Home Depot quickly changed the way it pays hourly workers

Home improvement retailer The Home Depot is making a nationwide change to the way it pays hourly employees.

“As laws, technology and workplace practices continue to evolve, we are changing our practices nationwide effective January 16, 2023, to pay hourly associates to the nearest minute. based on the exact time,” a Home Depot spokesperson confirmed to FOX Business.

The new policy will mark a change from its current practice, which the spokesperson said “has been to round total working time up or down to the nearest 15 minutes.” It’s “a standard practice in the industry for many years,” according to the spokesperson.

The move was first reported Wednesday by Business Insider.

The practice of rounding is permitted in the Fair Labor Standards Act (FLSA), with the law noting that some industries tend to round to the “nearest 5 minutes, or nearest tenth or quarter hour”. close”. It must be “used in such a way that it will not result, over a period of time, in an inability to adequately compensate employees for all the time they have actually worked,” it says.

A few workers have made compensation claims related to Home Depot’s rounding practices in previous lawsuits, Business Insider also reported.

Home Depot previously rounded workers’ total work time to the nearest 15 minutes.
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Home Depot had more than 2,300 stores and some 500,000 workers at the end of October, the company recently announced.

In November, the company said third-quarter net sales rose 5.6% from the same period last year to $38.87 billion. Its net profit was $4.34 billion, up 5.1% from $4.13 billion in the third quarter of last year.

Regarding its guidance for fiscal year 2022, Home Depot said it expects “comparable sales growth of approximately 3.0%” and “diluted earnings per share growth at an average figure,” according to the earnings release.

The home improvement retailer’s stock was trading at just over $330 by early Thursday afternoon.

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