Timekeeping in California: Is Your Clock Ticking Toward a Wage Claim?
Accurate timekeeping is more than good practice—it’s a legal necessity in California. If you rely on outdated systems or manual processes, you could be underpaying employees and overexposing your business.
1. Rounding Time Up or Down
The new law covers most employers with one or more employees in California, even if you operate in a small office or low-risk setting. There are very few exceptions.
2. Missing Meal and Rest Period Tracking
California labor law favors the employee. Rounding practices—especially if always in favor of the employer—can be challenged and may result in back pay liability.
3. Auto-Deductions Without Verification
Automatically deducting 30 minutes for lunch regardless of whether it was taken is a common mistake. You need clear records that match what actually happened.
4. Relying on Inconsistent Manual Systems
Pen-and-paper logs, outdated Excel sheets, or loosely monitored apps can result in underpayment, overpayment, or disputes. Modern, compliant systems are essential.
5. Not Reviewing Timesheets Before Payroll
Payroll and timekeeping must align. Errors in rounding, incorrect job codes, or missed approvals can snowball into wage claims.
Want a Timekeeping Health Check?
We’ll help you identify vulnerabilities in your system and recommend practical, compliant solutions. Book a wage & hour audit with DP Human Capital Management today.
Schedule a timekeeping audit today.