The California Supreme Court's recent ruling in Naranjo v. Spectrum Security Services, Inc. has significant implications for employers in the state. The ruling establishes that if an employer can demonstrate it reasonably and in good faith believed it was providing complete and accurate wage statements to its employees, then it has not “knowingly and intentionally” violated California's wage statement law, even if that belief was mistaken. This "good faith" defense is crucial as it can shield employers from substantial penalties for inaccuracies in wage statements. However, the defense requires employers to show they had a reasonable basis for believing their