California Wage Theft Decision Clarifies Meal-Break Premium Calculations

The California Supreme Court issued a decision this week confirming that premium pay for missed meal and rest breaks must be calculated using the "regular rate of pay" — the same broader figure used for overtime calculations under state law. Employers with significant non-discretionary bonus, commission, or shift differential components will see meaningful increases in exposure, particularly in large hourly workforces. Plaintiffs' counsel are expected to revisit open PAGA actions and pending class claims to reflect the ruling. HR and payroll teams should audit meal-break premium calculations for the past four years and consider proactive remediation where underpayments are identified.