News & Analysis as of

Rest and Meal Break Labor Code Employer Liability Issues

CDF Labor Law LLP

[Webinar] Wage & Hour Minefield: Top Compliance Risks and Litigation Trends for 2025 - February 26th, 10:00 am - 11:00 am PT

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Wage and hour claims—especially under California’s Private Attorneys General Act (PAGA) and class action lawsuits—continue to rise at an alarming rate. With more PAGA notices filed than ever before and wage and hour class...more

Fisher Phillips

California Supreme Court Rules Public Employers Are Exempt from PAGA: What Employers Need to Know + 4 Practical Tips

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The California Supreme Court just ruled that public employers are not subject to civil penalties under the state’s Private Attorneys General Act of 2004 (PAGA). In a pivotal decision, the court held that public entities,...more

Sheppard Mullin Richter & Hampton LLP

California Supreme Court Confirms the “Knowing and Intentional” Standard of California’s Wage Statement Law Requires a “Knowing...

In Naranjo v. Spectrum Security Services, the case’s second appearance before the California Supreme Court in two years, the Supreme Court confirmed that an employer does not incur civil penalties for failing to report unpaid...more

Meyers Nave

Wage and Hour Policies Amid Rising PAGA Filings

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At Meyers Nave, we prioritize assisting our clients in establishing and maintaining wage and hour policies that comply with legal standards. This includes implementing effective systems and processes to ensure all levels of...more

CDF Labor Law LLP

California Supreme Court Provides Relief and Hope for Good Faith Employers

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This week, the California Supreme Court filed a decision in Naranjo v. Spectrum Security Services, Inc., S279397, holding that “an employer’s objectively reasonable, good faith belief that it has provided employees with...more

K&L Gates LLP

Keeping the Faith: Employer's Good Faith Belief Prevails

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In a rare victory for employers, the California Supreme Court unanimously held in Naranjo v. Spectrum Sec. Serv., Inc., S279397 (Decided 6 May 2024) that an employer’s “objectively reasonable, good faith belief” that it has...more

Seyfarth Shaw LLP

Good Faith Defense Applies To Wage Statement Penalty Claims

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The California Supreme Court concluded that the “good faith” defense applies to claims seeking to impose penalties under California Labor Code section 226. An employee must show that an employer’s failure to comply with...more

Fisher Phillips

Good Faith Goes a Long Way to Defeat Wage Statement Claims: 4 Tips for Employers After California Supreme Court Win

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Employers finally received some welcome news from the California Supreme Court Monday and now have a better shot of successfully using a “good faith” defense to wage-and-hour lawsuits. According to the ruling, if an employer...more

Morgan Lewis

California Supreme Court: Trial Courts Lack Authority to Strike or Dismiss PAGA Claims on Manageability Grounds

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In Estrada v. Royalty Carpet Mills Inc., a unanimous decision by the California Supreme Court resolves a split between California courts of appeal by ruling that a trial court does not have inherent authority to strike PAGA...more

Seyfarth Shaw LLP

The California Supreme Court Pulls The Carpet Out From Underneath Employers

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Seyfarth Synopsis: On January 18, 2024, in Estrada v. Royalty Carpet Mills, Inc., the California Supreme Court addressed the split in appellate authority as to whether trial courts have inherent authority to strike a PAGA...more

CDF Labor Law LLP

CDF Wage and Hour Task Force – Monthly Tips: Common Pitfalls Associated with Remote Workers

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As the health risks of the pandemic wind down, the complexities of offering remote work endure. Some employers are still offering full remote work, while others offer a hybrid to remain competitive and retain employees....more

Proskauer - California Employment Law

Good News for Employers: Good Faith Belief of Compliance Precludes Both Final Wage and Wage Statement Penalties

Last summer, we reported here the California Supreme Court ruling that premium payments owed under Labor Code section 226.7 for meal and rest break violations constitute “wages.” The Naranjo et al. v. Spectrum Sec. Servs.,...more

Ervin Cohen & Jessup LLP

California’s Supreme Court Declares Meal and Rest Period Premiums are “Wages”

In the words of Tom Cruise’s character Lt. Daniel Kaffee in A Few Good Men, “the hits keep on coming.” This quote crystallizes how California employers will undoubtedly feel following the California Supreme Court’s ruling in...more

Jones Day

California Supreme Court Authorizes Additional Remedies for Meal Break Violations: Waiting Time and Wage Statement Penalties Now...

