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Paying premiums for noncompliant meal, rest, and recovery periods to nonexempt employees in California just got more expensive. In a groundbreaking decision, the Supreme Court of California ruled today that the rate of pay when paying premiums is not the base hourly rate of pay, as so many employers have assumed, but rather the regular rate of pay a rate that encompasses not only base hourly wages but also shift differentials, commissions, bonuses, and other per-hour value of nonhourly compensation the employee has earned. This is the same regular rate computation employers use to compute overtime pay owed. Frustratingly, the decision applies retroactively and will, without question, lead to a new wave of class and Private Attorneys General Act (“PAGA”) actions in California.
Senate confirms Calif labor secretary Su to DOL s No 2 spot
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Shane Le Master Labor Attorney with Hunton Andrews Kurth Law Firm
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