EmploymentQuestion 962 of 1605
The California Supreme Court clarified how meal and rest 'premium' pay under §226.7 must be calculated. It is based on:
a.A flat $15 per premium
b.The employee's 'regular rate of compensation,' including nondiscretionary bonuses, not just the base hourly wage
c.The federal minimum wage
d.Only the base hourly wage, ignoring bonuses
Explanation
In Ferra v. Loews Hollywood Hotel, the California Supreme Court held that the 'regular rate of compensation' used for §226.7 meal and rest premiums is calculated the same way as the 'regular rate of pay' for overtime, meaning it must include nondiscretionary bonuses and similar pay, not merely the base hourly wage. Employers that paid premiums at only the base rate underpaid workers.
Law Reference: Labor Code §226.7; regular rate for premiumsPractice all 1605 questions free — no signup required.
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