Home Depot soon changing the way it pays hourly employees

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

“As laws, technology and workplace practices proceed to evolve, we’re changing our practice nationwide effective Jan. 16, 2023, to pay hourly associates to the closest minute based on exact time punches,” a Home Depot spokesperson confirmed to FOX Business.

The brand new policy will mark a switch from its current practice, which the spokesperson said “has been to round total shift time up or right down to the closest quarter-hour.” That “has been a typical industry practice for a few years,” based on the spokesperson.

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Home Depot store in West Berlin, N.J. with rental trucks parked outside, Dec 25, 2022.

The move was first reported Wednesday by Business Insider.

The practice of rounding is permitted within the Fair Labor Standards Act (FLSA), with the law noting some industries are likely to round to the “nearest 5 minutes, or to the closest one-tenth or quarter of an hour.” It have to be “utilized in such a fashion that it can not result, over a time period, in failure to compensate the workers properly for on a regular basis they’ve actually worked,” it says.

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A number of employees made allegations about compensation in connection to Home Depot’s rounding practices in past lawsuits, Business Insider also reported.

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A customer heads into a Home Depot store in San Rafael, California on August 16, 2022.

Shares of retailer Home Depot jumped early last week after posting better-than-expected profits.

Ralph Polk (L) and Fred James work in the paint department at a Home Depot store Feb. 21, 2006 in Chicago, Illinois.

Ralph Polk (L) and Fred James work within the paint department at a Home Depot store Feb. 21, 2006 in Chicago, Illinois.

Home Depot had over 2,300 stores and a few 500,000 employees as of the tip of October, the corporate said a pair months ago.

In November, the corporate said its third-quarter net sales increased 5.6% from the identical period last 12 months, coming in at $38.87 billion. Its net earnings were $4.34 billion, up 5.1% in comparison with $4.13 billion in last 12 months’s third quarter.

As for its fiscal 2022 guidance, Home Depot said it expected “comparable sales growth of roughly 3.0 percent” and “diluted earnings-per-share-percent-growth to be mid-single digits,” based on the earnings release.

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

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