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Saturday, May 2, 2026

Medical Center's Automatic Lunch Break Deductions Violated FLSA ... - Thomson Reuters Tax & Accounting

An investigation that determined an employer’s automatic 30-minute meal deductions violated federal overtime and recordkeeping law is a reminder to employers about the importance of accounting for all hours worked.

Federal minimum wage and overtime requirements.

The federal Fair Labor Standards Act (FLSA) requires that employees must receive at least the minimum wage and may not be employed for more than 40 hours in a week without receiving at least one and one-half times their regular rates of pay for the overtime hours (Fact Sheet #22: Hours Worked Under the Fair Labor Standards Act). See Payroll Guide ¶18,350 for more on FLSA overtime requirements.

Hours worked and work time.

The amount employees should receive cannot be determined without knowing the number of hours worked. Work not requested but suffered or permitted to be performed is work time that must be paid for by the employer. See Payroll Guide ¶18,280et seq. for more information on hours worked and working time.

Rest periods.

Rest periods of short duration, usually 20 minutes or less, are customarily paid for as working time. These short periods must be counted as hours worked. See Payroll Guide ¶18,290 for more information on meal and rest periods.

Unpaid breaks if completely relieved from duty.

However, bona fide meal periods (typically 30 minutes or more) generally need not be compensated as work time. The employee must be completely relieved from duty for the purpose of eating regular meals. The employee...



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