California’s Supreme Court Makes It Harder For Employees to Recover Penalties In Wage Statement Claims

On May 6, 2024, California’s Supreme Court, in a rare and surprising “employer friendly” decision, held that an employer can avoid penalties under California’s wage statement law, Cal. Lab. Code § 226, if it reasonably and in good faith believed it was providing a complete and accurate wage statement in compliance with the requirements of Cal. Lab. Code § 226(a).