Employees who do not receive rest breaks cannot sue employers for unpaid wages
May, 2008
In an unusual turn of events, the generally pro-employee Oregon court system issued a ruling last Thursday that should prove highly beneficial to employers. The ruling precludes employees from filing wage claims against their employers as a result of missed rest breaks. This ruling is expected to have important consequences for employers with employees in Oregon, not the least of which is that employees will no longer be permitted to pursue class actions seeking to recover unpaid wages for missed rest breaks. These types of class actions have become increasingly popular amongst employees, especially in retail and food-service industries. They have been known to create a public relations nightmare for employers and are quite costly to defend.
Under Oregon law, employers are required to give their employees a ten-minute, paid rest break for every four-hours worked (or major portion thereof). The rest break must be taken as close to the middle of the four-hour work period as possible. It cannot be added to an employee's lunch break or taken at the beginning or end of an employee's shift. Employers are not permitted to make deductions from an employee's wages for the ten-minute rest breaks. In other words, if an employee is scheduled to work a four-hour shift, the employer must give the employee a ten-minute rest break near the middle of the shift and must pay the employee for all four hours rather than for three hours and fifty minutes.
In the past, employees who did not receive rest breaks have been permitted to sue their employers for unpaid wages. The Supreme Court's recent ruling makes clear, however, that employees can no longer do so. The ruling also clarifies that employers are not required to pay their employees additional wages if rest breaks are not received. Employees who work a four-hour shift are entitled to be paid for four hours of work, regardless of whether they receive a rest break or not.
Employers should not breathe a sigh of relief too quickly, however. Even though employees are no longer allowed to sue for unpaid wages when they do not receive a rest break, the Bureau of Labor and Industries (BOLI) is authorized to assess civil penalties up to $1,000 per violation against non-complying employers. BOLI may also seek criminal prosecution because violating BOLI's rest break regulations is a misdemeanor in Oregon.
For these reasons, it is critical for employers to be vigilant about requiring employees to take all required rest and meal breaks. If an employee fails or refuses to do so, employers should take appropriate disciplinary measures. Please contact Bullivant's experienced labor and employment attorneys should you have any questions or concerns regarding compliance with Oregon's rest break requirements or how the recent court ruling will affect your business.