California Supreme Court Clarifies Formula for Calculating Payment of Meal, Rest, and Recovery Break Premiums

On July 15, 2021, the California Supreme Court issued a decision that has an impact on all California employers and the manner in which meal, rest, and recovery break premiums are calculated. Labor Code Section 226.7(c) provides that meal and rest break premiums must be calculated based on the employee’s “regular rate of compensation.” Many employers have relied upon prior opinions, including the lower appellate court’s opinion (now overruled), and their own interpretation of the statute that...
By: Allen Matkins