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Certain California Employers Face Hurdles When Recalling Laid-Off Workers

Certain California Employers Face Hurdles When Recalling Laid-Off Workers
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California Supreme Court Holds That Meal And Rest Break Premiums Must Include All Forms Of Remuneration (Not Just Base Hourly Rate) - Employment and HR

On July 15, 2021, the California Supreme Court issued its decision in Ferra v. Loews Hollywood Hotel, LLC, in which it held that meal and rest break premiums required under California Labor Code section 226.7 ( Section 226.7 ) must be paid at non-exempt employees regular rate of pay-not merely their base hourly rate. The decision, which applies retroactively, requires that employers promptly adjust their pay practices. Background Like the federal Fair Labor Standards Act ( FLSA ), Labor Code section 510 ( Section 510 ) requires that employers pay non-exempt employees overtime at their regular rate[s] of pay. Under a different section of the Labor Code and the Industrial Welfare Commission s ( IWC ) Wage

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