Waiting Time Penalties And Claims for Unpaid Meal And Rest Breaks
California Labor Code section 226.7, subdivision (c), states: If an employer fails to provide an employee a meal or rest . . . period in accordance with a state law . . . the employer shall pay the employee one additional hour of pay at the employee's regular rate of compensation for each workday that the meal or rest or recovery period is not provided.. Labor Code § 226.7 thus describes an employer’s requirements with respect to meal and rest periods and provides that the employer shall pay the employee one additional hour of pay for each workday that the meal or rest period is not provided.
California Labor Code section § 203 allows for recovery of waiting time penalties by an employee who has separated from his employment without being paid and provides for a claim to be filed “for these penalties at any time before the expiration of the statute of limitations on an action for the wages from which the penalties arise.” Typically, waiting time penalties are awarded in cases where an employer fails to pay a worker's wages in full when due upon termination or resignation, unless there is a good faith dispute about whether the employee is due the wages in question. For instance, if an employee resigns without notice and his employer doesn't pay his full wages due within 72 hours as required by law, then the employee will be entitled to penalties equal to his typical daily wages per each day that the employer delays payment and up to 30 days.
The California Supreme Court has held that “a section 226.7 action is brought for failure to provide meal and rest periods, not for the ‘nonpayment of wages.’” (Kirby v. Immoos Fire Protection, Inc. (2012) 53 Cal.4th 1244, 1255. Because a section 203 claim is purely derivative of ‘an action for wages from which the penalties arise,’ it cannot be the basis for an award when the underlying claim is not an action for wages.” (Ling v. P.F. Chang’s China Bistro, Inc. (2016) 245 Cal.App.4th 1245, 1261.) This means that an employer should not be held liable for waiting time penalties for failure to provide meal and rest breaks.
California Labor Code section § 203 allows for recovery of waiting time penalties by an employee who has separated from his employment without being paid and provides for a claim to be filed “for these penalties at any time before the expiration of the statute of limitations on an action for the wages from which the penalties arise.” Typically, waiting time penalties are awarded in cases where an employer fails to pay a worker's wages in full when due upon termination or resignation, unless there is a good faith dispute about whether the employee is due the wages in question. For instance, if an employee resigns without notice and his employer doesn't pay his full wages due within 72 hours as required by law, then the employee will be entitled to penalties equal to his typical daily wages per each day that the employer delays payment and up to 30 days.
The California Supreme Court has held that “a section 226.7 action is brought for failure to provide meal and rest periods, not for the ‘nonpayment of wages.’” (Kirby v. Immoos Fire Protection, Inc. (2012) 53 Cal.4th 1244, 1255. Because a section 203 claim is purely derivative of ‘an action for wages from which the penalties arise,’ it cannot be the basis for an award when the underlying claim is not an action for wages.” (Ling v. P.F. Chang’s China Bistro, Inc. (2016) 245 Cal.App.4th 1245, 1261.) This means that an employer should not be held liable for waiting time penalties for failure to provide meal and rest breaks.