Break rules define how breaks are calculated within R365 scheduling and how break penalties are calculated. Break rules are opened from the Labor Rules page.
Use these rules to support local labor laws, internal scheduling standards, and consistent payroll calculations. Learn more about R365 Labor Rules.
Security
Users with the following permission will be able to create break rules:
Labor → Labor Rules → Break Rules → Create Break Rules
Users with the following permission will be able to edit break rules:
Labor → Labor Rules → Break Rules → Edit Break Rules
These permissions can be added to custom user roles or individual users. The Permission Access report can be used to determine which user roles or users already have these permissions assigned. For more information, see User Setup and Security.
Open a break rule
Select Admin from the left navigation rail.
Expand Workforce.
Select Labor rules.
Select the rule to open its record.
Tip:
Find the rule Type in the Type column. In this example, Break type is selected.
Change locations assigned to a break rule
Follow these steps when a location opens, closes, or moves to a different rule:
Navigate to the Name & Locations section.
Select the dropdown arrow by Locations.
Check additional locations and/or remove locations.
To add locations, select the checkbox.
To remove a location, clear the checkbox or click the X next to the location name.
Click Save.
Rename a Break Rule
Follow these steps to change the display name of a break rule:
Navigate to the Name & locations section of the rule.
Click the name field. The field becomes editable.
Type the new name.
The name must be unique among break rules. Break rules cannot share a name with each other, but a name used by another rule type (such as a "West") is allowed.
Click Save.
Configure How Breaks are Calculated in R365 Scheduling
The Scheduled Breaks section of a break rule determines how R365 accounts for break time in scheduled labor calculations. Two modes are available: Use Scheduled Breaks uses the breaks that are explicitly scheduled in R365 Scheduling, while Use Calculated Breaks calculates break time automatically when employees reach configurable hour thresholds. The two modes are mutually exclusive, select the one that matches how your organization manages breaks.
Follow these steps to configure Use Scheduled Breaks:
Navigate to the Scheduled Breaks section. Select it from the left-hand panel or scroll down to it on the page.
Select the Use Scheduled Breaks radio button.
Click Save.
Follow these steps to configure Use Calculated Breaks:
Navigate to the Scheduled Breaks section. Select it from the left-hand panel or scroll down to it on the page.
Select the Use Calculated Breaks radio button. The section expands to display tier management controls.
Click Add Tier.
Configure the following fields for the tier:
The Shift Type field is only configurable on the first tier. All tiers added after the first inherit the Shift Type from the first tier and cannot change it. Determine whether breaks apply per shift or per day before adding additional tiers.
Shift Type — Select Per Shift to trigger the deduction based on hours worked in a single shift, or Per Day to trigger it based on total hours worked across the day.
Hours Worked — Enter the hour threshold at which the break deduction applies. For example, entering 8 applies the deduction when the employee works 8 hours.
Break Minutes — Enter the number of minutes to deduct as a break when the threshold is met.
Click Save.
To add additional break thresholds, click Add Tier again, then configure Hours Worked and Break Minutes for each new tier.
Shift Type is set by the first tier and applies to all tiers.
To remove a tier, click the trash can icon on the tier row, then click Save.
Configure Meal Break Penalties
Meal break penalties define what an employee is owed when a meal break is missed, taken for fewer minutes than required, or started outside the required time window. The Meal Break Penalties section of a break rule is organized into tiers. Each tier corresponds to a shift length threshold, which allows different break requirements to apply to different shift lengths within the same rule.
The save step can be preformed at the end of configurations when setting up a new meal break penalty rule.
Set the minimum hourly rate used to calculate meal break penalties.
This is a rule-level setting. It applies across all tiers in the break rule, not to individual tiers. This value is used when Minimum Wage is selected as the Penalty Rate.
In the Meal Break Penalties section, locate the Minimum Wage field at the top of the section.
Enter the minimum hourly rate used to calculate meal break penalties.
Click Save.
Set maximum number of meal break penalties an employee can receive in a single workday.
This is a rule-level setting. It applies across all tiers in the break rule, not to individual tiers.
In the Meal Break Penalties section, locate the Maximum Penalties Per Day field at the top of the section.
Enter the maximum number of meal break penalties an employee can receive in a single workday.
Click Save.
Set the maximum number of minutes an employee can work before a meal break is required.
In the Meal Break Penalties section, locate the tier to configure.
Under Shift length, set the Max Minutes Without a Waiver field to the maximum number of minutes an employee can work before a meal break is required when no waiver is in place.
Under Shift length, set the Max Minutes With a Waiver field to the maximum number of minutes an employee can work before a meal break is required when a waiver is in effect.
Click Save.
Set the minimum number of minutes an employee must be off the clock for the break to count as a valid meal break
If an employee's break is shorter than this value, it does not count as a valid meal break and a penalty is triggered. For example, if Meal Break Minutes is set to 30 and an employee takes a 28-minute break, the break is invalid and a penalty is awarded.
In the Meal Break Penalties section, locate the tier to configure.
