision significantly alters the burden of proof on meal break claims, and will make it easier for plaintiffs to obtain class certification and prove liability.
The Court gave guidance about how employers can rebut the presumption, including by incorporating a dropdown menu in timekeeping systems that require employees to give the reason for a noncompliant break.
The Court also held that employers may not use rounded time to determine if a meal break was short or late.
Highlights:
An otherwise facially neutral policy of rounding meal period start and end times are noncompliant with California meal period laws where the policy sometimes resulted in underpayment of meal period premiums.
Where records show noncompliant meal periods on their face, a rebuttable presumption of noncompliance arises.
Employers should consider implementing a system, such as a drop-down menu, whereby the employee’s choice to forego a provided meal period is documented.
On 25 February 2021, the California Supreme Court provided a long-awaited answer to the questions of whether California employers can legally round meal breaks and whether records showing potential noncompliance with meal period requirements create a presumption of noncompliance. Now, more so than ever, California employers should ensure that their timekeeping and meal break policies, practices, and increasingly important technology are up to date and compliant with the current demands of the law.
California Supreme Court Strikes Down Meal Break Rounding
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