CA Supreme Court Holds Meal And Rest Break Premiums Are "WAGES"
| Published date | 30 May 2022 |
| Law Firm | Kelley Drye & Warren LLP |
| Author | Ms Kimberly C. Carter and Ronnie Arenas |
On May 23, 2022, the California Supreme Court issued a long-awaited decision in Naranjo v. Spectrum Security Services, Inc., 40 Cal. App. 5th 444 (2019). The Court reversed in part the decision of the Court of Appeal by holding that premium pay for missed meal and rest breaks constitutes "wages" that can give rise to derivative claims for inaccurate wage statements (Labor Code section 226) and waiting time penalties (Labor Code section 203). The Court also affirmed that the default prejudgment interest rate of seven percent set forth in the state Constitution applies to such premiums. The Court's ruling as...
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