The Fair Labor Standards Act (FLSA) requires employers to pay workers for all hours actually worked. So, mistakes in calculating break times can sometimes lead to wage errors resulting in penalties and fines assessed by the Department of Labor (DOL).
What does the law say? It is illegal to dock hourly non-exempt employees for short breaks (typically between five and 20 minutes) and for any portion of their meal breaks that they actually worked.
Example: An employer docked hourly employees for brief rest periods and one hour for lunch breaks when only 30 minutes were taken. In the face of a DOL complaint, the employer agreed to pay $204,000 in back wages and a $39,380 fine.
When is break time not compensable? When sluggish workers extend a scheduled rest break into long ones, employers do not have to pay for the extra time taken by the employee. Per the DOL, a company must expressly and unambiguously notify employees that:
1. The authorized break may only last for a specific length of time;
2. Any extension of the break is contrary to company rules: and
3. Any extension of the break will result in disciplinary action.
What does the law say? You can restrict employees’ activities during their unpaid meal break, but they must be completely relieved of duties for it to remain unpaid.
Example: An employer required employees to remain on the company premises during lunch breaks. They had to eat in a small lunchroom, and they could not change clothes, make telephone calls or leave the building. Employees claimed that should be paid for the time because of all these restrictions. Not so, said the DOL in its opinion letter. Despite all these restrictions, the company never interrupted employees to do work during their breaks. Therefore, the breaks were unpaid time. (Caveat: DOL opinion letters are informative concerning the DOL’s position on certain topics, but they are only binding on the specific employer requesting the letter.)
