This week the California Supreme Court provided a blow to employers as the Court issued its opinion in Naranjo v. Spectrum Security Services, Inc., a case addressing the applicability of wage statements and timely payment penalties for missed-break premium pay.
In Naranjo, the California Supreme Court held that premium pay is not only a remedy for a legal violation, but such pay also constitutes wages. The Court reasoned that while the premium pay due for the deprivation of missing meal and/or rest breaks compensates employees for the hardship of missed breaks, when those hardships include rendering work, the pay owed is also deemed wages. As wages, these premiums need to be documented on employee paystubs and timely paid upon departure from employment as well
The ruling in Naranjo stresses the importance that employers provide compliant meal and rest break periods to its employees. If an employer does not timely provide missed-break premium pay, they open the door to other penalties – including waiting time and wage statement penalties. To learn more about how this new decision impacts your timekeeping, meal & rest break policies and final pay requirements, contact the Employer Lawyers at Chauvel & Glatt.
This material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute legal advice. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500 for legal assistance near you.
