California Court Sets Limits for Reporting Time Pay and Clarifies When Split Shift Pay is Due

In a case of first impression, the California Court of Appeal has clarified the scope of an employer’s obligation to pay reporting time and split shift premiums under the California Industrial Welfare Commission’s Wage Order No. 4-2001 (“Wage Order”). The Court ruled that an employee was not entitled to reporting time pay for attending scheduled meetings that ran shorter than expected because he worked at least half the scheduled time, even though the employee worked less than two hours. This is contrary to the long-held enforcement position of the California Division of Labor Standards Enforcement. The Court also held an employee was not entitled to split shift pay because the employee’s total compensation exceeded the minimum wages required under the Wage Order. Aleman v. AirTouch Cellular, No. B231142 (Cal. Ct. App. Dec. 21, 2011). Finally, the Court dismissed a second employee’s claims as barred by a prior release agreement with the employer.