Note: This is general guidance, not legal advice. Consult your employment lawyer about your specific situation.

Your warehouse employee takes a 10-minute walk to their car during lunch. Your retail manager steps in to cover an hourly shift. Your finance team distributes a quarterly bonus. These sound like everyday workplace situations but they’re also exactly where wage-and-hour violations happen. Last month, the Department of Labor issued four opinion letters that finally clarify what you’re required to pay for and what you’re not. If you got these wrong, you could be facing back pay claims. Here’s what changed.

Do Employees Get Paid for Travel During Meal Breaks?

The DOL clarified that employees generally do not have to be paid for time spent leaving the workplace during an unpaid meal break—even if it takes time to walk through a large facility or go through security.  The most important factor is whether the employee is fully relieved of their job duties. If they are not working and are free to use their time as they wish, the break can remain unpaid.

Example – An employee in a large warehouse spends 10 minutes walking to their car and 10 minutes walking back during a 30-minute lunch break. Even though this limits their personal time, the employer does not have to pay for that walking time.

However, the situation changes if the employee is expected to do work during that time.  If a supervisor asks the employee to answer calls, monitor equipment, or stay “on standby” during lunch, that time may need to be paid.

What this means for you:

• Breaks of 30 minutes or more are usually unpaid
• Employees must be fully relieved of duties
• Travel during a voluntary off-site break is not paid
• Policies should clearly state that no work is allowed during unpaid breaks

Can Exempt Employees Work Extra Hourly Shifts?

The DOL confirmed that exempt (salaried) employees can take on additional hourly work in a different role without losing their exempt status—as long as their primary job duties remain exempt.  This often happens in workplaces like healthcare or retail, where managers or specialists may step into hourly roles when extra help is needed.

Example: A salaried nurse manager primarily handles administrative duties (an exempt role). Occasionally, they pick up extra shifts providing patient care as an hourly nurse. This is allowed as long as their main role remains managerial.

The key factor is what the employee mostly does, not just what their job title says.  If the same employee starts spending most of their time on hourly work rather than managerial duties, they could lose their exempt status and become eligible for overtime pay.

What this means for you:

• The employee must still receive their full weekly salary
• The exempt role must be their primary duty in practice
• Extra hourly work can be paid separately
• Regular job duties should be reviewed to ensure compliance

When Does Pre-Shift Work Need to Be Paid?

Pre-shift time can be tricky. The DOL explained that some activities before a shift must be paid, while others do not.  If the activity is essential to the employee’s job, it counts as paid time.

Examples of paid pre-shift work –

• A healthcare worker reviewing patient assignments before starting care
• A technician gathering the tools required for their job
• Time spent donning and doffing PPE must be paid when the equipment is essential to the job and protects against workplace hazards that are central to the work being performed. For example, putting on complex or specialized protective gear required for safety is generally compensable, whereas minimal or routine items (such as standard uniforms or simple gloves) may not be.
• A worker attending a required pre-shift meeting

These tasks are considered “integral and indispensable” to the job.

On the other hand, some activities are not paid for

Examples of unpaid time:

• Waiting in line to clock in
• Arriving early but not performing any work

The DOL also warned employers about time rounding. While rounding time entries is allowed, it must be fair over time and not consistently benefit the employer. Massachusetts has a separate rounding regulation 454 CMR 27.07.

What this means for you:

• Pay employees for required work done before shifts
• Clearly communicate when work is allowed
• Avoid off-the-clock work
• Review timekeeping systems to ensure fairness

Do Bonuses Affect Overtime Pay?

The DOL addressed how bonuses impact overtime calculations. In general, when employees receive a bonus tied to their work, employers may need to recalculate overtime pay.

However, there is an important exception.

If a bonus is calculated as a percentage of total earnings (including overtime), then additional overtime pay may not be required. This is because the overtime is already built into the calculation.

Example – An employer creates a quarterly bonus pool based on company performance. Each employee’s bonus is based on their total earnings (regular pay + overtime) during that period. Since overtime is already included, no extra overtime calculation is needed.

But not all bonuses work this way.

Example: A flat $500 performance bonus that does not account for overtime earnings may require the employer to recalculate the employee’s regular rate and pay additional overtime.

What this means for you:

• Bonus structure matters for overtime compliance
• Some bonuses already include overtime in their calculation
• Others may require additional pay adjustments
• It’s a good idea to review bonus plans before finalizing them

DOL opinion letters aren’t laws, but they show how the agency will interpret the rules in similar situations, making them a practical compliance guide and evidence of a good-faith effort. However, they cover only federal law.

Reminder: Always verify state and local laws; many are stricter than federal requirements.

How AIM HR Solutions Can Help

Wage and hour compliance can be challenging, especially when employers are evaluating overtime, meal breaks, travel time, pre-shift work, bonuses, and employee classification issues. AIM HR Solutions can help employers review policies, identify potential compliance gaps, and apply practical HR best practices to everyday workplace situations.

For general HR questions, AIM members can contact the AIM HR Helpline at 1-800-470-6277 or email helpline@aimnet.org.

For additional HR support, policy review, handbook updates, and compliance guidance, contact AIM HR Solutions at info@aimhrsolutions.com or visit www.AIMHRSolutions.com.