California Court Rules In Landmark Wage Suit

Law360, New York (April 16, 2007, 12:00 AM EDT) -- In a decision that has major implications for wage-and-hour lawsuits in California, a court has ruled that pay received to compensate for a missed lunch break should be classified as wages, rather than as a penalty for the company.

The California Supreme Court ruled Friday in Murphy v. Kenneth Cole that the remedy for missed rest or lunch breaks stipulated by California state labor law should be classified as wages, and is therefore governed by a three-year statute of limitations.

The ruling overturns a verdict by...
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