Clocked In Workers Should Not Leave Premises: Employer Liability for Accidents on Paid Breaks

If an employee leaves the employer's premises on a paid break, is the company liable if they are in an accident?  

Short answer: Possibly. The employer could be considered liable unless they take preventive steps to mitigate their risk. 

Do Employers Have to Provide Paid Breaks? 

No, as an employer, you are not required to provide a paid break to adult employees under the FLSA. (Please note that minors must have a 30-minute lunch within the first five hours of work and cannot work more than three consecutive hours without a 10-minute break). However, several states do have regulations regarding meals and other breaks.  

If your state does not have regulations pertaining to breaks, you fall under federal law jurisdiction. 

When an employee is injured during their break, the employer could be held liable. To mitigate this risk, employers should establish a comprehensive break policy (see details below). This policy should clearly outline the expectations for employees during breaks, including where breaks can be taken and what activities are permissible.  

Ensuring that employees are aware of their responsibilities during breaks can significantly reduce the likelihood of accidents and subsequent liability. 

Can employers choose to provide breaks, despite no federal law requiring them? 

Yes! Even without a federal or state mandate, many employers choose to offer breaks for a number of reasons. 

In jobs involving manual labor, work in harsh environments or conditions (hot or cold weather), or even high-stress roles, encouraging workers to take a breather can be essential for keeping workers safe and elevating productivity. In some physically tasking roles, breaks may also help prevent costly injuries. When short rest period breaks of 5-20 minutes are offered, the FLSA does consider that time to be compensable. 

Providing time for regular meals is essential to comply with state regulations and ensure employee well-being. Keep in mind, however, that when a business offers a break, they are under the same liability requirements as businesses mandated by state law to do so and should take action to mitigate potential risks. 

Fair Labor Standards Act (FLSA) and Break Requirements 

While the FLSA does not mandate employers to provide adult employees with regular breaks, when employees take short breaks of 5-20 minutes to use the restroom, eat a snack, etc., the federal law considers this time as a rest period and is compensable, as both the employee and the employer benefit from the rest. In other words, employers must pay employees for this time even though they are temporarily relieved from duty. 

Meal breaks, on the other hand, are usually 30 minutes or longer and are considered bona fide meal periods if the employee is completely relieved from duty. During these breaks, employees are not required to be paid, provided they are not performing any work-related tasks. Employers must ensure that these breaks are reasonable and that employees are fully aware of their rights and responsibilities during these times. 

Why Clocked In Workers Should Not Leave Premises 

In 1985, a Florida case (Holly Hill Fruit Products v. Krider) involved an employee who left work to purchase cigarettes from the store across the street. He was still on the clock when crossing the road and was hit by a car when coming back.  

When he was denied medical and temporary disability benefits, the employee took the case to court. 

Circumstances and Outcome of Holly Hill Fruit Products v. Krider Case 

The court discovered that other employees of Holly Hill Fruit frequently went to this same convenience store to purchase food, drinks, and cigarettes during working hours because they were more affordable than the employer's on-site snack bar.  

While Holly Hill’s plant superintendent explained that off-premises trips were discouraged and that employees were supposed to clock out before leaving the premises, nobody had been disciplined for not doing so. In fact, the court found no proof that this company policy had ever been communicated or enforced. 

Ultimately, the court sided with the worker because he was injured during a refreshment break and what he was doing was not in violation of any company rule. The refreshment break was deemed to be in line with a compensable rest period and the accident therefore was held to be arising and occurring within the course of employment. The fact that the employee was attending to a personal matter was irrelevant.   

Work-Related Activities During Paid Breaks 

While employees are not required to perform work-related activities during paid breaks, some may choose to do so. If an employee engages in work-related tasks during a paid break or is considered to be working on-call time while on company premises, the employer is obligated to compensate them for that time. 

Three Steps to Reduce Risk of Liability When Employees Leave Company Premises 

To mitigate the risk of employees getting injured while on break, your company should implement the following: 

1. Create a written company break policy

Developing a robust break policy is crucial to minimizing liability. The policy should detail the length and frequency of rest periods and meal breaks, as well as the responsibilities of employees during these times. It should also address the potential consequences of failing to adhere to the policy, such as disciplinary action or accusations of time theft. 

For example: 

• Employees are prohibited from leaving company premises during paid breaks; 
• Employees who leave company premises for any reason must first clock-out; 
• Employees must be completely relieved of their duties during meal breaks to allow for eating regular meals without interruption;  
• Exceptions to this policy must be in writing; and 
• Any infraction will be subject to disciplinary action, up to and including termination. 

2. Require employees to sign a document confirming they have read and agree to the company policy

Provide employees with a document confirming that they have read and understood the break policy. This document should be part of the onboarding process and revisited regularly to ensure ongoing compliance. By clearly outlining the expectations and potential repercussions, you can foster a safer and more productive work environment. 

3. Enforce the company policy with disciplinary action

For your company policy to be upheld in court, enforcement needs to be consistent, regardless of when, why, or who violates the policy.

Should Your Business Offer Employee Breaks? 

Choosing whether or not to offer breaks is up to you; however, consulting with your certified HR expert is always a good idea.  

My advice is this: create a policy that allows your workers to have the rest they need but also keeps your workplace safe from liability. Be sure to include the policy in your employee manual and communicate it regularly.  

At Stratus HR, our team can help with writing your policy, ensure employee acknowledgment, and answer any questions you have about managing employees and more. Do not leave your business exposed; book a free consultation with one of our HR experts today!