Double Premium Pay for Missed Meal & Rest Breaks

Labor Code section 226.7 requires an employer who fails to provide an employee with a meal or rest period to pay that employee one additional hour of pay (or premium payment) "for each work day that the meal or rest period is not provided."  Attorneys have long questioned whether this statute authorizes one premium payment per work day or two premium payments per work day – one for failure to provide a meal period and another for failure to provide a rest period.

Last week the California Second District Court of Appeals answered this question in a decision that will potentially double employer exposure in meal and rest break litigation.  In United Parcel Service, Inc. v. Superior Court the Court held section 226.7 permits up to two premium payments per work day.

The Count based its decision on federal case law, IWC Wage Orders, the specific language of section 226.7, and legislative history:

In short, we conclude, based upon the wording of section 226.7, subdivision (b), the legislative and administrative history of the statute and IWC wage orders, the public policy behind the statute and wage orders, and also the principle that we are to construe section 266.7 broadly in favor of protecting employees, that the employees in this case may recover up to two additional hours of pay on a single work day for meal period and rest period violations – one for failure to provide a meal period and another for failure to provide a rest period.

This case should serve as a cautionary tale for all California employers.  Employers must make sure they are in strict complaince with the meal and rest break requirements.