Are Waiting-Time Penalties Recoverable for Meal and Rest Period Violations?

A recent case leaves California courts considering whether waiting-time penalties are recoverable for meal and rest period violations.

The Case: Naranjo v. Spectrum Security Services, Inc.

The Court: Los Angeles CountySuper. Ct

The Case No.: BC372146

The Plaintiff: Naranjo v. Spectrum Security Services, Inc.

The Plaintiff in the case, Naranjo, (and a class of former and current employees) were a class of security guards. The group filed suit against Spectrum alleging meal break violations. They sought premium wages, along with derivative remedies, waiting time penalties, itemized wage statement penalties, and attorney fees.

The Defendant: Naranjo v. Spectrum Security Services, Inc.

The Defendant in the case, Spectrum, contracts exclusively with federal agencies. Its officers take temporary custody of federal prisoners and ICE (Immigration and Customs Enforcement) detainees who must travel offsite for medical treatment or other appointments, and they provide continuous supervision until the individuals are returned to their custodial locations. Spectrum officers also guard witnesses awaiting court appearances.

Summary of the Case: Naranjo v. Spectrum Security Services, Inc.

On appeal, the court held that nonexempt employees (at-will, on-call, and hourly) who are paid for on-duty meal periods are also entitled to premium wages unless the employer has a written agreement that includes an on-duty meal period revocation clause. The court of appeals also held that unpaid premium wages for meal break violations accrue prejudgment interest at seven percent. However, unpaid premium wages for meal break violations do not entitle the employees to additional remedies (under sections 203 and 226) if the employee’s pay or their pay stubs during the course of the violations included the wages earned for their on-duty meal breaks, but not the unpaid premium wages. The Court of Appeals found that the trial court erred in denying certification of the rest break class. The findings were affirmed in part, reversed in part, and remanded. The court of appeals held that unpaid premium wages for meal-period violations didn’t entitle employees to pay stub penalties or waiting-time penalties. Many watch this case to see if it can resolve the long-standing debate about waiting-time penalties. Are they recoverable for meal and rest period violations? If the California Supreme Court disagrees with the lower courts, potential penalties for California meal and rest period violations will increase.

If you have questions about California employment law or if you need help filing a California class-action, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices located in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.