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Under federal law, an employer can deduct time for lunch only if the employee has a lunch break of at least 30 minutes and has no work duties during that time.
You can either file a wage claim (the Labor Commissioner's Office), or you can file a lawsuit in court against your employer to recover the premium of one additional hour of pay at your regular rate of compensation for each workday that the rest period is not provided.
Many employers provide employees with a rest or lunch break, whether paid or unpaid. This common practice is not required everywhere, however: The federal wage and hour law, called the Fair Labor Standards Act (FLSA), doesn't require employers to provide meal or rest breaks.
Yes, your employer can require that you stay on the premises during your rest break. Since you are being compensated for the time during your rest period, your employer can require that you remain on its premises.
However, when employers do offer short breaks (usually lasting about 5 to 20 minutes), federal law considers the breaks as compensable work hours that would be included in the sum of hours worked during the workweek and considered in determining if overtime was worked.