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California Supreme Court: Meal and Rest Break Violations Can Trigger Derivative Penalties and Prejudgment Interest at Seven Percent | Davis Wright Tremaine LLP

Employers will face significantly greater exposure for noncompliant meal and rest break practices following a recent California Supreme Court ruling. In Naranjo v. Spectrum Security.

No Break from Breaks in California: Break Premiums Are Wages and Can Give Rise to Wage Statement and Waiting Time Penalties – Publications

On May 23, 2022, the California Supreme Court issued a decision in Naranjo v. Spectrum Security Services, Inc., finding that meal break premium pay is considered wages for purposes of the California Labor Code’s provisions regarding timely wage payment and wage statements, and thus can support penalties for wage statement violations under Labor Code Section 226 and waiting time penalties under Labor Code Section 203. We have compiled immediate action items raised by the California Supreme Court’s Naranjo decision (as well as the 2021 Donohue and Ferra decisions), as well as a list of FAQs regarding treatment of the calculation and wage statement reporting of premiums flowing from Naranjo.

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