Wage Law

While the DLSE is fighting to pass regulations "clarifying" that the hour of pay due under Labor Code 226.7 is a penalty, rather than a wage, the individual hearing officers handling Berman Hearings that involve meal period and rest period claims are apparently split. Some are following the proposed regulations, while others are following the U.S. District Court decision in Tomlinson. Reportedly, this discretion has been permitted after various internal meetings at the DIR. Thus, whether you get one year of claims, or three years of claims, depends entirely upon the luck of the draw when your claim is assigned.

The peculiar thing is that, whether you get one year (if it's a penalty), or three years (if it's a wage) the employees' awards are being reported on a W-2, and they are having payroll taxes and other withholdings deducted.