California Meal & Rest Break Premium Pay
Understand California's meal and rest break requirements and comply with premium pay regulations.
In California, non-exempt employees must receive uninterrupted meal and rest breaks. When these breaks are not provided, employers are required to pay premium wages. In 2022, the California Supreme Court ruled that this premium pay constitutes wages, not penalties.
This classification triggers additional requirements for how the pay is calculated, reported, and paid.
Meal and rest break requirements
Meal breaks
- 30-minute unpaid break for shifts over 5 hours
- Can be waived if the shift is 6 hours or less
- Second 30-minute unpaid break required for shifts over 10 hours
- Can be waived if the first break was taken and the shift is no longer than 12 hours
Rest breaks
- 10-minute paid break for every 4 hours (or major fraction) worked
Some employee types, such as domestic or farm workers, may follow separate rules under industry-specific Wage Orders.
Premium pay for missed breaks
If an employee does not receive a required break, the employer must pay:
- 1 additional hour of pay for each day a meal break is not provided
- 1 additional hour of pay for each day a rest break is not provided
Maximum total: 2 hours of premium pay per day
Premium pay is classified as wages
In Naranjo v. Spectrum Security Services, Inc. (2022), the California Supreme Court clarified that missed-break premiums are wages. This decision carries three key implications for payroll handling:
1. Calculate using the regular rate of pay
Employers must use the employee’s regular rate of pay, not their base hourly rate. This rate includes:
- Nondiscretionary bonuses
- Commissions
- Piece-rate earnings
Note: This is the same rate used to calculate overtime in California.
2. Include on the pay statement
Premium pay must be listed as a separate line item on the employee’s wage statement for the pay period in which it is earned.
3. Pay timely
Because premiums are classified as wages, they must be paid:
- Same-day for terminated employees
- Within 72 hours for employees who resign without notice
Failure to include this pay in the final check may result in waiting time penalties.
Summary
In California, employers are responsible for tracking and paying missed meal and rest breaks as wages. Premiums must be:
- Calculated at the regular rate of pay
- Reported on the pay statement
- Paid promptly, especially at separation
Partners building payroll products for California companies should ensure their systems support these requirements.