PEO Pointers: Who Stole My Lunch?

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Welcome to “PEO Pointers,” a regular series of quick-read alerts to keep PEOs and their client companies up to speed on the latest issues effecting the industry and what they can do to ensure compliance.

The last several months have seen two significant California Supreme Court decisions that will have a major impact on California meal period compliance – and this is especially true for PEOs. These important decisions will affect any PEO time-and-attendance system that allows rounding. They will also affect PEO payroll processing because the decisions alter the way meal period premiums should be calculated for employees who receive certain types of incentive compensation. PEOs with worksite employees in California should make sure you understand these new standards and make any systems changes that may be necessary. Read the Fisher Phillips Insights about the Donohue and Ferra cases here – which each include step-by-step compliance directions at their conclusions.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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