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California Supreme Court Holds That Meal and Rest Break Premiums Must Include Commissions, Bonuses and Other Non-Discretionary Pay

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Most employers in California know that they are required to provide non-exempt employees with a 30-minute meal break whenever the employee works more than five hours, a second 30-minute meal break if the employee works more than ten hours and a 10-minute rest break for every four hours (or major fraction thereof) an employee works. Most employers probably also know that if they fail to provide an employee with these required meal and/or rest breaks, the employee is entitled to a premium equal to one additional hour of pay. However, until recently, when the California Supreme Court issued its opinion in Ferra v. Loews Hollywood Hotel, LLC, almost nobody knew that these meal and rest break premiums needed to include the value of any commissions, bonuses and other non-discretionary pay the employee earns. Click here to learn more.