CA Supreme Court Establishes New Meal and Rest Period Pitfall for Employers

Last week, the California Supreme Court clarified a previously ambiguous aspect of Labor Code Section 226.7, which requires an employer to pay an employee one additional hour of pay at the regular rate of compensation when the employer fails to provide a legally compliant meal period or rest break. While it was previously assumed this premium compensation is considered a “penalty,” the Supreme Court decided in Naranjo v. Spectrum Security Services, Inc. that it is a wage.