The California Supreme Court granted review. The Court of Appeal relied in part on Murphy v. The rationale was that premium pay did not constitute a “wage” because the premium payment is a penalty for the employer’s recalcitrance, not for work performed. ![]() The Court of Appeal held, inter alia, that Spectrum’s failure to make premium payments did not give rise to liability for inaccurate wage statements and waiting-time penalties. Naranjo brought a class action on behalf of Spectrum’s nonexempt employees, alleging that Spectrum failed to report premiums owed to employees on their wage statements and timely pay premiums to non-exempt employees upon discharge or resignation. Naranjo was a non-exempt employee who Spectrum terminated because he left his post to take a meal break in violation of Spectrum’s policy requiring him to remain on-duty due to the nature of the work. (Spectrum), which transports and guards prisoners and detainees with appointments outside federal custodial facilities. Plaintiff Gustavo Naranjo (Naranjo) was a security guard employed by Spectrum Security Services, Inc. On, the California Supreme Court raised the stakes again by holding that premium pay for missed breaks constitutes “wages” rather than penalties, such that they must be reported on wage statements during employment and paid within the statutory deadlines when an employee leaves the job. ![]() Last year, the California Supreme Court held that premium pay for non-compliant meal and rest breaks must be paid at the “regular rate of pay” rather than the employee’s base hourly rate of pay. Wage statements furnished to California employees must reflect premium pay.Ĭalifornia employees may recover waiting time penalties for unpaid premium payments upon discharge or resignation.Ĭalifornia employers whose workforce includes nonexempt employees should audit their break and final pay policies and practices as well as their wage statements to ensure that they reflect premium payments. Premium pay - the additional hour of pay non-exempt employees are entitled to if their employer fails to provide them with timely, full, and uninterrupted meal and rest periods - constitutes wages for purposes of pay stubs and timing of payment at separation from employment. Public Services, Infrastructure, Transportation.
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