California Court of Appeal Clarifies Meal and Rest Period Premium Calculation and the Enforceability of Rounding Policies

California employers have long grappled with two wage and hour questions:

  1. What rate of pay should be used to calculate meal and rest period premiums in California?
  2. Does the facially neutral “rounding” of employee work time, which results in a small subset of employees being undercompensated, result in systematic undercompensation on a class-wide basis?

California Court of Appeal Identifies Triggers for Reporting Time Pay Obligation

In a ruling that will have a significant impact on the retail and restaurant industries, among others in California, the California Court of Appeal ruled that a retail employer’s call-in scheduling policy—in which employees were required to call the employer in advance of a shift to find out if they needed to show up for