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California Can employer round down twice, hours then gross

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  • California Can employer round down twice, hours then gross

    California Employer was rounding down hourly wages twice.

    Fist they would round down to nearest quarter hour then round down the gross amount.

    for example 21 hours and ten minutes gets rounded down becomes 21 hours x $23hr =$483.00 gets rounded down again to $480.00 gross on check.

  • #2
    What about your taxes?


    • #3
      On the rounding of hours issue only, assuming that we are talking about non-exempt employees only, then the rules are FLSA regulation 29 CFR 785.48. CA follows the federal rules on this issue. This is very black letter law.

      Regarding rounding gross wages, there is no federal or CA rule requiring that an hourly rate of $23/hr is used. CA would have problems with promising one rate and not paying. So I would say that CA-DLSE would probably have a problem with what you have said. Assuming that there was nothing of substance you failed to mention. HOWEVER they would also listen to what your employer had to say, which likely as not will be something different. There is a chance that this is a "read the fine print" type of situation. There are many possible legal methods to pay people as long as minimum wage and overtime rules are being followed. Hours worked is statutory (meaning that legally no one cares what the employer thinks), but the pay rate is not statutory, as long as minimum wage rules are followed.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)