Employers Cannot Get a Break From the California Supreme Court

On April 16, 2007, the California Supreme Court issued its highly anticipated opinion in Murphy v. Kenneth Cole Productions regarding whether the “one hour of pay” liability imposed by Labor Code §226.7 for failing to provide meal periods or rest breaks is a wage or a penalty. Rejecting the considered view of 22 of the 24 California appellate justices who had previously considered the issue, the Supreme Court unanimously held that the one hour of pay remedy is in the nature of a wage. This ruling significantly increases the potential liability California employers face for meal and rest period violations.