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Just When You Thought You Understood California s Meal and Rest Break Premium Laws… | K&L Gates LLP
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California Supreme Court s Decision on Premium Payments for Meal, Rest, and Recovery Break Violations | Ogletree, Deakins, Nash, Smoak & Stewart, P C
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California Employer Meal and Rest Period Pay Practices to Change
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Calif Ferra v Loews Hollywood Hotel Effects on Break Violations
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Friday, July 16, 2021
HIGHLIGHTS OF FERRA V. LOEWS HOLLYWOOD HOTEL, LLC
Premiums for noncompliant meal, rest, and recovery periods must be paid at the “regular rate of pay” rather than the base hourly rate.
The decision applies retroactively, and the statute of limitations for meal and rest break liability is up to four years.
California employers whose workforce includes nonexempt employees who receive incentive pay, such as nondiscretionary bonuses, commissions, piece rate compensation, or shift differential pay should revisit the rate at which meal and rest period premiums are paid.
Is “regular rate of compensation” the same thing as “regular rate of pay” for purposes of calculating meal and rest break premiums? On 15 July 2021, in the landmark decision of