Meal Penalties in California: What Employers Need to Know
California’s meal penalty laws require employers to provide proper meal breaks or face financial consequences. Ensure compliance to avoid hefty penalties and legal complications.
By Brad Nakase, Attorney
Email | Call (800) 484-4610
Have a quick question? We answered nearly 2000 FAQs.
Table of Contents
What does meal penalty mean in California?
Imagine you’ve agreed to let an employee off the hook for everything during their 30-minute lunch break, but you still want them to remain on site. The worker is satisfied with the arrangement, and you don’t think it’s necessary to pay them, because you’re unaware of the meal penalty in California. The worker sues you two years down the road, and you end up having to pay them.
This is all hypothetical, but breaking the lunch break restrictions in California may land you in a tough spot. Unfortunately, there is potential for misunderstanding due to the complexity of California’s break legislation. Find out how much it will cost to violate California’s meal break law with our handy guide. We’ll also talk about some situations in which your business might run into trouble with California officials.
When you break the California meal law, you’ll have to pay the meal break penalty. Before you can understand the punishment and how to avoid it, you need to know all the rules involved in breaking the meal period law in California.
Your workers have the right to a 30-minute meal break if their workday exceeds five hours, as stated in section 512 of the California labor code and in IWC Orders. On top of that, if your staff work more than 10 hours a day, you should provide them with a 30-minute second meal break.
The recommended timing for the first meal break is at the conclusion of the fifth hour of work, with the second break occurring around the conclusion of the tenth hour.
All non-exempt employees are subject to the California break regulation, with a few exceptions. Workers in the healthcare industry in California who are subject to IWC Orders 4 and 5 may have some limited leeway to leave the premises while on the clock. Additionally, the California meal break regulation may not apply to certain businesses due to collective bargaining agreements. Among these sectors are:
- Construction work
- Security detail
- Film production business
- Commercial drivers
- Utility businesses (gas, electricity, etc.)
Off-Duty and On-Duty California Meal Break Requirements
The California meal break revolves around time, but it’s vital to know the rules for when you’re on and off the clock.
Employees in California have the right to a legitimate break from any and all work-related responsibilities, as stated in the state’s meal break law. Additionally, you should give up all power over what your employee does. So, it’s not your place to tell an employee how to spend their lunch hour.
Not meeting these standards will turn the meal period into “on duty,” which means your organization is required to compensate workers. Although the California meal break discourages taking breaks while on the clock, it does provide some leeway for businesses whose jobs need employees to be physically present at all times.
An organization that specializes in security may, for instance, insist that a guard be present throughout lunch. The security firm and the guard must have a formal agreement that specifies the terms of the arrangement in this instance. But the employee can always write down and cancel the agreement.
A “meal waiver” in California is an agreement between a business and employee to forego a meal break and operate under separate regulations. The lunch break rule allows for the mutual waiver of the first and second meal breaks between employers and employees.
Giving up the first break is fairly simple. All that is required is for the employer and employee to put their signatures on an agreement that specifies the regulations to follow and the grounds for forgoing the meal break. Employees whose shifts are six hours or shorter are the only ones eligible to have their first meal break waived.
Only if you did not waive the first meal break can you waive the second one. However, with mutual agreement, both the employer and the employee might forego the second break. If a worker’s shift lasts more than 12 hours, though, you won’t be able to skip their second lunch break.
To sum up, you can’t waive both on the same shift, regardless of whether the employee shifts satisfy the waiver standards. Either number one or number two will do. The employee has the right to revoke this agreement at any time by sending a written notice, just like with any other mutual agreement pertaining to California break law.
How Does a Company Meet Its Responsibility?
Giving workers 30 minutes isn’t enough to fulfill your responsibility to enforce the California meal penalty. As we already said, you need to let your workers off the hook and not be involved during that time.
Furthermore, it is imperative that no employee carries out any duties connected to their job at that time. Crucially, in the case of Brinker Restaurant Corp. v. Superior Court class action, the California Supreme Court ruled that the pay order and breaks controlling statute disapproves businesses compelling employees to forgo meal breaks or implementing incentives to skip the meal break.
To ensure that your staff follows the break law, you should take all necessary measures. You could find yourself in a sticky situation if your staff, whether you realize it or not, do work-related tasks at lunch.
You have an obligation to compensate your employees if you are aware, or reasonably should be aware, that they are working during meal breaks. It is crucial to enforce the break laws strictly and ensure that they cannot be skirted.
How Does California’s Meal Penalty Work?
Now that we’ve covered the ground rules, let’s get into the meat of our piece. What does the California meal penalty look like?
