If an employer gives an extra hour of pay for failure to provide a meal or rest break, is the pay a penalty for the company or compensation for the worker? The California Supreme Court grappled with that question during Wednesday oral arguments, and indications are the vote will be close. The highly anticipated ruling will decide the statute of limitations for claims under Labor Code §226.7; employees will have three years to file a claim if the extra hour is compensation -- or one year if it's a penalty.
Calif. High Court Grapples With Limitations Period in Meal-Pay Law
March 8, 2007