The Cost of Non-Compliance

Penalties Stack Up Fast

Premium Pay — The Base Penalty

If an employer fails to provide a compliant meal or rest break, the employee is owed one additional hour of pay at their regular rate for each workday the violation occurs.

Violation Penalty Per Employee, Per Day
Missed or non-compliant meal break1 hour of premium pay
Missed or non-compliant rest break1 hour of premium pay
Both violations on the same day2 hours of premium pay (maximum)

But Penalties Stack

Meal and rest break violations rarely exist in isolation. They trigger a cascade of additional penalties:

  • PAGA Civil Penalties: $100–$200 per employee per pay period
  • Wage Statement Penalties: $50–$100 per employee per pay period (up to $4,000 per employee)
  • Waiting Time Penalties: Up to 30 days of daily wages per terminated employee
  • Interest & Attorney’s Fees: Prevailing employees recover fees — which often exceed the underlying claim

Real-World Exposure Example

A restaurant with 50 employees, each earning $20/hour, with 30 employees missing one meal break per week over one year:

Premium Pay (LC 226.7)$260,000
PAGA Penalties (LC 2699)$130,000 – $260,000
Wage Statement Penalties (LC 226)$65,000 – $130,000
Waiting Time for 10 Termed Employees$60,000
Total Estimated Exposure$515,000 – $710,000+

Cost Calculator

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