Three-Year Statute of Limitations Applies to Meal and Rest Period Violations of California Labor Code

On April 13, 2007, the California Supreme Court issued its opinion in Murphy v. Kenneth Cole Productions, Inc. (Murphy), holding that the remedy provided by California Labor Code Section 226.7 (Section 226.7) for rest break and meal period violations is in the nature of "premium pay" intended to benefit the employee and not a penalty intended to punish the employer. Accordingly, claims brought under Section 226.7 are subject to a three-year limitation period, rather than the one-year limitation period applicable to a claim for penalties. Section 226.7 requires one hour of pay to nonexempt and inside commissioned 1 employees for each workday they are not provided meal or rest periods mandated by California law.

This decision is important to employers with nonexempt and inside commissioned exempt employees in California (together, "nonexempt" for the remainder of this LawFlash), and other California employees who potentially may be misclassified as exempt. By expanding the limitation period that applies to claims brought under Section 226.7, the Court's decision likely will increase the already-growing number of rest and meal period class actions.

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