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Dismissal Obtained in “Rounding” Lawsuit

An employee of our client Time Warner Inc. sued in federal court in California alleging that the company violated the Fair Labor Standards Act by using the timekeeping practice known as rounding, in which time worked by employees is rounded either up or down to the nearest 15-minute mark. According to the plaintiff, the company does not fully pay employees for all the time they work. An employee who clocked in at 8:07 a.m. would have his time rounded to 8 a.m., while an employee who clocked in at 8:08 a.m. would have his time rounded to 8:15 a m. We and co-counsel moved to dismiss the case, arguing that the plaintiff failed to include any allegation that he was actually harmed by the policy or that he actually worked overtime and received less than the amount due to him. The court granted our motion. It maintained that the plaintiff’s allegations that the company had a practice of rounding were insufficient to plausibly suggest an FLSA violation, nor did the complaint contain allegations that employees were actually underpaid.

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