Littler Mendelson PC recently issued the following announcement.
California employees are now entitled to premiums for meal, rest and heat recovery periods at the regular rate of pay rather than the base rate, as used by most employers. In ideal circumstances, an employer’s payroll software is already calculating the regular rate of pay correctly for overtime purposes, and that rate now needs to be used when calculating premiums for each meal, rest, and heat recovery period that was not provided. This impacts not only the week in which the premium is paid, but there may be additional pay adjustments required to account for any later paid compensation to a nonexempt employee (e.g., quarterly or annual bonuses, commissions, etc.). Significantly, the ruling in Ferra is retroactive, and employers may now face liability for previous practices of paying premiums at the base rate of pay.
This webinar will cover the impact of the court’s decision moving forward and on past practices given the retroactive impact. We will also address what should be accounted for in the regular rate and the impact of paying flat sum bonuses. With this in mind, we will revisit the Donohue v. AMN decision and the renewed focus on ensuring compliance with the state’s meal period and rest break requirements.
Date: September 2, 2021
Original source can be found here.