Employment: $280,000 Labor Code Fee Award Affirmed, After Remand From California Supreme Court, Where Plaintiff Employee Recovered On Missed Break Claims

Naranjo Decision Changed The Landscape.

            In Betancourt v. OS Restaurant Services, LLC, Case No. B293625 (2d Dist., Div. 8 Aug. 25, 2022) (unpublished), the 2/8 DCA had to revisit its denial of attorney’s fees to a plaintiff employee alleging missed rest and meal break violations and waiting penalties even though the lower court had awarded fees of $280,000 to plaintiff.  The reason for the revisit was the California Supreme Court’s decision in Naranjo v. Spectrum Security Services, Inc., 13 Cal.5^th 93, 102 (2022), which held that extra pay for missed breaks constitutes “wages” that must be reported on employment wage statements and give rise to Labor Code fee exposure.  Given this change in the judicial landscape, the 2/8 DCA panel reinstated the $280,000 fee award—even though plaintiff’s compensatory settlement acceptance was only $15,375.  This shows how statutory fee-shifting provisions need to be considered wisely when litigating a case where wage/hour claims can trigger fee exposure.

            BLOG NOTE:  This decision was certified for publication on September 12, 2022.