Jackpot Harvesting Co. v. Superior Court

Labor Code section 226.2, effective January 1, 2016, addresses the compensation of piece-rate employees for rest and recovery periods and other nonproductive time on the job (rest/NP time). Subdivision (b) provides a safe harbor for an employer that, before 2016, failed to properly compensate piece-rate workers for rest/NP time; an employer that pays its employees for previously unpaid rest/NP time accrued between July 1, 2012 and December 31, 2015, is entitled to “an affirmative defense to any claim . . based solely on the employer’s failure to timely pay the employee the compensation due for [rest/NP time] . . . for time periods prior to and including December 31, 2015.” In 2014, Lainez filed suit on behalf of himself and others, against Jackpot, which performs harvesting and farming activities. Lainez alleged that Jackpot compensated him on a piece-rate basis and sought unpaid minimum wages for rest/NP time, interest, liquidated damages, and statutory penalties. Six months later, section 226.2 became law. Jackpot complied with section 226.2(b) by making back payments to Lainez and 1,138 other current and former employees. The superior court denied Jackpot summary judgment, concluding that the statutory language was unclear and does not provide a defense for claims accruing before July 2012. The court of appeal concluded that under the statute's unambiguous language, an employer complying with the statute has an affirmative defense against any employee claims for rest/NP time accruing before and including December 31, 2015. View "Jackpot Harvesting Co. v. Superior Court" on Justia Law