A federal judge has granted preliminary approval to a $75,000 settlement resolving claims that Onslow Memorial Hospital in North Carolina unlawfully deducted meal breaks from nurses' pay, resulting in lost overtime compensation under the Fair Labor Standards Act and the North Carolina Wage and Hour Act.

U.S. District Judge Terrence W. Boyle approved an initial settlement agreement between nurse Denia Wilburn and the hospital, finding the proposed terms within the range for possible final approval. The ruling conditionally certifies a settlement-only collective of 32 non-exempt nurses, assistants, and technicians who worked overnight shifts in the maternal child unit between August 2023 and September 2025.

Under the proposal, $55,000 of the total settlement will be distributed among participating workers, while $15,000 is designated for attorneys' fees and litigation costs. Employees who opt in will receive one hour of pay, representing two missed meal breaks, for each two-week period worked, subject to an individual cap of $2,000.

Wilburn's lawsuit, filed in May, alleged that the hospital automatically deducted 30 minutes per shift for meal breaks even when nurses and technicians had to remain on duty or were regularly interrupted, leading to unpaid overtime and off-the-clock work in violation of federal and state wage laws.

Source: https://usaherald.com/north-carolina-hospital-gets-early-court-approval-for-75k-nurse-meal-break-settlement/

Commentary

Healthcare employers that rely on automatic meal break deductions face significant wage and hour exposure when staff work through meals, are interrupted for patient care, or lack a clear way to report missed breaks.

The Fair Labor Standards Act, a federal law, does not require employers to provide meal or rest breaks. However, when a break is offered, the Fair Labor Standards Act (FLSA) treats short rest periods (generally five to 20 minutes) as paid work time that must be included in total hours worked. Bona fide meal periods (usually 30 minutes or more) can be unpaid only if the employee is completely relieved of duties. Without following federal and state rules, employers risk unpaid overtime, inaccurate recordkeeping, and class or collective actions that can generate six- and seven-figure settlements and verdicts.

Healthcare employers should define what a bona fide meal period looks like in patient care units, train managers to ensure staff are truly relieved of duty, and prohibit off-the-clock work during meals.

Regular review of staffing levels, workload, and incident patterns can reveal units where breaks are routinely interrupted, prompting schedule or coverage changes that reduce missed meals and wage claims. By aligning scheduling, supervision, and timekeeping with federal and state requirements, healthcare employers can protect patient care while sharply reducing preventable losses tied to meal break practices.

Additional Source: https://www.dol.gov/agencies/whd/fact-sheets/53-healthcare-hours-worked