A recent decision by the California Supreme Court can result in additional potential liability for employers under the California Labor Code and underscores the importance of meal and rest period compliance. In Naranjo v. Spectrum Security Services, a class action suit alleging meal period violations, the Court held that extra pay provided to employees for missed meal and rest periods constitutes “wages” and therefore must be reported on statutorily required wage statements pursuant to Labor Code section 226 and paid within statutory deadlines when an employee separates from employment pursuant to Labor Code section 203. The decision means that if a California employer fails to pay premium pay for missed meal and rest periods, additional penalties for failure to provide an accurate wage statement and waiting time penalties may also be recoverable by plaintiffs.
