If your employees aren't allowed to leave the workplace for their meals, you'll have to shell out extra money
Traditionally, premium pay is additional compensation for overtime, holidays worked or standby duty, according to the U.S. Department of Commerce.
But a California court has recently ruled that employees should receive premium pay if their employer doesn’t grant them a meal period that’s compliant with labor laws.
The case of Estrada et al. v. Royalty Carpet Mills LLC involved an employer that used to operate various warehouses and carpet manufacturing facilities across California until it ceased its operations in 2017. Certain employees – the plaintiffs in this case – alleged meal and rest period violations during their tenure. So, they made representative claims under the Private Attorneys General Act (PAGA), which allows wronged employees to bring lawsuits for the recovery of civil penalties.
The plaintiffs sought premium pay under s. 226.7 of the Labor Code for these violations and also filed derivative claims for waiting time and wage statement penalties.
The trial court initially certified two classes: the first for employees working in a Porterville, CA-based facility, and the second for employees working in two facilities in Orange County, dubbed the Dyer/Derian class.
Later, the trial court decertified the Dyer/Derian meal period subclass after it found that there were too many individualized issues to justify treating the employees as a class. It also...
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