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An Employer Policy of Rounding An Employee's Work Time is Lawful


Corbin v. Time Warner Entertainment-Advance/Newhouse Partnership - Ninth Circuit Court of Appeals


Facts:  Andre Corbin ("Corbin") worked for Time Warner at one of its call centers in California.  After May 4, 2010, employees were to use an online timekeeping system to keep track of their hours worked.  At the time, Time Warner had a "rounding" policy in place.  As a result, all employees (including Corbin) had their clock-ins and clock outs rounded to the nearest quarter hour.  Since the implementation of the timekeeping system, Corbin gained compensation or broke even 58% of the time.  However, based upon an agreement by both Corbin and Time Warner, as a result of the rounding policy, Corbin lost $15.02 in wages from May 5, 2010 to his resignation on June 15, 2011.  

Corbin subsequently filed a claim on the grounds that Time Warner's rounding policy deprived him of the full amount of his earned wages (specifically, overtime compensation).  The district court granted summary judgment in favor of Time Warner and Corbin subsequently appealed.

Holding:  The Court of Appeals noted that federal rounding rules allow an employer to round employees' time to the nearest five minutes, one-tenth, or quarter hour, as long as the rounding does not result (over time) in a failure to compensate employees for time worked.  California has applied the federal rounding rule to rounding claims under California law.  While Corbin had argued that any failure to pay employees for any time worked caused by the rounding rule was a violation of state and federal law, the Court of Appeals disagreed.  As the Court held, requiring rounding to be neutral for each pay period for all employees would "gut the effectiveness" of using rounding because it would require employers to "unround" time each pay period to ensure neutrality.  In doing so, the Court held this would invalidate the long approved rounding method as an acceptable form of timekeeping.

Judgment:  The Ninth Circuit Court of Appeals affirmed the lower court's granting of summary judgment in favor of Time Warner on the grounds that the employer's policy of rounding an employee's work time to the nearest quarter hour was lawful.

The Takeaway:  This was an interesting case, in so much that it was the first published opinion from the Ninth Circuit (or any federal appeals court for that matter) on the issue of rounding.  As others have noted, I think the Court got it right here with its "common sense" approach to the matter.  The facts established that the rounding policy of Time Warner was automatic and not subject to oversight or editing by any manager.  This is important to note as the Court continually turned to the fact that the purpose of the rounding rule was effective on a broad scale, given the neutral application of the rounding rule.  

Many employees would likely agree with Corbin's argument that the rounding policy had an established negative impact (based upon the facts of this case) and therefore was an unlawful practice because it withheld wages from him.  However, I think readers need look no further than the Court's reliance upon the holding that the rounding policy (of Time Warner, in this case) was neutral on its face and as applied to Corbin.  The fact that Time Warner was not consciously choosing to withhold wages from Corbin or intentionally taking steps to "doctor" the time to prevent Corbin from earning a full wage for all hours worked is what this case turned upon.  This is a matter of the Court looking at the laws in place, the neutral application of Time Warner's rounding policy, and subsequently reaching the proper conclusion that there was no violation of federal or state law.

Majority Opinion Judge:  Judge Bybee

Date:  May 2, 2016

Opinion:  https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact=8&ved=0ahUKEwi-_NeCwunMAhWDax4KHRQ_DtcQFggxMAM&url=https%3A%2F%2Fcdn.ca9.uscourts.gov%2Fdatastore%2Fopinions%2F2016%2F05%2F02%2F13-55622.pdf&usg=AFQjCNHcZl0t4HCMGGO7lzooi1jbqSjSKQ&sig2=7bYU0CZS-r6Jp2cNgZ9rVQ&bvm=bv.122676328,d.dmo

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