If you make employees show up early, you might have to pay them to wait

Your plant's first shift starts at 6:00 a.m. But you tell everyone to be at the door by 5:45, ready to work.

Most mornings, the supervisor unlocks the building on time. About once a week, he doesn't. The time clock is inside. So employees stand in the parking lot for fifteen minutes, unpaid.

Do you owe them for that time?

According to the 2nd Circuit, quite possibly.

In Santos v. Lidl US, a grocery clerk alleged that Lidl required her to report fifteen minutes before her 5:00 a.m. shift. But managers weren't always there to unlock the store. She couldn't clock in until someone let her in. About once a week, she lost fifteen minutes of pay, sometimes at overtime rates.

The district court dismissed her claim under the Portal-to-Portal Act, which generally excludes preliminary activities from compensable working time.

The 2nd Circuit reversed because there's a difference between "waiting to be engaged" and being "engaged to wait."

If an employee voluntarily shows up early, that waiting generally isn't compensable. But if you require an employee to report ready to work, and something beyond their control prevents work from starting, that waiting time is compensable.

Lidl argued that Supreme Court precedent foreclosed that conclusion and that the rule applied only to on-call workers, like firefighters. The court rejected both arguments.

It also refused to dismiss fifteen minutes a week as de minimis. Small doesn't automatically mean insignificant, particularly when the time is recurring and trackable.

Judge Sullivan dissented, reasoning that the waiting wasn't integral to Santos's job and that she could have arrived at her scheduled start time.

This wasn't a final judgment. Santos still must prove her allegations. But her FLSA collective action and New York wage claims are back in play.

So what should employers do?

1. Look at what you require. "Be here fifteen minutes early" isn't a suggestion. If employees must report ready to work but can't start because of something you control, that waiting time may be compensable.

2. Fix the access problem. Install an outside time clock, enable mobile clocking, or ensure someone with a key arrives on time. And pay employees for compensable time even if they can't clock in.

3. Don't dismiss small amounts of time. Fifteen minutes a week sounds trivial. Multiply it across employees, weeks, and overtime rates, and it adds up.

If you don't need employees there fifteen minutes early, don't require it.

You don't get to control when employees show up, keep them waiting, and then pretend their time doesn't count just because the door is locked.