Labor & compliance (per location)

Where: Locations & Users → Locations → a location → Scheduling tab → Labor & compliance card.

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Last updated · Mays Team

Where: Locations & Users → Locations → a location → Scheduling tab → Labor & compliance card.

Not legal advice. The rules packs described here are our reading of public sources. Check them against the citations below for your own situation.

The three rules

  1. Everything is optional and off by default. A location that has never opened this card behaves exactly as it always has. Choosing a jurisdiction only pre-fills suggested values into the form; nothing is stored until you press Save, and nothing is enforced until a specific toggle is on.
  2. Settings are per location, not company-wide. Each location owns its own jurisdiction, break definitions and toggles. There is no organisation-level layer that locations inherit from. To roll the same settings out to several stores, use Copy to other locations… — it copies this location's saved settings onto the ones you pick, replacing theirs.
  3. A settings change never rewrites closed pay periods. Exceptions are written when a punch is clocked out (or edited by a manager); changing a toggle changes what the next clock-out records. A closed pay period, and any export already handed to payroll, stays as it was.

Jurisdiction

Value

What it does

None (default)

No rules pack. Every other toggle can still be turned on, but there are no break requirements to check against, so warnings and exceptions have nothing to report.

California

Loads the California pack (below). Reset to California defaults puts the pack's suggested values back into the form — tracking, waivers, attestation and the publish-time warning on; enforcement and the pay toggles off. It does not save.

Selecting California on a card that is still at its defaults pre-fills the suggestion; on a card you have already changed it only switches the jurisdiction. Discard puts the saved values back.

Breaks

Toggle

Off (default)

On

Track meal-break exceptions

Nothing recorded.

Every clock-out records a missed, late or short meal break as an exception on the pay period (Time Clock → a pay period → Exceptions), with its premium hour (one per workday).

Track rest-break exceptions

Nothing recorded.

Every clock-out records a missed or short rest break the same way, with its own premium hour (one per workday, separate from the meal).

Enforce breaks at the time clock

Nothing blocked, and the app and the kiosk don't label any break Required.

A custom break marked Enforced cannot be ended early: the app and the kiosk answer "You can clock back in at 1:45 PM." until its full length has passed, and it shows as Required in the break picker. Applies to every device — enforcement is the location's policy, not an app feature.

Alert managers when a break is at risk

No alerts.

The employee is pushed 15 minutes before a required break is due ("Take your 30-min meal break before 2:00 PM.") and again when it is overdue; the managers/admins on duty at the location (clocked in, or scheduled right now) are pushed when it is overdue ("Eli North's meal break is overdue (due 2:00 PM) at North."). Each alert is sent once per punch and break. The Time Clock page shows a Today: breaks at risk panel with who is due or overdue right now.

Warn at publish when a shift can't fit its breaks

The schedule's warning banner is unchanged.

Live now. Before publishing, the schedule's review before publishing banner gains a BREAK row for every shift that is missing a required meal break or whose planned break is too short — e.g. "Eli North's 9-hour shift on Tue needs a 30-min meal break before 2:00 PM (California)." The small California tag names the pack the rule came from. A native shift's planned break is its Break minutes; a mirrored 7shifts shift uses its scheduled breaks. Warnings inform — they never block publishing.

Custom breaks — named breaks (name, meal or rest, paid, length, the shift length they apply to, enforced). The app and the kiosk offer them on shifts longer than their qualifying length; a break taken as one of them is stored with its kind, so exception tracking knows which rule it satisfied. The California suggestion adds a 30-min unpaid meal break for shifts over 5 h and a 10-min paid rest break for shifts of 3.5 h or more, both not enforced.

Which break is which — a break started from an older app (before break kinds) is read as the meal when it is unpaid and as a rest break when it is paid; exception tracking classifies any break without a kind by its length and paid flag (30+ min unpaid = meal). A plain Start break at a location with no custom breaks is decided by its length when it ends: under 20 minutes it is a paid rest break (short rest breaks count as hours worked under federal law), 20 minutes or more an unpaid meal break.

Advanced

Toggle

Off (default)

On

Meal-break waivers

Waivers on file are ignored.

The Meal break 1 / Meal break 2 waiver boxes on an employee's profile (Locations & Users → the user → Employment) are honoured: a meal they were entitled to skip is recorded as waived, with no premium — the first meal on shifts of 6 h or less, the second on shifts of 12 h or less when the first was taken in full and on time. Every waiver change is logged on the user's Activity timeline.

Automatically dismiss waived meal breaks

A waived meal stays listed for review.

Needs waivers and attestation on. A waived meal's exception is dismissed automatically (badge Auto-dismissed on the Exceptions tab) and can be reverted per punch. Never for shifts over 12 h.