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The California Supreme Court sides with employees in Naranjo v. Spectrum Security Services, finding derivative claims available for waiting time and pay stub penalties available for meal and rest break violations. This...more

McDermott Will & Emery

California Supreme Court Clarifies Missed-Break Premiums Penalties

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On May 23, 2022, the California Supreme Court issued its decision in Naranjo v. Spectrum Sec. Servs. Inc. (Naranjo), holding that meal and rest break premiums (also known as extra pay or premium pay) constitute “wages” that:...more

Perkins Coie

CA Court Confirms Employers Must Timely Pay and Report Meal Period Premiums or Face Additional Penalties

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The California Supreme Court, on May 23, 2022, issued a seminal opinion in Naranjo v. Spectrum Security Services, Inc., which found that employees can recover penalties for failure to timely pay wages at termination and...more

Akin Gump Strauss Hauer & Feld LLP

California Supreme Court Rules That Unpaid Break Premiums May Give Rise to Derivative Penalties

Key Points - On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., the California Supreme Court held that a failure to provide premium pay for meal or rest break violations under California Labor Code § 226.7...more

CDF Labor Law LLP

Meal Premiums Now Considered A “Wage” By California Supreme Court In Naranjo v. Spectrum Security Services, Inc.

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Earlier this week, the California Supreme Court added another layer of complexity to California’s already-onerous wage and hour regulatory scheme. In this week’s development, the California Supreme Court held in Naranjo v....more

Sheppard Mullin Richter & Hampton LLP

California Supreme Court Holds Meal Period Premiums Are “Wages” and May Trigger Wage Statement and Waiting Time Penalties

On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., P.3d (2022), the California Supreme Court issued an important wage-and-hour decision.  In Naranjo, the Court held that meal break premiums that an employer pays...more

Buchalter

Naranjo v. Spectrum Security Services, Inc.: The California Supreme Court Determines that Meal and Rest Premiums are Wages and...

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On May 23 2022, the California Supreme Court reversed the Second Appellate District Court of Appeal and made clear that meal and rest period premiums (or “extra pay” or “premium pay”) constitute “wages” and must be accurately...more

Fisher Phillips

California Supreme Court Says Payments for Missed Breaks are “Wages”: A 3-Step Action Plan for Employers

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The California Supreme Court ruled Monday that any premiums paid to employees who are unable to take a full and timely meal or rest period should be considered “wages,” which not only triggers two key obligations on the part...more

Payne & Fears

CA Supreme Court: Meal/Rest Break Premiums Can Be the Basis for Waiting Time Penalties and Inaccurate Wage Statement Claims

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On May 23, 2022, the California Supreme Court issued a long-awaited decision in Naranjo v. Spectrum Security Services, Inc., holding unpaid meal and rest break premiums can give rise to derivative claims for waiting time...more

Littler

California Supreme Court Confirms Applicability of Derivative Waiting Time Penalty and Wage Statement Claims for Meal and Rest...

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In another unfavorable ruling for employers that stresses the importance of meal period and wage statement compliance, the California Supreme Court has held in Naranjo v. Spectrum Security Services, Inc. that meal period and...more

Weintraub Tobin

Breaking News – Premium Pay Constitutes Wages!

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We previously advised employers that the California Supreme Court agreed to review the Court of Appeal decision Gustavo Naranjo v Spectrum Security Services, Inc. (“Naranjo”), decided by the Second Appellate District in 2019....more

Jackson Lewis P.C.

California Supreme Court Rules Additional Penalties May Be Recoverable for Meal & Rest Period Violations

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The underlying action, Naranjo v. Spectrum Security Services, was a class action brought by former and current employees, alleging violations of meal period violations. The plaintiffs sought not only premium wages for the...more

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