While there is no federal law on work breaks, many states have laws that apply to rest periods. Generally, the laws mandate a paid or unpaid break for a minimum number of hours worked. Thousands of employers violate these laws every year.
In many cases, the employer assumes employees are “cool” with a lax policy. However, when challenges arise, the employer will always be the one to be penalized if records aren’t in order.
Case Studies
A San Diego company agreed to pay $35,000 to settle a lawsuit over meal breaks. The court found the company automatically deducted 30 minutes from employees’ time worked regardless of whether the employee took a break. The employer had to pay 30 minutes’ back pay plus penalties for each day an employee was improperly docked time.
https://hrdailyadvisor.blr.com/2004/03/01/meal-and-rest-periods-employers-settle-lawsuits-claimi
In April 2019, a jury awarded a class of 5,000 California-based Walmart fulfillment center employees over $6 million in damages for multiple violations including missed meal breaks which are required in California. The court found the company failed to pay for all hours worked, pay overtime, provide meal periods, provide rest breaks, pay final wages, and provide accurate itemized wage statements.
The Solution: Automated Time and Attendance
Don’t let rest periods cause compliance problems. Each of the items listed above can be solved with a fully automated time and attendance solution. With this solution in place, you can rest assured that you have your bases covered when it comes to break and mealtime compliance.
Protect yourself with:
- Time clock prompts for unpaid breaks
- Manager alerts for missed break punch-outs
- Real-time manager oversight of mobile employees on break
- Automated recordkeeping of shift punches including rest periods
Call 941 Payroll today at (877) 941-9419.
