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How are companies handling the new CA meal and rest break legislation to calculate the EE's rate?
CA has new legislation on how to handle meal and rest breaks. We are wondering how companies are using Oracle to determine the amount to be paid to the employee for a missed meal or rest break.
Legislation info:
The California Supreme Court published their decision in Ferra v. Loews Hollywood Hotel, LLC reversing the court of appeals and ruling that the meal period premium should be paid at the employee’s regular rate of compensation (the same calculation required for the employee’s overtime rate) and not the employee’s hourly rate.
The Supreme Court reversed an appeals court decision and interpreted the labor code to require that meal period and rest break premium payments be paid at the regular rate of compensation, where ‘regular rate of compensation’ has the same meaning as regular rate of pay for overtime calculations. Employers must use the employee’s overtime regular rate of pay as calculated for the current workweek, which is determined by dividing total earnings (except for statutory exclusions) in the workweek by total number of hours worked in the workweek: The court also held that their interpretation of the statute applies retroactively.