Retailer Home Depot is making a nationwide change to the way it pays hourly workers.
“As laws, technology and workplace practices continue to evolve, effective January 16, 2023, we are changing our practice across the country to pay employees by the hour to the minute based on exact timestamps,” a Home spokesperson confirmed. Deposit to FOX Business.
The new policy marks a switch from current practice, which the spokesperson said “has been to round up or down total shift time to the nearest 15 minutes.” According to the spokesperson, this has been “common practice in the industry for years”.
The move was first reported by Business Insider on Wednesday.
The practice of rounding is allowed in the Fair Labor Standards Act (FLSA), with the law noting that some industries tend to round to “the nearest 5 minutes, or to the nearest one-tenth or quarter-hour”. It should be “used in such a way that over time it will not result in employees not being properly compensated for all the time they actually worked,” it says.
A few workers made compensation allegations related to Home Depot’s rounding practices in past lawsuits, Business Insider also reported.
Home Depot had more than 2,300 stores and about 500,000 employees at the end of October, the company said recently.
In November, the company said third-quarter net sales were up 5.6% over the same period last year, to $38.87 billion. Net income was $4.34 billion, up 5.1% from $4.13 billion in the third quarter of last year.
Turning to its fiscal 2022 outlook, Home Depot said it expects “comparable sales growth of approximately 3.0 percent” and “diluted mid-single-digit earnings-per-share percent growth,” according to the earnings release.
Shares of the home improvement retailer traded at just over $330 Thursday afternoon.