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Two Important Wage and Hour Appellate Court Rulings for CALPASC Members to Review

Wednesday, January 2, 2019  
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Two Important Wage and Hour Appellate Court Rulings for CALPASC Members to Review

 

  1. In Hernandez v. Pacific Bell Telephone Company, the 3rd Appellate District ruled that a voluntary program for employees to commute in company vehicles did not require payment of wages for the commute time. CALPASC members who provide company vehicles for employees should review this case. It is a very fine line whether employees commuting in company vehicles should be paid for that time. You should consult with your labor attorney or HR consultant to ensure that your policy is clear. You can see a copy of the ruling HERE.
  2. In Kaanaana v. Barrett Business Services, the 8th Division of the 2nd Appellate District ruled that employees who were not clearly provided a 30 minute meal period free of duties, were not only entitled to a premium hour of pay, but also the pay for the portion of the 30 minutes the employees were required to work. This may not sound like much, averaging 4 minutes per day per employee. The wages due over 2 and half years were only $175 per employee, plus interest. The penalty, though, for failure to pay minimum wage is approximately $12,500 per employee. If the employee is subsequently terminated, another $2,500 in waiting time penalties may apply. This case is hopefully distinguishable from much of construction or supply operations, in that the employees here, were on a production line, and were required to be at their stations ready to work when the conveyor belt started exactly 30 minutes after the lunch break began. Their supervisors began rounding them up several minutes before the 30 minutes of meal period had elapsed. CALPASC members should review this decision with their labor attorney or HR consultant, to make sure supervisors do not infringe on the employee's freedom to have a full 30 minute meal period. You can see a copy of the ruling HERE.

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