California Supreme Court's Ruling on Meal and Rest Periods Strikes Blow to Employers

In an eagerly anticipated decision, the California Supreme Court ruled today that the one-hour of additional pay due to employees for each day that they are not provided with a meal or rest period constitutes a "wage" rather than a "penalty." The practical significance of this ruling is that the premium-pay requirement for meal and rest period violations is subject to a three-year statute of limitations (which effectively is extended to four years as a claim under California's Unfair Competition Law, Business & Profession Code sections 17200, et seq.).