Employers are often faced with the difficult dilemma of whether, and how much, it has to pay its employees who take rest breaks under the federal Fair Labor Standards Act (“FLSA”) and corresponding state laws. On Friday, October 13, the Third Circuit Court of Appeals (covering Pennsylvania, New Jersey, Delaware and the Virgin Islands) provided a rare bright-line determination. Relying on the federal rest break regulation that interprets the FLSA, the court held that non-exempt (hourly) employees’ rest breaks during their shifts, of up to 20 minutes, are compensable for the entire time, even if the employee is completely relieved of all work-related duties during that time. Previously, there was little guidance on this issue at the federal level. In defending the case, the employer argued a variety of defenses, including that “non-working” time when employees are logged off their computers is not covered by the FLSA, that the agency’s rest break regulation should not be provided substantial deference, and that there should not be a bright-line rule. The Third Circuit forcefully shot down each argument, thereby providing clear guidance to employers: breaks taken during the continuous workday of 20 minutes or less, regardless of how characterized by policy, are compensable time (at least in the Third Circuit, but likely other jurisdictions will rely on this guidance).