Compliance Stuff

Target Corporation recently defeated class certification in a case pending in United States District Court for the Central District of California in  Montgomery, et al. v. Target Corp., et al.  The decision, authored by the Honorable Jesus G. Bernal, highlights the importance of the evidence presented in a motion for class certification, particularly in federal court. In this case, the plaintiffs alleged, among other things, that meal break premiums were not paid at the regular rate of pay (RROP) , that managers adjusted meal break time punches to cover up non-compliant breaks, that Target required on-premises rest breaks for a period of time, that employees were required to use their personal cell phones to look up items for customers without reimbursement, that employees were forced to clock out for meal breaks and continue working during the busy holiday periods, and that employees were forced to wait long periods to clock in for work without pay. In support of the motion ...

In California, the “regular rate of pay” is used to calculate overtime pay, paid sick leave under the Healthy Workplaces, Healthy Families Act, meal and rest period premiums, split shift premiums, and reporting time pay. Employers often assume the regular rate of pay is simply the employee’s base hourly rate. However, if an employee is paid multiple rates for different work, or receives other forms of compensation, their “regular rate of pay” will be more than the base rate. Employers who ignore this distinction risk costly wage and hour claims, PAGA actions, and Labor Commissioner audits. What Is the Regular Rate of Pay? The regular rate of pay is the true hourly rate an employee earns, factoring in most types of compensation—not just their base wage . Employers must calculate this rate accurately any time pay employees more than a base hourly rate. This concept is particularly important in California, which imposes stricter requirements than federal law in some situations. To calcula...