Field service companies often face unique challenges in ensuring compliance with labor laws. One area where violations can be particularly costly is meal periods. California Labor Code mandates that non-exempt employees receive a 30-minute uninterrupted meal break for every five hours worked. Failure to provide these breaks can result in significant penalties under the Private Attorney General Act (PAGA).
Calculating Potential Penalties
Let’s consider a hypothetical scenario: a field service company with 5 employees, each experiencing 1 meal period violation per month, paid bi-weekly, over 4 years.
- Number of employees: 5
- Violations per employee per month: 1
- Pay periods per month: 2 (assuming bi-weekly pay)
- Total violations per month: 5 employees * 1 violation/employee/month * 2 pay periods/month = 10 violations/month
- Total violations over 4 years: 10 violations/month * 12 months/year * 4 years = 480 violations
According to California Labor Code, the default civil penalty for a meal period violation is $100 per aggrieved employee per pay period for an initial violation and $200 per pay period for each subsequent violation.
- 480 total violations
- 5 first offense penalties *$100/violation = $500
- 475 additional penalties * $200/violation = $95,000
Total penalty: $95,500
Additional Considerations:
- Attorney fees: If a PAGA lawsuit is successful, the company may be responsible for the plaintiff’s attorney fees, which can significantly increase the total cost.
- Class-action status: If the lawsuit is certified as a class-action, the number of affected employees can increase dramatically, leading to even higher penalties.
- Remedial penalties: In addition to civil penalties, the company may be required to pay remedial penalties to affected employees to compensate for lost wages and other damages.
Preventing Meal Period Violations
To avoid costly PAGA lawsuits, field service companies should:
- Implement clear policies and procedures: Develop written policies that outline meal period requirements and procedures for documenting compliance.
- Train employees and managers: Educate employees and managers about meal period laws and the consequences of non-compliance.
- Monitor compliance: Regularly review employee time records and payroll data to ensure that meal breaks are being provided.
- Address issues promptly: Investigate and correct any meal period violations as soon as they are identified.
By taking proactive steps to prevent meal period violations, field service companies can protect their bottom line and maintain a positive reputation.
How does AutoOps help?
- Automated active meal period monitoring: while technicians are actively on jobs, the system checks every 10 minutes for potential problems, and alerts the employee to remedy.
- Payroll Compliance guard: A technician missed a meal period? With AutoOps payroll module, we identify and apply the correct penalty to keep your company compliant.
- Shift termination/replacement alerts: during the work day your office staff will be notified of field technicians which may need to be “subbed out” on the job site. Our system alerts users to have ample time to find a replacement worker, keeping your jobs moving forward.