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Recent $515,000 Settlement Highlights the Cost of Improper Timekeeping Practices

Scott R. Leah, Esq., sleah@tuckerlaw.com, (412) 594-5551

A settlement approved last week shows that even a large corporation can make a mistake in how it pays employees, costing it money in the long run.

The plaintiffs in that case claimed that Mitsubishi Electric Automotive America paid them based on when their shifts were scheduled to start or end, regardless of when the employees actually started or ended work. That is improper, as employers must pay employees for all time worked, not just for the time they were scheduled to work. As a result, Mitsubishi has agreed to pay the plaintiffs $515,000.

This case shows why it is critical for employers to be aware of the actual hours being worked by its employees. If an employee gets to work 15 minutes early and starts working, they are on the clock even if they don’t actually clock in until their shift is/was scheduled to begin. They must be paid for actual time worked, not time scheduled to be worked or even the time that they report working. It is actual time that must be compensated. Moreover, if that extra time puts them over 40 hours for the week, then they will be entitled to some overtime compensation as well.

Employers, therefore, need to have good timekeeping and overtime policies in place. Employees need to understand (a) when they may start or must stop working, (b) the importance of keeping accurate time records, and (c) the ramifications if they violate those policies.

If you have questions about wage and hour compliance or need assistance reviewing your timekeeping and overtime policies, contact Scott Leah at (412) 594-5551 or sleah@tuckerlaw.com.

October 29, 2025

Scott R. Leah

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Recent $515,000 Settlement Highlights the Cost of Improper Timekeeping Practices

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