Calif. High Court Grapples With Limitations Period in Meal-Pay Law

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.

An extra hour of pay by any other name is still an extra hour of pay.

But if that payment is made because an employer failed to give meal and rest breaks, should it be considered compensation for the employee or punishment for the company?

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Calif. High Court Grapples With Limitations Period in Meal-Pay Law

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