Attestation at clock-out

Nobody is asked.

Every clock-out in the app and on the kiosk asks the question below with its three answers (English, with a Spanish copy the app can show instead) — took all breaks / had the opportunity but chose not to / prevented by work. The answer is stored on the punch, shown in the punch editor and beside each exception. An app from before this feature clocks out without asking; a manager's force clock-out never asks. Leave the wording blank for the default text; the policy link is shown with the question.

Split shift

—

Two punches on one workday at the location separated by an unpaid gap of more than 60 minutes record a Split shift exception on the later punch: one premium hour at the Minimum wage set below it (pre-filled by the pack, $16.50 for California; raise it for a local ordinance).

Reporting pay

—

A punch tied to a scheduled shift that worked less than half of it records a Reporting pay exception: the hours up to half the schedule (never fewer than 2, never more than 4) minus the hours worked, at the regular rate.

Compliance fees in labor reports

The premium hours are listed; nothing is costed.

The premiums are costed into Labor Summary → Total Pay and into the pay-period export (a Compliance Fees column; the Gusto sheet's missed_break_hours carries the break premium hours): break and reporting-pay hours at each employee's regular rate for the period, split-shift hours at the minimum wage. Dismissed exceptions cost nothing.

Who sees pay: the Labor Summary tab and both pay-period exports list every employee's wage and pay, so they need the Build & manage native schedule permission — managers and admins have it by default. Someone whose role can only view the schedule doesn't see the Labor Summary tab or the Export button.

Exceptions tab (Time Clock → a pay period)

Every exception the rules produced for the period, one row each: the employee, the rule (1st meal break · 30 min, Split shift, Reporting pay), its status (Missed / Late / Short / Waived), what happened (not taken · due by 2pm, 20 min taken at 1:10pm, 120 min unpaid gap · 12pm – 2pm), the premium (1.00 h @ regular rate, 1.00 h @ $16.50 min wage), the employee's attestation, and the review actions:

  • Dismiss (with a required reason) — removes the premium from the labor totals until reverted; the row shows Dismissed by <name>.
  • Revert — undoes a dismissal, including an automatic one.
  • CSV — the same rows for payroll or an auditor.

Filters: rule, status (incl. Open / Dismissed), employee. A manager's punch edit re-evaluates the workday; rows a manager dismissed by hand are kept.

The California pack

Each rule below links to the official source it comes from.

Rule

Value

Source

First meal break

≥30 min, unpaid, for shifts of more than 5 h; must begin no later than the end of the 5th hour. Waivable by mutual consent when the shift is no more than 6 h.

Cal. Labor Code §512(a); IWC Wage Orders §11; DLSE meal-period FAQ

Second meal break

≥30 min, unpaid, for shifts of more than 10 h; must begin no later than the end of the 10th hour. Waivable when the shift is no more than 12 h and the first meal was taken.

Cal. Labor Code §512(a); DLSE meal-period FAQ

Rest breaks

10 min paid per 4 h worked or major fraction thereof: 3.5–6 h → 1, over 6 h → 2, over 10 h → 3, over 14 h → 4. None for shifts under 3.5 h. Not waivable.

IWC Wage Orders §12; DLSE rest-period FAQ

Premium

One additional hour at the regular rate of pay per workday a meal break is not provided, and one per workday for rest breaks — separately, at most one of each per day.

Cal. Labor Code §226.7(c); Ferra v. Loews (2021)

Overtime

Computed on the regular rate of pay.

Ferra v. Loews (2021); DLSE

Minimum wage

$16.50/h statewide (from 1 Jan 2025); local ordinances can be higher — set the location's own figure on the card.

Cal. Labor Code §1182.12; DIR minimum-wage FAQ

Split shift

One hour at the minimum wage per workday with an unpaid, non-working gap of more than an hour between work periods. The offset the DLSE allows when the day's wages already exceed the minimum by the premium is deliberately not applied — the report shows the hour and payroll decides.

IWC Wage Orders §4(C); DLSE split-shift FAQ

Reporting-time pay

Reported for a scheduled shift and given less than half of it → paid for half the scheduled hours, never fewer than 2 nor more than 4, at the regular rate.

IWC Wage Orders §5(A); DLSE reporting-time FAQ

Sources: <https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=512>, <https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=LAB&sectionNum=226.7>, <https://www.dir.ca.gov/iwc/wageorderindustries.htm>, <https://www.dir.ca.gov/dlse/faq_mealperiods.htm>, <https://www.dir.ca.gov/dlse/faq_restperiods.htm>.

How the deadline is read: "no later than the end of the 5th hour" includes the 5-hour mark itself — a meal break that begins exactly 5:00 into the shift is on time; 5:01 is late.

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