California Supreme Court

Ferra v. Loews Hollywood Hotel, LLC

July 15, 202111 Cal. 5th 858

Summary

The California Supreme Court held that the phrase "regular rate of compensation" in Labor Code section 226.7(c) means the same thing as "regular rate of pay" in section 510(a). Accordingly, meal, rest, and recovery-period premiums must include all nondiscretionary payments for work performed, not merely the employee's base hourly wage. The court also rejected prospective-only application and reversed the Court of Appeal for further proceedings.