On January 7, we wrote about the DOL’s Final Rule on Independent Contractor Status that was slated to take effect on March 8, 2021. Many employer and business groups applauded the Final Rule because its focus on the economic reality test was intended to make it easier for employers to classify certain workers as independent
An unpaid meal break can become a very expensive lunch for an employer, but there are ways to comply with the Fair Labor Standards Act (FLSA) to try and minimize the risk.
Identifying the Potential Problem
The problem that results from unpaid meal breaks typically arises like this:
- Nonexempt employee clocks out for lunch, or
Employers often ask, “Can this worker be an independent contractor?” The answer is often unclear due to the different tests for employee versus independent contractor status, which vary between federal circuit courts and from state to state. In the end, the answer typically depends on how much risk the employer is willing to take. In…