Automatically deducting meal or break periods from employee time can streamline payroll, but failing to track when employees actually work through those breaks can lead to costly compliance issues.
A recent case highlights the risks: A healthcare system agreed to pay $1.9 million in back wages and damages after failing to compensate employees who worked through their breaks—especially during the pandemic, when emergency personnel were unable to step away due to increased patient needs. The Department of Labor (DOL) found that the employer should have known that these employees were working through breaks and failed to take appropriate action.
To avoid similar legal and financial consequences, employers should:
✔ Implement a clear policy requiring employees to confirm break times.
✔ Use an accurate timekeeping system that allows employees to report when they work through breaks.
✔ Train managers to recognize and address unpaid work time.
✔ Regularly audit payroll records to ensure compliance.
Ignoring this issue can lead to hefty fines and forced policy changes. Stay compliant by proactively managing break deductions and ensuring employees are fairly compensated.
✴️Need help with timekeeping and payroll compliance? CTR Payroll | HR can help! Contact us today!
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