Recently the Washington Court of Appeals upheld a jury verdict that issued a record $229 million in damages in Bennett v. Providence Health & Services. The jury found that the employer’s payroll and meal break practices violated state wage and hour laws. For business owners, this case is a powerful reminder that wage and break compliance mistakes, no matter how minor they seem, can create serious financial and legal exposure. Understanding what went wrong in Bennett can help Washington employers protect their businesses from similar risks.
Timeclock Rounding Must Be Fair and Neutral
Washington’s Department of Labor and Industries allows rounding time entries, but only if the practice averages out fairly and does not consistently shortchange employees. In Bennett, Providence’s 15-minute rounding policy consistently benefited the employer, leading the court to find it unlawful. To stay compliant, Washington employers should regularly audit their payroll data to confirm rounding neutrality. If your system shows even a slight trend favoring the company, consider tracking time to the minute or adjusting your policy to round in favor of employees.
Washington Meal Break Requirements Demand Active Enforcement
Under Washington’s wage and hour laws, employees who work more than 10 hours in a day must receive two separate 30-minute, duty-free meal breaks. Providence’s policy automatically deducted one meal period but required employees to request the second, an approach the court ruled insufficient. Washington law expects employers to ensure these breaks are taken, not simply allowed. Business owners should clearly define meal break procedures, make it easy for employees to record both breaks, and train managers to actively support compliance rather than letting employees skip breaks to finish shifts faster.
Willful Wage Violations Can Double Your Liability
In Bennett, the court found the employer’s violations were “willful,” doubling damages under the Washington Wage Rebate Act. For small businesses, this finding highlights how crucial it is to demonstrate good-faith compliance. If payroll or break errors occur, fix them quickly, document corrective actions, and communicate openly with employees. Showing proactive intent to comply with the law can prevent penalties from escalating.
Small Payroll Errors Can Lead to Big Costs
Even seemingly minor payroll errors can add up fast. In the Bennett verdict, missed second meal breaks accounted for more than $90 million in damages, and rounding violations added another $9 million. Once willfulness penalties and interest were applied, total damages exceeded $229 million. For small businesses, even a few minutes of unpaid time per shift can snowball into devastating class-wide claims.
Proactive Compliance Protects Your Business
The best defense is prevention. Washington business owners should:
- Conduct internal audits of timekeeping and meal break practices.
- Review rounding data to ensure neutrality and accuracy.
- Update policies to clearly explain break entitlements and recording procedures.
- Create transparent systems for reporting missed breaks without fear of retaliation.
- Provide training for managers, supervisors, and HR teams on Washington wage and hour laws.
Why Wage and Hour Compliance Matters for Washington Employers
The Bennett v. Providence case should serve as a warning for all Washington employers, especially small and mid-sized businesses. Noncompliance with wage and meal break laws can lead to massive judgments, reputational harm, and employee turnover. Staying compliant with Washington’s wage and hour requirements isn’t just good legal practice, it’s a smart business strategy that protects your workforce and your bottom line.
To learn more about Washington’s Wage and Break Compliance for Small Businesses, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.