News & Analysis as of

CA Supreme Court Employer Liability Issues Wage Statements

Manatt, Phelps & Phillips, LLP

California Supreme Court Finds Good Faith Defense For Employers

When is an employer’s violation of providing employees with wage statements knowing and intentional, triggering financial penalties? Taking its second look at the case, the California Supreme Court ruled that an...more

Morgan Lewis

California Supreme Court Confirms There is a Good Faith Defense to Wage Statement Penalties

Morgan Lewis on

The California Supreme Court recently issued its opinion in Naranjo v. Spectrum Security Services Inc., resolving a split of authority in California state and federal courts whether there is a “good faith” defense to claims...more

Kilpatrick

California Supreme Court Recognizes Good Faith Defense to Wage Statement Violations

Kilpatrick on

On May 7, 2024, the California Supreme Court resolved a lower court split over the meaning of a “knowing and intentional failure to comply” under California Labor Code Section 226, which dictates requirements for providing...more

Littler

California Supreme Court Affirms Good-Faith Efforts May Shield Employers in Wage Statement Lawsuits

Littler on

In a favorable ruling for employers defending against wage statement compliance claims, the California Supreme Court in Naranjo v. Spectrum Services Inc. (Naranjo) settled an age-old dispute by determining that an employer...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

California Supreme Court Rules Employer Can Avoid Penalties for Good-Faith Wage Reporting Violation

On May 6, 2024, the Supreme Court of California held that when an employer “reasonably and in good faith” believes it complied with California’s legal requirement to provide accurate wage statements and it does not, the...more

CDF Labor Law LLP

California Supreme Court Provides Relief and Hope for Good Faith Employers

CDF Labor Law LLP on

This week, the California Supreme Court filed a decision in Naranjo v. Spectrum Security Services, Inc., S279397, holding that “an employer’s objectively reasonable, good faith belief that it has provided employees with...more

Manatt, Phelps & Phillips, LLP

CA Supreme Court Grants Employers Relief on Wage Statement Penalties Under Labor Code Section 226

On Monday May 7, the California Supreme Court confirmed, in Naranjo v. Spectrum Securities Services, Inc., S279397.PDF (ca.gov), that penalties authorized under Labor Code Section 226 (“Section 226”) for “knowing and...more

Jackson Lewis P.C.

California Supreme Court Upholds Good Faith Belief Defense for Certain Wage Statement Penalties

Jackson Lewis P.C. on

For the second time, the California Supreme Court issued a ruling in Naranjo v. Spectrum Security Systems in May. In May 2022, the California Supreme Court issued its first decision in Naranjo v. Spectrum Security Systems,...more

Fisher Phillips

Good Faith Goes a Long Way to Defeat Wage Statement Claims: 4 Tips for Employers After California Supreme Court Win

Fisher Phillips on

Employers finally received some welcome news from the California Supreme Court Monday and now have a better shot of successfully using a “good faith” defense to wage-and-hour lawsuits. According to the ruling, if an employer...more

Proskauer - California Employment Law

Good News for Employers: Good Faith Belief of Compliance Precludes Both Final Wage and Wage Statement Penalties

Last summer, we reported here the California Supreme Court ruling that premium payments owed under Labor Code section 226.7 for meal and rest break violations constitute “wages.” The Naranjo et al. v. Spectrum Sec. Servs.,...more

Faegre Drinker Biddle & Reath LLP

California Supreme Court: Unpaid Meal and Rest Period Premiums Can Lead to Wage Statement and Waiting Time Penalties

On May 23, 2022, the California Supreme Court ruled in Naranjo v. Spectrum Security Services, Inc. that unpaid meal and rest period premiums can form the basis of claims for wage statement violations under California Labor...more

Weintraub Tobin

California Employment News: Premium Pay Constitutes Wages

Weintraub Tobin on

On May 23, 2022, the California Supreme Court issued its decision in Gustavo Naranjo v Spectrum Security Services, Inc. (“Naranjo”), decided by the Second Appellate District in 2019. Employment attorneys Shauna Correia and...more

Jones Day

California Supreme Court Authorizes Additional Remedies for Meal Break Violations: Waiting Time and Wage Statement Penalties Now...

