Secretary United States Department of Labor v. American Future Systems, Inc.

**Court Rules Employers Must Pay for Short Breaks** This case involved American Future Systems, Inc., a company that wasn't paying workers for short rest breaks. The U.S. Department of Labor sued the company, arguing that federal wage laws require employers to pay for all breaks of 20 minutes or less. The employer tried to avoid paying for these breaks by calling their policy "flexible time" instead of traditional break time. The court sided with the Department of Labor. The Third Circuit Court of Appeals ruled that employers must compensate workers for all rest breaks lasting 20 minutes or less, no matter what the employer calls the break policy. The court said that simply changing the name of a break policy from "rest breaks" to "flexible time" doesn't change the legal requirement to pay workers. This decision is important for workers because it protects their right to be paid for short breaks during their workday. Employers cannot use creative labeling or alternative names for break policies to avoid paying wages. If you take breaks of 20 minutes or less during work, your employer must include that time in your paycheck under federal law.