JANUARY/FEBRUARY 2006

I. LEGISLATIVE/REGULATORY UPDATE

Proposed Meal and Rest Break Period Regulations Rescinded

For over a year, California employers have awaited the passage of regulations governing administration of, and penalties associated with, employee rest and meal breaks. After several delays, the California Department of Industrial Relations (“DIR”) announced that the Division of Labor Standards Enforcement (“DLSE”) would not file the regulations by the January 13, 2006 deadline. Instead, the DLSE plans to issue “a new package” of proposed meal and rest period regulations at a “later date,” beginning a completely new rule making process.

John Rea, acting Director of the DIR, stated as follows:

“In reviewing the hundreds of comments we received, it has become apparent that we might further fine tune these regulations to better serve the working men and women of California and provide better guidance for their employers. Regulations remain necessary in order to provide enforcement officials with clarity relating to very distinct changes in the law. It is imperative, therefore, that we proceed on a fresh track.”

New regulations are expected during the next several months. In the meantime, California employers must continue to comply with all existing statutes and wages orders relating to rest and meal periods.

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