As we end May 2022 and break for Memorial Day weekend, there were some major case develops within the last week for California employers. Here are five key highlights California employers need to know about:
1. Naranjo v. Spectrum Security Services, Inc. – Penalties just increased for non-compliant meal and rest breaks.
This week, the California Supreme Court decided the issue of whether premium wages owed to employees for meal and/or rest break violations that are not paid when the break was missed, would also trigger penalties for wage statement violations under Labor Code section 226 and for waiting time penalties for unpaid wages for employees who leave employment under Labor Code section 203. The Supreme Court held that the premium wages owed to employees also trigger these derivative penalties under the Labor Code.
Takeaway for California employers: Ensure proper meal and rest break policies are established because the employees are not only entitled to the premium wages, but if the premium wages were not paid to employees when they did not receive a compliant meal or rest break, the employer will be liability for additional penalties under Labor Code section 226 and waiting time penalties under Labor Code section 203.
2. Pineda v. Sun Valley Packing, L.P. – Another decision invalidating arbitration agreements placed in employee handbooks.
Another California court refused to enforce an arbitration agreement contained in the employee handbook. In Pineda v. Sun...
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