Written by Ron Chandler
Miller, Kaplan, Arase & Co., LLP
P: 818.769.2010 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

A recent law has taken effect in the Hotel/Restaurant industry in California.  This law is called the “meal break” penalty law, which comes about when an employee works more than 10 hours per day, and is then entitled to two meal breaks.  If the employee misses at least one of these meal breaks, he or she is entitled to one hour of pay.  Another recent law requires four hours of pay if an employee does not receive two consecutive days off after having worked 5 consecutive days.  Many industries, like the Hotel/Restaurant industry require contributions for all hours worked, or required to be paid for.  Under this situation, contributions would be required for these hours because they are “required to be paid for.”  Another example of this is in the motion picture industry where there are “guarantees” in which hours are paid, but not necessarily worked.  Be aware that times are changing and the collective bargaining agreements should define specifically what hours are required to be paid for and we as auditors need to also be on the alert for these changes.  

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