Client issue
CRA’s Labor & Employment Practice was engaged by a group of hotels to assess potential exposure arising from alleged underpayments of missed meal and rest break premiums, overtime compensation, and sick pay for a class of hourly non-exempt workers.
CRA approach
The CRA team provided a comprehensive review of employee attestations and premium payments contained in weekly payroll data revealed that most missed meal and rest break premiums had been paid. The analysis also showed that relevant pay types were generally included in regular rate of pay calculations. As a result, there appeared to be limited underpayment of overtime compensation and meal and rest break premiums.
CRA also assisted with the production of timekeeping and payroll data for the opposing expert and developed estimates of potential exposure and related penalties.
Client impact
CRA’s estimates of unpaid premiums, sick pay, wage-statement penalties, and PAGA-related exposure helped inform the employer’s mediation and negotiation strategy, contributing to a favorable resolution.
