In April 2024, a Seattle jury found Providence Health & Services, a large nonprofit hospital system, liable for widespread wage and hour violations affecting about 33,000 hourly employees in Washington. The verdict was for nearly $98 million in unpaid wages and damages.
The case, Bennett v. Providence Health & Services, filed in King County Superior Court, centered on allegations that Providence failed to provide a legally-required second meal break for employees working shifts longer than 10 hours. It is further alleged the employer used timekeeping practices that rounded employees' hours in ways that consistently favored the employer.
Employees who clocked in slightly early, stayed slightly late, or worked through unpaid meal breaks often lost that work time entirely because of rounding rules and automatic break deductions, which the jury concluded amounted to willful violations of Washington wage law and unlawful deprivation of earned wages.
The central legal issue was whether Providence's rounding and automatic break-deduction policies, especially when breaks were not actually taken, violated state wage requirements.
The verdict underscores that even seemingly minor infractions - such as shaving a few minutes from time records or failing to schedule or pay for required second meal breaks on long shifts - can accumulate into massive liability when applied to tens of thousands of workers.
Source: https://www.bamlawca.com/california-labor-laws/seattle-jury-awards-98-million-in-unpaid-wages-verdict-against-providence-health-amp-services
Commentary
In the above matter, it was state law that was the source of the loss. Many states have specific laws governing meal and rest breaks, and those laws vary widely by jurisdiction, job type, and even industry, which makes multi-state compliance a significant wage and hour risk for health organizations.
In healthcare settings, the risk is heightened because patient care demands often lead staff to work through breaks, remain on-call during meals, or have breaks interrupted, which can convert unpaid meal periods into compensable work time if employees are not fully relieved of duty.
States like Washington and California have detailed timing, duration, and "uninterrupted" requirements, and may require additional meal periods on longer shifts, making automatic deductions, rounding practices, or informal "grab a bite when you can" cultures particularly vulnerable to challenge. Local county laws may also apply.
Practical loss prevention steps for health organizations include mapping every facility's operation against state-specific break rules, rather than relying on a single national policy.
Make sure policies clearly distinguish paid short rest breaks from unpaid, duty-free meal periods. Organizations should configure scheduling and timekeeping systems to capture the reality of breaks actually taken and avoid automatic deductions where breaks are frequently missed or interrupted.
Train managers that encouraging or permitting staff to work through breaks creates compensable time, and violations of the law.
Regularly audit time records identify and correct patterns of missed or shortened breaks before they turn into class claims.
Additional Sources: https://www.dol.gov/agencies/whd/state/meal-breaks; https://www.oshaeducationcenter.com/articles/employee-lunch-breaks/
