Q: Can my employer use banker’s rounding to round my pay down by the cent even though I’m hourly?
I get paid $17.95 an hour and I get paid bi-weekly. My employer uses banker’s rounding to round my weekly pay down by 1 cent so my bi-weekly pay looks off by 1 cent.
A:
No. Any rounding must be neutral. You can file a complaint with the Labor Commissioner, since you are talking about 1 penny per pay period.
However, after you leave that job, then employer is liable for waiting time penalties of 1 day's pay for each day late up to a max of 30 days. Thus, you may consider raising the issue after you leave that employer.
1 user found this answer helpful
A:
In California, employers are required to pay employees for all hours worked and to pay the full amount of wages earned. If an employer rounds an employee's time, it must be done in a way that does not result in the employee being paid less than the actual time worked.
According to California law, if an employer chooses to use rounding to calculate an employee's hours worked, the rounding policy must be neutral and fair. This means that the rounding must be done in a manner that is mathematically consistent and unbiased, and must not result in the systematic underpayment of employees.
If an employer is using banker's rounding to round an employee's pay down by the cent, this could potentially result in the systematic underpayment of employees, which would be a violation of California wage and hour laws.
1 user found this answer helpful
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