Note that employers do this as well. A classic one is a manager setting a deadline that requires extreme crunches by employees. They're not necessarily compensating anyone more for that. Are the managers within their rights? Technically. The employees could quit. But they're shaving hours, days, and years off of employees without paying for it.
If a company policy says you can expense meals when taking clients out, but sales people started expensing their lunches when eating alone, it’s clearly expense fraud. I think this is obvious to everyone.
Yet when engineers are allowed to expense meals when they’re working late and eating at the office, but people who are neither working late nor eating at the office start expensing their meals, that’s expense fraud.
These things are really not gray area. It seems more obvious when we talk about sales people abusing budgets, but there’s a blind spot when we start talking about engineers doing it.
Engineers are very highly paid. Many are paid more than $100/hr if you break it down. If a salaried engineer paid the equivalent of $100/hr stays late doing anything, expenses a $25 meal, and during the time they stay late you get the equivalent of 20 minutes of work out of them- including in intangibles like team bonding via just chatting with coworkers or chatting about some bug- then the company comes out ahead.
That you present the above as considered "expense fraud" is fundamentally a penny-wise, pound-foolish way to look at running a company. Like you say, it's not really a gray area. It's a feature not a bug.
Luckily that comes down to the policy of the individual company and is not enforced by law. I am personally happy to pay engineers more so they can buy this sort of thing themselves and we dont open the company to this sort of abuse. Then its a known cost and the engineers can decide from themselves if they want to spend that $30 on a meal or something else.
It can be a win for both sides for the employees to work an extra 30-90 minutes and have some team bonding and to feel like they’re getting a good deal. (Source: I did this for years at a place that comp’d dinner if you worked more than 8 hours AND past 6 PM; we’d usually get more than half the team staying for the “free” food.)
I have worked in places where the exact opposite of what you describe happens. As OP says, people just stop working at 6 and just start reading reddit or scrolling their phones. No team bonding and chat because everyone is wiped out from a hard day. Just people hanging around, grabbing their food when it arrives, and leaving.
We too had more than half the team staying for the “free” food, but they definitely didnt do much work whilst they were there.
I'm making the case that mandatory unpaid overtime is effectively wage theft. It is legal in the US because half of jobs there are "exempt" from the usual overtime protections. There's no ethical reason for that, just political ones.
At any rate, I think people who want to crack down on meal expenses out of a sense of justice should get at least as annoyed by employers taking advantage of their employees in technically allowed ways.