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Court Finds Meal and Rest Period Compensation is a Wage

In a March 7, 2013 decision in the case of Abad v. General Nutrition Systems Inc. U.S. District Court Case No. 8:09-CV-00190-JVC-RNB, U.S. District Court Judge James V. Selna ruled that Meal and Rest Period Compensation is a Wage. The Plaintiffs in that matter are represented by Jeffrey Spencer of the Spencer Law Firm.

Defendant GNC filed a Motion for Summary Judgment arguing that in light of the California Supreme Court decision Kirby v. Immoos Fire Protection, Inc., 53 Cal.4th 1244, (2012) and the U.S. District Court Decision Jones v. Spherion Staffing LLC, LA CV11-06462 JAK, 2012 WL 3264081 (C.D. Cal. Aug. 7, 2012) meal and rest compensation was a penalty, not a wage and could not be the basis of a claim for waiting time penalties under California Labor Code §§201-203or for inaccurate wage statements under California Labor Code §226.

The Court rejected GNC’s reasoning and declined to follow Jones v. Spherion Staffing LLC. The Court found that the holding in Murphy v. Kenneth Cole Productions, Inc., 40 Cal. 4th 1094, (2007) that the additional hour of wages owed for violation of California Labor Code §226.7 (failure to provide meal and rest periods) is a wage and not a penalty is controlling. Therefore Plaintiffs can bring claims for waiting time penalties and inaccurate wage statements based upon GNC’s failure to pay meal and rest compensation and its failure to include meal and rest compensation in the plaintiff’s wage statements. A copy of the complete order is available here:

Abad v. GNC Abad v. GNC (59 KB)