Holly L. Sutton (left) and Kevin L. Jones of Farella Braun + Martel. (Courtesy photos) Navigating California Wage Statement Penalties After 'Naranjo v. Spectrum'
The California Supreme Court, in Naranjo v. Spectrum Security Services Inc. clarified that an employer is not liable for statutory penalties for inaccurate wage statements when it had a good faith and reasonable belief that the issued statements were accurate. The holding offers employers a mechanism to avoid certain penalties.
June 07, 2024 at 12:18 PM
6 minute read
Employment Law
On May 6, 2024, the California Supreme Court, in Naranjo v. Spectrum Security Services Inc. clarified that an employer is not liable for statutory penalties for inaccurate wage statements when it had a good faith and reasonable belief that the issued statements were accurate. The court's holding offers employers a mechanism to avoid penalties reserved for a "knowing and intentional" failure to report accurate wage statements in California wage and hour class actions.
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