New case holds that time clock rounding is not allowed in Oregon!

On November 29, 2022, the U.S. District Court for the federal District of Oregon issued a ruling in the case of Eisele v. Home Depot U.S.A., Inc. The case was filed as a class action alleging that Home Depot’s neutral time clock rounding practices were unlawful under Oregon law. Judge Hernández agreed, finding that Oregon’s law requiring payment for all hours worked on an individual basis means that time clock rounding (in which employers round employee time punches to the nearest 5, 10 or 15 minutes) is not permitted in Oregon.

What now?

Under this new case interpretation, Employers must pay employees based on their actual time worked (without rounding), i.e., to the minute. All employers are encouraged to promptly review and update their timekeeping and payroll practices (including instructing employees to accurately report their actual time worked) to ensure compliance and avoid potential wage and hour penalties.

For more information and advice on compliance with these laws, please contact any of the attorneys at PRH at 503-303-7240.