Breaks and Meal Periods

lunch9568375.jpgInternal Revenue Code § 119 allows employers to deduct 100% of the value of meals provided to employees when they are for the convenience of the employer, and they are furnished on the business premises of the employer. Meals provided for “the convenience of the employer” are also excludable from the employee’s taxable income. However

Last year, the DOL announced an eye-popping $2 million Fair Labor Standards Act (FLSA) settlement with Hutco, Inc, a labor services firm, for Hutco’s miscalculation of “per diem” payments to temporary workers and contractors. The DOL found that Hutco “mischaracterized certain wages as ‘per diem’ payments and impermissibly excluded these wages when calculating overtime premiums

On May 9, 2011, the U.S. Department of Labor proudly announced its new time-tracking app for the iPhone, which Secretary of Labor Hilda Solis touted as an “invaluable” tool for the Wage & Hour Division in cases where employers failed to keep accurate records. The announcement certainly got the attention of blogging labor and employment law bloggers – see below for a few of the many posts on this. 

Ironically, the app that’s designed to allow hourly employees to keep track of their hours and pay doesn’t accurately calculate either in accordance with the Department of Labor’s regulations. Continue Reading DOL’s iPhone App Needs An Update