Jones Day on

The California Supreme Court sides with employees in Naranjo v. Spectrum Security Services, finding derivative claims available for waiting time and pay stub penalties available for meal and rest break violations. This...more

McDermott Will & Emery

California Supreme Court Clarifies Missed-Break Premiums Penalties

McDermott Will & Emery on

On May 23, 2022, the California Supreme Court issued its decision in Naranjo v. Spectrum Sec. Servs. Inc. (Naranjo), holding that meal and rest break premiums (also known as extra pay or premium pay) constitute “wages” that:...more

Perkins Coie

CA Court Confirms Employers Must Timely Pay and Report Meal Period Premiums or Face Additional Penalties

Perkins Coie on

The California Supreme Court, on May 23, 2022, issued a seminal opinion in Naranjo v. Spectrum Security Services, Inc., which found that employees can recover penalties for failure to timely pay wages at termination and...more

Seyfarth Shaw LLP

Wage Statement And Final Pay Rules Apply To Meal And Rest Break Premiums

Seyfarth Shaw LLP on

Seyfarth Synopsis: The California Supreme Court recently determined that meal and rest period premium payments are subject to the final pay timing requirements of Labor Code section 203 and the wage statement reporting...more

Akin Gump Strauss Hauer & Feld LLP

California Supreme Court Rules That Unpaid Break Premiums May Give Rise to Derivative Penalties

Key Points - On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., the California Supreme Court held that a failure to provide premium pay for meal or rest break violations under California Labor Code § 226.7...more

Stokes Wagner

California Supreme Court Holds Premium Pay for Missed Breaks Constitutes “Wages” That Must Be Reported on Wage Statements and Paid...

Stokes Wagner on

On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., the California Supreme Court clarified that a violation of Labor Code section 226.7 (payment of premium wages for meal and rest period violations) gives rise to...more

Buchalter

Naranjo v. Spectrum Security Services, Inc.: The California Supreme Court Determines that Meal and Rest Premiums are Wages and...

Buchalter on

On May 23 2022, the California Supreme Court reversed the Second Appellate District Court of Appeal and made clear that meal and rest period premiums (or “extra pay” or “premium pay”) constitute “wages” and must be accurately...more

Fox Rothschild LLP

California Supreme Court Issues Pro-Employee Ruling Expanding Definition of Wages

Fox Rothschild LLP on

California employers now face derivative liability for failing to list premium payments for meal periods or rest breaks on their wage statements, as well as for failing to pay all premiums timely upon separation. ...more

Fisher Phillips

California Supreme Court Says Payments for Missed Breaks are “Wages”: A 3-Step Action Plan for Employers

Fisher Phillips on

The California Supreme Court ruled Monday that any premiums paid to employees who are unable to take a full and timely meal or rest period should be considered “wages,” which not only triggers two key obligations on the part...more

Payne & Fears

CA Supreme Court: Meal/Rest Break Premiums Can Be the Basis for Waiting Time Penalties and Inaccurate Wage Statement Claims

Payne & Fears on

On May 23, 2022, the California Supreme Court issued a long-awaited decision in Naranjo v. Spectrum Security Services, Inc., holding unpaid meal and rest break premiums can give rise to derivative claims for waiting time...more

Littler

California Supreme Court Confirms Applicability of Derivative Waiting Time Penalty and Wage Statement Claims for Meal and Rest...

Littler on

In another unfavorable ruling for employers that stresses the importance of meal period and wage statement compliance, the California Supreme Court has held in Naranjo v. Spectrum Security Services, Inc. that meal period and...more

Weintraub Tobin

Breaking News – Premium Pay Constitutes Wages!

Weintraub Tobin on

We previously advised employers that the California Supreme Court agreed to review the Court of Appeal decision Gustavo Naranjo v Spectrum Security Services, Inc. (“Naranjo”), decided by the Second Appellate District in 2019....more

Jackson Lewis P.C.

California Supreme Court Rules Additional Penalties May Be Recoverable for Meal & Rest Period Violations

Jackson Lewis P.C. on

The underlying action, Naranjo v. Spectrum Security Services, was a class action brought by former and current employees, alleging violations of meal period violations. The plaintiffs sought not only premium wages for the...more

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