GUSTAVO NARANJO et al., Plaintiffs and Appellants, v. SPECTRUM SECURITY SERVICES, INC., Defendant and Appellant., 13 Cal. 5th 93

Summary

HOLDINGS: [1]-Because premium pay for missed meal and rest breaks under Lab. Code, § 226.7, compensated employees for the work performed during a break period and therefore constituted wages within the meaning of Lab. Code, §§ 200, subd. (a), 203, 226, penalties could be available for an employer's alleged failure to timely pay or report such payments pursuant to Lab. Code, §§ 201, 202, to employees who were terminated or who resigned; [2]-The rate of prejudgment interest applicable to amounts due for failure to provide meal and rest breaks was the default rate of 7 percent under Cal. Const., art. XV, § 1, because Lab. Code, § 218.6, incorporating the contract claim interest rate in Civ. Code, § 3289, subd. (b), was inapplicable and the contract rate could not be directly applied on the basis of an argument that contracts of employment incorporated mandatory statutory duties.