Under Meal break minutes, set the Meal Break Minutes field to the minimum number of minutes an employee must be off the clock for the break to count as a valid meal break.
Click Save.
Set the the window within an employee's shift their meal break must be taken.
Meal breaks taken outside of this window will not satisfy the meal break requirements and result in a penalty.
In the Meal Break Penalties section, locate the tier to configure.
Under Meal break window, set the Minimum Minutes Worked Before a Break field to the earliest point, in minutes worked, at which the meal break can begin.
Under Meal break window, set the Maximum Minutes Worked Before a Break field to the latest point, in minutes worked, by which the meal break must start.
Click Save.
Set the number of minutes of pay and rate awarded to the employee when a penalty is triggered
In the Meal Break Penalties section, locate the tier to configure.
Under Penalty earning, set the Penalty Minutes field to the number of minutes of pay awarded to the employee when a penalty is triggered.
Under Penalty earning, select a Penalty Rate:
Job Wage: the pay rate for the job the employee was working when the violation occurred
Minimum Wage: the minimum hourly rate entered in the Minimum Wage field at the top of the Meal Break Penalties section
Regular Rate (FLSA): a calculated average rate that factors in all jobs the employee works; see Regular Rate vs Job Rate for calculation details
Click Save.
Add a Meal Break Penalty Tier
In the Meal Break Penalties section, click Add Tier. A new tier row appears with empty configuration fields.
Configure the tier using the step-by-steps above:
Shift length and waiver settings
Meal break minutes
Meal break window
Penalty earning
Click Save after all fields on the tier are configured.
Multiple tiers can be added to a single break rule.
Remove a Meal Break Penalty Tier
In the Meal Break Penalties section, locate the tier to remove.
Click the trash can icon on the tier section.
Click Save.
Configure Rest Break Penalties
The Rest Break Penalties section of a break rule controls how the system responds when a required paid rest break is not provided on time. Some states require that employees receive paid rest breaks at defined intervals during a shift. When a break is missed or delayed past the configured threshold, the system triggers a penalty payment. The fields in this section define when a break is required, what qualifies as a valid break, and how the penalty is calculated.
Rest Breaks Penalties are only available when R365 Timeclock in enabled.
The save step can be preformed at the end of configurations when setting up a new rest break penalty rule.
Set the minimum hourly rate used to calculate rest break penalties.
This is a rule-level setting. It applies across all tiers in the break rule, not to individual tiers. This value is used when Minimum Wage is selected as the Penalty Rate.
In the Meal Break Penalties section, locate the Minimum Wage field at the top of the section.
Enter the minimum hourly rate used to calculate rest break penalties.
Click Save.
Set the maximum penalty payments an employee can receive in a single workday.
Navigate to the Rest Break Penalties section. Select it from the left-hand panel or scroll down to it on the page.
Under Max penalties per day, enter a value in Max Penalties Per Day. This sets the maximum number of rest break penalty payments an employee can receive in a single workday.
Click Save.
Set the maximum shift length, in minutes, before the system requires a paid rest break
Navigate to the Rest Break Penalties section. Select it from the left-hand panel or scroll down to it on the page.
Under Shift length, enter a value in minutes. This sets the maximum shift length, in minutes, before the system requires a paid rest break.
Click Save.
Sets the minimum number of minutes an employee must not be working for the system to count the break as valid.
A break shorter than this value does not satisfy the rest break requirement and triggers a penalty.
Navigate to the Rest Break Penalties section. Select it from the left-hand panel or scroll down to it on the page.
Under Rest break minutes, Enter a value in Minimum Break Minutes.
Click Save.
Set the rest break repeat interval
Navigate to the Rest Break Penalties section. Select it from the left-hand panel or scroll down to it on the page.
Under Repeat every, set the Repeat Minutes: This is number of minutes an employee can work after a break before an additional rest break is required.
For example, if the value is 120, an employee who works 2 hours, takes a break, and then works another 2 hours triggers the threshold for a second required break at the end of that second work period.
Under Percent of repeat minutes, enter the Percent of Repeat Minutes: The help text reads: "If applicable, set a percentage of the repeated work period that triggers a rest break.”
Click Save.
Set rest break penalty earning calculation
The penalty earning calculation determines the earning amount added when the rest break rule is violated.
Navigate to the the Rest Break Penalties section. Select it from the left-hand panel or scroll down to it on the page.
Under Penalty earning, set the Penalty Minutes: This is number of minutes of pay the employee receives when a rest break penalty is triggered.
Under Penalty earning, set the Penalty Rate: This is pay rate used to calculate the penalty payment. Select one of the following options:
Job Wage: The rate the employee is being paid for the job worked at the time of the violation.
Minimum Wage: the minimum hourly rate entered in the Minimum Wage field at the top of the Rest Break Penalties section
Regular Rate (FLSA): The calculated average rate across all jobs the employee worked during the pay period.
For a detailed explanation of how Regular Rate (FLSA) is calculated and how it differs from Job Wage, see Regular Rate vs Job Rate in the Labor Rules Overview.
Click Save.
