Labor Code 226.7: National Steel and Shipbuilding Co. v. Sup. Ct. (Godinez)

The Fourth District has dropped a bomb on wage and hour law in California.  Labor Code section 226.7 has long been the subject of dispute between plaintiff and defense sides of the bar over whether it is a "penalty" or a "wage."

After years of thin authority suggesting it was a "wage," the DLSE itself, and the First District pushed the tide in the other direction.  Now, the Fourth District has created a split of authority in the state.

This Court holds that it is both a penalty and a wage.  (Relying on the kind of legislative history that is currently deemed irrelevant.)  According to this holding, the four year statute of limitations applies, and restitution is available under the UCL.

What a mess!