WAREHOUSE COMPANY CITED $1.3 MILLION IN FINES AND PENALTIES DUE TO INADEQUATE NUMBER OF TIME CLOCKS

In January, Quetico, LLC, a warehouse complex responsible for labeling, tagging, and packing apparel and shoes was cited by the California Division of Labor and Standards Enforcement for $1.3 million in fines and penalties. The state charges allege that Quetico failed to pay overtime and provide appropriate meal periods to its employees over a three year period. The real problem in this matter appears to be the employer's failure to have enough time clocks. The allegations by the state indicate that Quetico only had three time clocks for over 800 employees, which forced employees to report early for work and cut meal periods short in order to clock in at the appropriate time.

Under California law, employees must keep accurate time of employees work and meal periods and the employer cannot interfere with employees taking their full allotted meal periods. Further, if time clocks are used to track time, they must be provided within reasonable distance to all major work areas. However, in the case of Quetico, the labor commissioner alleges that the inadequate number of time clocks forced employees to be at work (waiting in line to clock in) without getting paid and also missing their full meal periods. In addition, the time records were inaccurate because employees' time sheets reflected they were getting full meal periods when according to the allegations they were not.

While Quetico has stated it strongly disagrees with the conclusions reached by the labor commissioner, the case can still be instructive for other employers. It appears the complaints against Quetico could have been avoided had the facility simply invested in additional time clocks or other technology which would allow employees to clock in and out more quickly. It is not required by the state that employers use time clocks, only that they maintain accurate records of hours worked. With the amount of employees at Quetico, it likely would have been more efficient not to use time clocks but select other methods of recording time. However, if an employer chooses to use time clocks and is aware that employees are coming to work early and/or cutting short their meal periods in order to properly clock, there should be immediate action to ensure that employees are able to take appropriate meal periods.

Quetico has indicated it will appeal the Division of Labor and Standards Enforcement citation.