The following is not meant to be legal advice.
In Murphy v. Kenneth Cole Productions, the California Supreme Court increased the cost to employers of failing to provide non-exempt employees with meal and rest breaks as required by California Labor Code section 226.7.
California Labor Code section 226.7 provides that if an employer fails to provide its non-exempt employees with meal periods or rest breaks, the employee is entitled to one hour of pay for each missed break. In Murphy v. Kenneth Cole Productions, it was decided that one hour of pay is a wage subject to a three year look back recovery period.
The ruling makes payment of the additional hour of pay subject to tax withholding and employer taxes. Penalties may attach if an employer neglects to pay upon termination all additional hours of pay for missed meal and rest breaks that occurred over the prior three years.
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