If you violate the lunch break law in California, you will have to pay the meal penalty. This sum might cover things like attorney fees and personnel wages. These fees will be discussed in more depth shortly.
You could be facing the meal penalty if you do the following:
- Do not allow any breaks for meals at all
- Permit meal breaks that are less than thirty minutes
- Insist that workers remain on-site in the absence of mutual agreement
- Intentionally allow workers to work while they are eating
- Without mutual consent, cancel the lunch break
- Coerce workers into skipping lunch breaks (by instituting a rigid scheduling schedule that conflicts with workers’ lunch breaks, for instance)
- Entice workers to be productive during their lunch break by providing incentives.
- You choose to disregard the employee’s request to cancel the waiver agreement.
- Don’t give workers their first and second breaks if they work more than 10 hours.
You should consult with attorneys who are knowledgeable in California labor law to help you identify potential problems. After all, this is only the beginning of a long list.
Keep in mind that each and every employer in California is ultimately responsible for closing any gaps and charting a path toward complete compliance. This means that you should never get tired of helping your workers understand the rules about breaks and how important it is to follow them.
How Much is the California Meal Break Penalty?
For each violation or missed break, the California meal premium pay—also known as the meal break penalty—is equal to one hour of the employee’s regular hourly rate of pay.
Consider a business that employs twenty people and pays them $25 per hour. A heavy fine awaits this business if it disobeys the break regulation, which mandates that all employees remain on the premises during lunch breaks. If the bad behavior lasts for a year, workers can get a lump sum.
Now, let’s calculate:
The number of weeks in a year = 52. With a typical 8-hour workday and five days a week off, workers are eligible for 260 lunch breaks in a year. The total lunch premium pay will be an astounding $130,000, or $6,500 per employee (260*$25). Depending on the number of workers, the number might be enormous.
Compensation Process
There is an alternative to going to court for the worker to receive their money. A mutually agreeable settlement outside of court may be possible. However, if you are unable to reach a settlement outside of court, the legal system may proceed as planned.
Within three years following the alleged breach, the employee has the option to submit a claim with the Division of Labor Standards Enforcement (DLSE). The employee is required to provide proof of the violation’s timing, as well as other relevant information, such as:
- Email, voicemail, or text message
- Recording audio or video
- Statements from witnesses
- Company correspondence
You will have to pay the meal penalty if the court finds that you broke the break law in any way.
There are additional expenses that your business could face. In the case of overdue wages, for instance, the employee may be able to collect prejudgment interest. This is the variable interest that builds up on the premium payment as the case progresses.
If a contract is in place, the interest rate can be 10% per annum, in some cases. A little lower rate of 7% applies in the absence of an employment contract. Additionally, you can be liable for the worker’s punitive damages, mental anguish, and legal expenses.
Even though it might sound bad, going to court doesn’t make it easier for workers to get more fines and penalties. Employees now have more trouble proving the alleged infringement, according to the California Court of Appeal’s ruling in the class action Naranjo v. Spectrum Security Services, Inc.
The Financial Impact of Discrimination and Retaliation
When an employee files a lawsuit or demands compensation, retaliation or discrimination against them can only make matters worse. Terminating an employee’s employment, arbitrarily reducing their pay, or threatening them are all examples of discrimination and retaliation.
Here, the worker has the option to go to the office of the labor commissioner and lodge a complaint regarding retaliation and discrimination. According to sections 98.6 and 230 of the California Labor Code, you could be subject to legal action if the authorities establish that discrimination or retaliation occurred. An additional consequence might be a civil fine of up to $10,000 that you would have to pay to the employee.
Common Questions: California’s Meal Penalty
1. How Much Does the California Meal Penalty Cost in 2024?
In California, the meal penalty, also known as meal premium pay, is equal to one hour of pay at the normal hourly rate for every meal break that is missed.
2. Can the California Meal Penalty Be Waived?
There is no way to get out of paying for meals in California. The meal break, however, might be waived if both you and the employee agree to do so in writing.
3. How Does California’s Meal Penalty Work?
Any employee clocking in more than six hours is required to take a 30-minute unpaid lunch break. A second 30-minute meal break is provided to employees whose shifts exceed 10 hours. Employers have a responsibility to allow their employees time to engage in activities that are unrelated to their work.
4. Does California Have Any Penalties for Missed Rest Breaks?
For any rest period that is either skipped or violated, your employer will be held financially responsible under California’s rest break statute. A premium pay period is like adding one more hour to an employee’s regular wages.
Have a quick question? We answered nearly 2000 FAQs.
See all blogs: Business | Corporate | Employment
Most recent blogs:
See all blogs: Business | Corporate | Employment