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Is "payment" for missed meal period a penalty or a wage?
February 23, 2006 by Ross Runkel at LawMemo
California Labor Code Section 226.7 provides:
"If an employer fails to provide an employee a meal period or rest period in accordance with an applicable order of the Industrial Welfare Commission, the employer shall pay the employee one additional hour of pay at the employee’s regular rate of compensation for each work day that the meal or rest period is not provided."
California Courts of Appeal have been split on the issue of whether the "additional hour of pay" is a "wage" subject to a three or four year statute of limitations or is a "penalty" subject to a one year statute of limitations.
The California Supreme Court granted review in Murphy v. Kenneth Cole Productions, and is expected to resolve the conflict. The Court of Appeal in the Murphy case concluded that the payment was a "penalty."
Murphy v. Kenneth Cole Productions.
Court of Appeal decision (12/02/2005)
Order granting review (02/22/2006):
More details: Labor & Employment Law Blog
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