A California HR Reminder for Nonexempt Employees
The holidays are a great time to celebrate your team’s hard work and dedication. Before planning your holiday party or special event, we recommend you take a moment to make sure your celebration does not create wage and hour issues for your nonexempt (hourly) employees. Specifically, ensure you’re compliant with Holiday Party Meal Breaks for California Employees.
Even during celebrations, the same meal and rest break rules apply. Employees who work more than five hours must receive a 30-minute unpaid meal break. Employees who work at least three and a half hours must be provided a paid 10-minute break for every four hours worked or major fraction thereof.
If the party is mandatory, and nonexempt employees attend and then return to work without taking their regular meal break, they are considered to have missed that required break. This can happen when the event takes place during the middle of the workday and employees go back to their duties right after the celebration. Even though they may have been served lunch and were not performing their usual tasks during the event, they were still under the employer’s control.
The California Meal Period Premium
In California, an employee is considered to be under the employer’s control when they are required to remain on the employer’s premises, attend a mandatory activity, or otherwise cannot use the time freely for their own purposes. Because the meal period must be off duty and uninterrupted, a mandatory event does not meet that standard.
In this case, employers must pay an additional one hour of pay for each nonexempt employee who was not provided an off-duty meal period. This additional hour, known as a meal period premium, compensates employees for the missed opportunity to take a true break as required by California law.
Holiday Party Mandatory vs. Voluntary Attendance
The difference between mandatory and voluntary attendance is also important. If the party is mandatory, employees must be paid for all time spent at the event. If it takes place after regular working hours, that time may result in overtime pay. If the party is voluntary, we recommend including a simple statement in the invitation or flyer that states attendance is optional. This best practice can help prevent misunderstandings about pay and break requirements.
Make Sure You Plan Ahead
Treat your company celebration like any other work activity when it comes to wage and hour compliance, following company policy and expectations. We recommend planning ahead to allow proper breaks, track time if attendance is required, and communicate expectations clearly. A little preparation helps ensure your holiday celebration stays positive and compliant with everyone.
Happy and compliant holidays from HRDelivered—supporting employers with practical solutions that make compliance simple all year long.
Need help reviewing your event plans or pay practices before the holidays?
Contact the HRDelivered HR Consultant team at hr@hrdelivered.com for guidance and compliance support.