Though the PAGA reforms reduced some penalties, the reform did not include changes to the underlying wage and hour violations. Employers must remain up to date in their compliance with California’s stringent wage and hour requirements.  We review a few hot-button issues here: 1. Timekeeping Practices for Non-Exempt Employees Timekeeping remains a hot topic, particularly with regard to policies on rounding and de minimis claims. California law does not allow employers to use the de minimis defense for timekeeping violations, unlike federal law. This means even small violations, like missing a couple of minutes of pay, can lead to penalties. Rounding Policy: In Camp v. Home Depot, the California Court of Appeal cast doubt on an employer’s usage of neutral time rounding policies (e.g., rounding to the nearest 15 minutes) where employees’ time was tracked by a digital timekeeping system.

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