Should You Pay Your Employees for Working During Lunch?

Beth Dean 09.27.22
Weekly Tip - working during lunch

Get the low down on how to handle pay correctly.

Should you pay your employees for working during lunch?

Yes. 

Easy answer! Right?

Well, no. Though the simple answer is an emphatic yes, it’s a bit more nuanced. 

The topic of lunch and compensable time can be tricky. There are many ways an employee could “accidentally” work during lunch without being paid, throwing your company out of compliance with the Department of Labor (DOL).

Lunch breaks, or the lack thereof, are scrutinized heavily by the DOL since they’re a potential source of missed pay for nonexempt employees. Many companies have an employee handbook policy that mandates lunch breaks, but sometimes that policy is ignored during busy times.

Here are 5 areas to watch out for to ensure you’re paying your employees correctly regarding lunch breaks.

 

Working during lunch – 5 areas for extra caution:

  1. Automatic meal deductions

Some companies will automatically deduct an hour from an employee’s timecard daily, assuming they will take lunch. The trouble is, sometimes employees get busy and have their lunches cut short or even cut altogether. The meal deduction should reflect the actual time taken off. 

  1. Meals at the desk

The temptation is too great to work when you’re eating at your desk. Even if you’re chowing down on a sandwich and perusing the latest online sales, if an email or work message pops up and you read or respond to it, you’re suddenly working again. Think of meals at the desk as continued work…with food.

  1. Offsite business lunches

Sometimes hourly-paid employees will clock out for a business lunch for which they should be paid, such as meeting with a client, attending an industry luncheon, or relocating a department meeting to a restaurant. Work done off property is still work. 

  1. Shop talk

Sometimes, an employee will eat in the company break room, and a manager or coworker will come in and ask questions about the status of a project or even ask the employee to take a client or vendor phone call. For a meal break to be a bona fide unpaid break, according to the Department of Labor, it must be at least 30 continuous minutes. A work-related interruption that cuts into this time turns it into a compensable short break.

  1. Forgetting to clock back in

Sometimes employees forget to clock back in after lunch. Even if the employee did not keep proper records, they still must be paid for the time worked. As a manager, if you see a suspiciously long lunch break, it would also be a good idea to reach out to the employee to ensure any working time doesn’t go unpaid.

 

What are you to do about the employee who flaunts the mandatory lunchtime policy and regularly continues working? 

First, make sure you do have a policy that’s being violated. If it’s not in writing and isn’t enforced equally to everyone, it’s not a policy. Reach out to your HR pro to make an update, then roll out the changes and get signed acknowledgments from all employees.

Second, check if this employee is exempt or nonexempt from overtime pay. If the person is exempt, you may still want to enforce your lunchbreak policy to help maintain their health and fairness among all employees.  But speaking from a compliance point of view, it‘s the nonexempt employees you’ll want to keep an especially close eye on to make sure they receive compensation for all hours worked, even if they’re supposed to be off the clock.

Third, do continue to pay them for hours worked. Employers cannot deduct unauthorized hours worked; they must be paid for that time if they worked. 

If the employee works unauthorized hours during lunch, it’s a discipline problem; not a payroll problem. Connect with your HR pro to get advisement on beginning the progressive discipline process.

Need help on more employee matters? Subscribe to our weekly tips! We’ll keep you in the know!

Nextep Weekly Tip Signup

Also on Nextep

Summer heat does not wait for paperwork. When temperatures surge past triple digits across the South and Midwest, heat safety is compromised. Your crew on the asphalt or inside an unconditioned warehouse faces real danger within minutes. OSHA updated its National Emphasis Program for heat hazards to sharpen its enforcement focus. They added 22 industries […]
Read more
Mark your calendars! New compliance rules take effect this October, and protecting your business starts with knowing what is changing. The latest updates bring major changes to state and federal employment laws, changing everything from workplace policies to payroll. Key changes include the federal repeal of OFCCP affirmative action mandates and Alabama’s ban on sexual […]
Read more
States are enacting new workplace artificial intelligence laws that focus on transparency and worker privacy. If your business uses software to score applicants or screen current employees, state laws now demand clear notices and strict record-keeping. Connecticut will require a disclosure starting in October when AI informs major employment decisions. Colorado mandates notices for job […]
Read more
When shopping for the right PEO for your business, you’ll naturally look for a few checkpoints, such as technology, employee benefit options, and customer service. But perhaps the biggest point you’ll need assurance on is their trustworthiness. That’s where ESAC accreditation comes in. The Employer Services Assurance Corporation (ESAC) is one of the Professional Employer […]
Read more
It can be tricky to determine whether to classify your employees as exempt vs nonexempt. Good thing we’re here to help.  Exempt vs. Nonexempt: Exempt means that an employee doesn’t receive overtime pay regardless of hours worked. Nonexempt means that an employee must receive overtime pay (typically at a rate of time and a half) […]
Read more
July brings a fresh wave of state and federal compliance updates. Nextep has the complete rundown to keep your business on track. Get started using these quick links: Part 1: Federal Compliance Spotlight: New EEOC National Enforcement Plan On June 4, 2026, the Equal Employment Opportunity Commission (EEOC) voted to replace its previous Strategic Enforcement […]
Read more
When a week of snow plows across the United States, it leaves a few important questions. Is travel to the workplace safe? Who absolutely needs to be there? And which employees will get paid? How do I prepare for inclement weather days? Having an inclement-weather policy answers all the questions above in advance for you […]
Read more
If your employee needs health-related time off, the Family and Medical Leave Act (FMLA) may require your company to provide it. This FMLA 101 guide will help you navigate the process. Now that we’ve covered the basics, this guide will explain the Family and Medical Leave Act (FMLA) to help you handle employees’ leave requests […]
Read more
It’s that time of the year again! To stay current with the latest federal regulations, ensure your workplace labor posters are up to date. This helps you avoid potential fines and stay compliant. Several state compliance laws have changed at the start of the new year, which may require you to update your employees’ posters. […]
Read more
For years, HR teams have asked: If an employee has a 30-minute appointment, but it takes them an hour to get there, is that drive time Family Medical Leave Act (FMLA)-protected? The Department of Labor (DOL) just gave us a definitive answer in Opinion Letter FMLA2026-2. For employers, this is both a compliance requirement and […]
Read more
In December 2025, the Occupational Safety and Health Administration (OSHA) highlighted seven specific Letters of Interpretation (LOI). Below is a summary of what this means for the employer and how these resources can be used to mitigate risk. The Big Picture: Why This Matters OSHA is signaling a shift toward a “compliance assistance” model. Rather […]
Read more
As we kick off 2026, we’d like to give you a heads-up regarding changes to Federal Unemployment taxes (FUTA) for employees in California, the Virgin Islands, and New York. Some states are subject to a “Credit Reduction,” which essentially means employers in those states pay a higher federal unemployment tax rate to cover outstanding federal […]
Read more

Download the Elevate by Nextep™ App


Download the Nextep Mobile App in Apple iOS or Google Play