While perhaps overlooked in favor of other high-profile rulings (we’re looking at you, Viking River Cruises), the California Supreme Court’s decision in Naranjo v. Spectrum Security Services, Inc., No. S258966 (Cal. May. 23, 2022) may turn out to be one of the most significant cases of the year for California employers. As we previously reported, Naranjo held that meal and rest period premiums may be characterized as “wages” under the California Labor Code, triggering derivative wage statement penalties under Labor Code section 226 and waiting time penalties under Labor Code section 203 if meal and rest period premiums go unpaid. The full consequences of that ruling are still unfolding, as evidenced by the Court of Appeal’s recent decision in Betancourt v. OS Restaurant Services, LLC, 83 Cal. App. 5th 132 (2022). Betancourt holds that because meal and rest period premiums are now understood to be “wages,” an employee who successfully sues for recovery of those premiums will now be entitled to attorneys’ fees as well. In yet another distressing ruling for employers, Betancourt may increase risk and litigation costs for employers by allowing plaintiffs’ lawyers to recoup potentially large fee awards, even where the recovery for the employee is small.
The plaintiff in Betancourt sued her former employer for a variety of claims, including (1) meal and rest break violations, (2) wage statement violations, (3) waiting time violations, (4) wrongful termination, and (5)...
Schubert Jonckheer & Kolbe LLP advises e.l.f. Beauty, Inc. (NYSE: ELF) investors that the firm is investigating potential legal claims arising from alleged false statements about the strength ...