The California Supreme Court recently addressed what the proper rate for paying missed meal, rest, and recovery periods is under California state law. The California Supreme Court concluded that the rate must be calculated using not only the employees’ base hourly rate but also a proportionate share of nondiscretionary payments, thus increasing the rate. This ruling has been applied retroactively by the court.
Background
Under California’s Labor Code, Section 226.7(c), employers are required to...