Oregon Wage Theft Attorneys

Time Keeping Apps and Software Wage Theft: Know Your Rights as an Employee

Oregon employers commit wage theft in many forms, including illegally manipulating time clock punches or even programming the time clock app to steal employees’ wages. Employers can illegally manipulate electronic timekeeping apps to steal wages from Oregon employees. This practice violates Oregon state and federal wage laws. Wage theft can result in significant penalties of up to 30 days of wages per violation.

How Electronic Time Clocks Can Steal Your Wages

Today’s electronic timekeeping systems are computer software or apps that allow employees to clock in/out via their phones, on employer point-of-sale systems, employer’s computers, with a badge or fingerprint, or even a dedicated time clock computer.  These are sophisticated programs that add a lot of convenience for the employer and employees.  With this convenience comes the added risk of wage theft through manual or programmed alterations that reduce recorded work hours without employee knowledge. Time keeping systems also have more options for altering clock in or out punches to reduce the hours recorded, including removing work time that should be paid as overtime.

Common Time Clock Tactics That Can Result in Wage Theft

With the computerization of time clock systems comes the greater opportunity for employers to manipulate time punches resulting in wage theft.  Common situations that result in wage theft include:

• Manually changing your punch-in and punch-out times
• Removing work time that would be paid as overtime wages
• Programming automatic time deductions for meal periods
• Automatically deducting for meal periods, even if not taken
• Removing early arrival time even when time is requested by supervisors

Time Clock Rounding

Time clock rounding is where the time keeping system automatically rounds the start and stop time punches to the quarter hour (also referred to as 7-minute rule).  Under federal law, time clock rounding is permitted if it doesn’t result in systematic underpayment of wages over time.  In theory, this rounding practice would result in the time being rounded both up and down with neither the employer or employee ultimately benefiting. Oregon law is unclear if rounding, even if neutral in practice, is allowed.  However, Oregon law may provide greater protection to employees than federal law.

Regardless, rounding time clock punches is illegal when the employer requires employees to always clock in/out at or before the scheduled shift.  Often this is accomplished by the employer’s attendance policy requiring employees to clock in/out based on the scheduled shift.  If employees are late in clocking in or clocking out before the end of the shift, then the employer disciplines the employee under the attendance policy.  This combination of rounding time punches and the attendance policy can result in unpaid wages and wage theft.

How Altered Time Records Create Minimum Wage Issues

Oregon law requires employers to pay minimum wage “for each hour of work time that the employee is gainfully employed.”  For employees paid at Oregon’s minimum wage rate of pay, time clock alterations that reduce the recorded work time can result in the employer not paying at least the minimum wage for all hours worked.  Courts consistently rule that when total weekly hours aren’t paid at minimum wage rates, violations exist regardless of the employee’s regular hourly rate.

Red flags that indicate potential time clock wage theft:

• Consistent small hour reductions – Your recorded time is always 5-15 minutes less than worked
• Automatic lunch deductions – Time records show meal breaks you didn’t take
• Disappearing pre-shift time – Hours worked before scheduled start time aren’t paid
• Rounded-down time – Your 8 hours and 12 minutes becomes exactly 8 hours
• Overtime avoidance patterns – Hours mysteriously reduce when approaching 40 hours in a week

Oregon Wage Theft Penalties: Small Minutes Add Up to Big Money

While individual time alterations may seem minor (2-20 minutes per week), they accumulate significantly over time.  An employee losing 15 minutes per week over 25 weeks has worked over 6 hours without pay or 12 hours in a year.  At $16 per hour for 500 employees in a 3-year period, this results in the employer saving $96,000.00 in stolen wages.

This example assumes that the employees are only entitled to regular wages.  If any of the unpaid wages are in a work week where the employee has already worked and been paid for 40 hours, then the stolen wages must be paid at the overtime rate of 1.5 times the regular rate of pay.  This significantly increases the financial impact and potential penalties.

Oregon employees can recover multiple types of damages in addition to the stolen wages. Available damages:

• Unpaid wages: All improperly withheld regular and overtime pay
• Civil penalties: Up to 30 days of wages per violation type
• Late pay penalty wages: Additional wages for final paycheck violations
• Attorney fees: Full reimbursement from the employer making legal action cost-free
• Court costs: All filing fees and litigation expenses

Frequently Asked Questions about Time Keeping Wage Theft