AHMC Healthcare, Inc. v. Superior CourtAnnotate this Case
Employees brought a class action for failure to pay wages, failure to provide meal and rest periods, failure to furnish timely and accurate wage statements, failure to pay wages to discharged employees, and unfair business practices. They were employed in hourly positions, requiring them to swipe their ID badges at the beginning and end of their shifts. They claimed their employers’ method of calculating hours violated the Labor Code because the system rounded employees’ hours up or down to the nearest quarter hour before calculating wages and issuing paychecks, rather than using the employees’ exact check-in and checkout times. An expert examined data for a four-year period. One employer’s rounding procedure added time (9,476 hours) to the pay of 49.3% of the workforce (709 employees) and left 1.2 percent of the workforce (17) unaffected; 49.5 percent of the workforce (713) lost time (8,097 hours)-- an average net reduction of 2.04 minutes per employee shift. For the other employer, the rounding procedure added time (17,464 hours) to the pay of 47.1 percent of the workforce (861 employees), and had no effect on 0.8 percent of the workforce (14); 52.1 percent of the workforce (953) lost time (13,588 hours). The court of appeal found the system neutral on its face and as applied, in compliance with California law.