If employees aren’t aware that break times are automatically deducted, they may clock out for break in addition to the automatic deduction.Why an employer shouldn’t automatically deduct lunch timeĪlthough automatic lunch deductions are a convenient way to track breaks, it’s not always the best idea. If the employee is required to perform work duties, it does not count as a break. Break time only counts when the employee is relieved from all work duties.Therefore, you do not need to compensate the hours and minutes spent on break. Bona fida break periods (30 minutes or more) generally do not count as hours worked.Small break periods like these are typically paid and count as hours worked. Rest periods are usually 20 minutes or less.Although they don’t require break time, they still have certain guidelines that you must follow: If you end up giving your employees break and meal times, you do have to follow FLSA regulations. When creating your meal or break time policy, keep your state’s laws in mind. States have varying laws, so you’ll want to check to see what rules your business has to follow. Meanwhile in Montana, they do not have any laws requiring an employer to provide a meal period or breaks to employees, so the federal rule applies. For instance, California labor laws require that employers provide employees with a meal period of no less than a 30-minute when they work more than five (5) consecutive hours. State laws and lunchtime deduction policyĪlthough the federal government doesn’t require any meal or break periods, state governments have their own break laws. This means that an employer must track all hours worked as well as any work performed during lunch (if applicable). The federal government actually doesn’t have any rules when it comes to break times they only want employers to track employee’s hours accurately. That is, of course, if the employee actually takes lunch. Yes! According to the Department of Labor ( DOL) and the Fair Labor Standards Act ( FLSA), it is legal for employers to automatically deduct lunch time. This is great for employers who want to avoid overpaying employees, but many people still have questions about the legality of lunch deductions. This ensures that employees get lunch breaks deducted, no matter the circumstance. In order to keep timestamps more accurate, some employers choose to implement automatic lunch deductions for hourly employees. You will end up either overpaying employees or underpaying employees, which can lead to issues down the line. This leads to inaccurate timestamps and, even worse, inaccurate payroll. Some employees forget to clock out, adding minutes to their paychecks daily, while others forget to clock back into work once they return. Lunchtime can be a tricky thing to track.
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