Automatic payroll deductions are allowed, but follow all rules

Q         For nonexempt, hourly employees who don’t have access to the time clock during the day (they are delivery drivers), how should we handle their meal breaks? Can we automatically deduct 30 minutes from their hours?

There has been a significant amount of litigation around the issue of automatic deductions, typically involving minimum wage and overtime obligations under the Fair Labor Standards Act (FLSA). Although you may automatically deduct the meal break time, you must inform employees beforehand, and you must have a process in place for them to notify payroll if they didn’t take the full 30-minute break so that they should be paid for some portion or all of that time.

Whether the employee simply chose not to take the full break or work interruptions kept them from being able to take the full break, time worked must be paid under the FLSA regardless of the automatic deduction.

Martin J. Regimbal is a shareholder of the Kullman Firm in Columbus, Mississippi. He may be reached at mjr@kullmanlaw.com.