Home Depot retailer is rolling out a nationwide change to how hourly workers are compensated.
“As laws, technology, and workplace practices proceed to evolve, we’re changing our practice nationwide effective January 16, 2023 to pay employees hourly, minute-by-minute wages based on accurate time beats,” a Home Depot spokesperson confirmed to FOX. Business.
The brand new policy marks a departure from the current practice, which a spokesperson said “rounds the total shift time up or down to the nearest quarter-hour”. According to a spokesperson, “this has been common practice in the industry for a few years.”
There was traffic first reported Wednesday by Business Insider.
The practice of rounding is allowed in Art Fair Labor Standards Act (FLSA), with the law noting that some industries tend to round to “the nearest 5 minutes or to the nearest tenth or quarter of an hour.” It should be “utilized in such a way that it doesn’t lead to workers not being adequately compensated for all the time actually worked over a time frame,” he says.
As reported by Business Insider, several employees have filed compensation allegations related to Home Depot’s rounding practices in previous lawsuits.
![Ralph Polk (left) and Fred James work in the paint department at Home Depot, February 21, 2006 in Chicago.](https://nypost.com/wp-content/uploads/sites/2/2023/01/GettyImages-56899039.jpg?w=1024)
As of late October, Home Depot had greater than 2,300 stores and roughly 500,000 employees.
In November, the company said its third-quarter net sales were up 5.6% from the same period last 12 months to $38.87 billion. Its net income was $4.34 billion, up 5.1% from $4.13 billion in the third quarter last 12 months.
Regarding guidance for fiscal 12 months 2022, Home Depot said it expects “comparable sales growth of roughly 3.0 percent” and “diluted earnings per share percentage growth that can average in the single digits,” according to an earnings announcement.
The homeware retailer’s stock traded at just over $330 early Thursday afternoon.