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Rest and Meal Breaks — Rest Means Rest, Not Work!

May 11, 2017

While the California Labor Code requires employers to provide meal and rest breaks to their nonexempt employees, the pressing needs of the business or urgency in the delivery of services may tempt individuals to forego these breaks.  Recent decisions by the California Supreme Court, however, illustrate that employers should be very careful to ensure employees are free to take these breaks and are relieved of all work duties while those breaks are taken.

The 2012 California Supreme Court case Brinker v. Superior Court clarified that under California law, an employer satisfies their legal obligation to provide a 30 minute, off-duty and unpaid meal break if all of the following conditions are met:

  • The employer relieves the employee of all work duties;
  • The employer relinquishes control over all activities of the employee;
  • The employer permits a reasonable opportunity to take an uninterrupted 30-minute break;
  • The employer does not impede or discourage the employee from taking a 30-minute meal break.

This case also discusses rest breaks that employers are required to provide. An employee is entitled to two paid 10-minute rest breaks if they work a customary eight-hour workday. After Brinker, the issue of whether the rest breaks could be taken while the employee was “on-call” remained undecided. As shown above, this would not ordinarily be permitted in connection with meal breaks.

In the 2016 case Augustus v. ABM Security Services, Inc., the California Supreme Court held that state law prohibits on-duty and on-call rest periods. During required rest periods, employers must relieve their employees of all duties and relinquish any control over how employees spend their break time.

The employees, in this case, were security guards who were required to keep their pagers and radio phones on, to remain vigilant and to be available to respond to calls, even during their rest breaks. Quoting the definitions of “rest” from several dictionaries, the Court found that “rest” essentially means free from work.  Since the law provides “rest” breaks, employees must be provided these breaks relieved of all work duties, or the “rest break” has not been provided.

Establish and Follow Policies to Reduce Risk

The consequences for the failure to provide either meal or rest breaks free from any work duties can be costly.  For each missed break the employee is owed an additional hour of pay, and this additional pay must be provided in the employee’s next paycheck.  It’s clear that an ongoing failure to provide these breaks can result in significant liability and many lawsuits that arise from these failures are often class actions that lead to significant financial exposure to the employer.

The rules concerning meal and rest breaks are complicated and subject to a number of exceptions.  The best place to start in reducing the risk from these claims is having a well-drafted policy that properly reflects the rules relating to meal and rest breaks, and to follow all steps to ensure that breaks are provided, taking no action that might deter or discourage employees from taking them and making sure they are relieved from all work duties while on the break.

 

View Topic: Employment Risk Consulting Tagged With: Breaks, California, Employee, Employment, Employment Law, Hour, Law, Legal, Meal Breaks, Nonprofit, Rest, Wage

Complying with Federal, State and Municipal Minimum Wage Laws

March 28, 2017

Across the country, advocates are seeking to raise the minimum wage to $15 per hour. Frustrated by political roadblocks to gain minimum wage increases on a federal level, the “Fight for $15” campaign and other interest groups, have met with success increasing the minimum wage in California and New York, as well as major cities including Seattle, Portland and Chicago. Since 2014, 27 states and the District of Columbia have increased the minimum wage, and 34 municipalities have increased the minimum wage. In an effort to block cities and counties from adopting minimum wage increases, some state legislatures are attempting to pre-empt a municipalities’ authority to enact minimum wage increases, and courts are weighing in on the lawfulness of these preemptive state efforts.

While this political battle will surely continue for some time, employers need to remain aware of the current and applicable minimum wage for workers, especially those employers who have workers who perform work in multiple locations, such as home health care workers. As a general rule, when there are multiple laws covering an employment term, like minimum wage, the employer’s obligation is to follow all the laws, and in the event of a conflict between the laws, follow the one that is most beneficial to employees. It is also important to note that some laws set different minimum wages based on the size of the employer or have exemptions for certain categories of employees. Additionally, some public agencies establish living wage rates for government contractors that are different than minimum wage rates set for the jurisdiction. Compliance requires a reading of the local minimum wage ordinances and contracts with public agencies to understand these nuances in coverage.

Let’s consider an example. An employer in San Francisco is covered by the following minimum wage laws:

 

Despite the federal and California minimum wage being lower, a San Francisco employer must pay at least $13 per hour to an employee who is not a “government supported” employee who works more than two hours in the city limits a week. A review of the city ordinance reveals the definition of an “employee” as someone who performs at least two hours of work in the city and includes a definition of “government supported employee.” If the employee works in multiple jurisdictions, the employer needs to either pay the highest wage rate, or track hours worked in each jurisdiction separately on time cards and pay stubs.  Multiple wage rates complicate the calculation of the “regular rate” for overtime purposes, requiring a separate calculation based on the hours worked in each workweek.

Employers have to also be aware that changes to the minimum wage rate affect other employment law obligations in certain states. For example, in California, the minimum wage is included in the formula for the overtime exempt salary minimum and split-shift differentials. Because of these ever-changing obligations, employers should do a calendar review of compensation rates to make sure that changes to the minimum wage are reflected appropriately in employees’ rates of pay.

 

[1] http://www.epi.org/minimum-wage-tracker/

[2] http://nlc.org/sites/default/files/2017-02/NLC%20Preemption%20Report%202017.pdf

[3] http://library.amlegal.com/nxt/gateway.dll/California/administrative/chapter12rminimumwage?f=templates$fn=default.htm$3.0$vid=amlegal:sanfrancisco_ca$anc=JD_12R.3

View Topic: Employment Risk Consulting Tagged With: Employee, Employment, Exempt, Federal, Law, Minimum Wage, Municipal, Non Exempt, Nonprofit, Pay, Pay Rate, Risk Alert, Salaried, Salary, State, Wage, Wages

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