Bains v. Department of Industrial Relations, Division of Labor Standards Enforcement

244 Cal. App. 4th 1120, 198 Cal. Rptr. 3d 772, 26 Wage & Hour Cas.2d (BNA) 47, 2016 Cal. App. LEXIS 112
CourtCalifornia Court of Appeal
DecidedFebruary 16, 2016
DocketC076700
StatusPublished
Cited by4 cases

This text of 244 Cal. App. 4th 1120 (Bains v. Department of Industrial Relations, Division of Labor Standards Enforcement) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bains v. Department of Industrial Relations, Division of Labor Standards Enforcement, 244 Cal. App. 4th 1120, 198 Cal. Rptr. 3d 772, 26 Wage & Hour Cas.2d (BNA) 47, 2016 Cal. App. LEXIS 112 (Cal. Ct. App. 2016).

Opinion

Opinion

DUARTE, J.

-Prunes are harvested from trees and must be dried to be marketed. Two administrative rules set forth different overtime pay rates for agricultural workers who harvest fruit and for those who process fruit for market; generally speaking, the latter receive more generous overtime pay. This case plumbs the line dividing the workers subject to each respective rule, as applicable to the agricultural practices described herein.

Plaintiffs Jaswant Bains and Piara Gosal, farmers, appeal from an adverse judgment after a court trial in which they sought a declaration that certain of their workers were not subject to the more generous of two wage orders issued by the Department of Industrial Relations, Division of Labor Standards Enforcement (Department or DLSE, as context indicates).

Plaintiffs first contend the trial court lacked jurisdiction because they themselves failed to exhaust administrative remedies. However, we conclude that by submitting the matter for decision by the trial court, plaintiffs invited any such error.

*1123 Plaintiffs next challenge the trial court’s conclusion on the merits. As we will explain, we find the trial court correctly interpreted the relevant wage orders. Some workers harvest the prunes from the trees, whence they are transported to fixed structures where other workers process them for marketing by drying them. Neither the fact the fixed structures abut the orchards nor the fact that the fruit must be dried in order to be marketed alters this distinction in function between the workers, a distinction the Department has determined merits a difference in providing overtime wages.

Accordingly, we shall affirm the judgment.

BACKGROUND

The Industrial Welfare Commission has issued a number of wage orders that in part prescribe the overtime rates due to various classes of workers, and the DLSE enforces these orders. (See generally Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004, 1026 [139 Cal.Rptr.3d 315, 273 P.3d 513] (Brinker); Tidewater Marine Western, Inc. v. Bradshaw (1996) 14 Cal.4th 557, 561-562 [59 Cal.Rptr.2d 186, 927 P.2d 296].) The two wage orders at issue in this case, Industrial Welfare Commission wage orders Nos. 13 and 14, are formal administrative regulations. (See Cal. Code Regs., tit. 8, §§ 11130, 11140.) The parties do not dispute in this case that wage order No. 13 would provide more generous overtime rates than would wage order No. 14. More details about each of these wage orders will be provided, post.

Pretrial Procedure

On April 2, 2013, plaintiffs sued for declaratory relief seeking an adjudication of which of the two wage orders applied to certain workers. To demonstrate the existence of a justiciable controversy, the complaint attached a letter dated November 9, 2012, from the Department to plaintiffs’ counsel, contending that wage order No. 13 applied to certain of plaintiffs’ workers. Plaintiffs sought a declaration resolving the interpretive dispute so that they would know how to compensate those workers during the upcoming 2014 agricultural season without threat of penalty.

The Department’s answer admitted the gist of the dispute, but in part asserted plaintiffs had failed to exhaust administrative remedies. The Department’s trial brief also raised the issue of failure to exhaust administrative remedies, and contended the complaint was premature for this reason. Plaintiffs replied that requiring them to risk citation for underpayment of appropriate overtime wages would be onerous and would in any event ultimately lead to a superior court action to resolve what they characterized as a legal, not factual, dispute.

*1124 Trial

At the court trial, the parties stipulated that various exhibits would be admitted into evidence, and they are included in the clerk’s transcript.

Wage order No. 14 in part covers workers engaged in “[t]he harvesting of any agricultural or horticultural commodity, including but not limited to, picking, . . . field pacldng, and placing in field containers or in the vehicle in which the commodity will be hauled, and transportation on the farm or to a place of first processing or distribution.” (Cal. Code Regs., tit. 8, § 11140, subd. 2(D)(4), italics added.) Thus, this wage order, generally speaking, covers employees engaged in a variety of planting, watering, tending, and gathering activities, but not in activities changing the nature of the crops.

Wage order No. 13 covers “all persons employed in industries preparing agricultural products for market, on the farm,” with specified exceptions. (Cal. Code Regs., tit. 8, § 11130, subd. 1.) Briefly summarized as relevant here, wage order No. 13 covers workers engaged in “any operation performed in a permanently fixed structure ... on the farm ... for the purpose of preparing agricultural. . . products for market. . . and includes all operations incidental thereto.” (Cal. Code Regs., tit. 8, § 11130, subd. 2(H), italics added.) Thus, this wage order, generally speaking, covers employees engaged in altering the crops in some manner to facilitate their marketing. 1

The only trial witness was a Department employee called by plaintiffs.

Facundo Rosas has been a detective with the Labor Commissioner’s bureau of field enforcement since 2006, and inspects farms in the Sacramento Valley. Bains and Gosal dry their prunes from fruit harvested in their own orchards. Prunes are harvested by shaking trees to dislodge fruit (so-called “French prunes” or fruit still on the tree), which is then collected in bins that are moved to a prune dryer. Prunes are dehydrated in a fixed structure. Rosas disagreed when asked if drying was part of the harvesting process.

Detective Rosas believed that workers in the drying facility were not harvesters and therefore were entitled to the more generous overtime benefits set forth in wage order No. 13. When Rosas spoke to Bains, Bains asserted those workers were to be treated the same as those “working in the orchards” *1125 who were subject to wage order No. 14 and who therefore received less generous overtime benefits.

Detective Rosas was shown a 2006 document (exhibit 10 at trial) that was “a guide” prepared by the Department for classifying activities pertaining to the two wage orders. The portion of the guide relevant to wage order No. 13 listed activities including “sorting, grading, moisturizing, drying/fumigating, packaging, [and] shipping.” Rosas testified that exhibit 10 was “only a guide” and further testified that in the past — “[m]aybe back in the 50’s” — orchardists may have dried prunes in the field, but “nobody” uses that method now, and he had never seen that done in his lifetime. Rosas agreed that one part of the guide pertaining to prunes said “growing, spraying, thinning, picking and drying applies under” wage order No. 14, but testified that was just “a guideline.”

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Bluebook (online)
244 Cal. App. 4th 1120, 198 Cal. Rptr. 3d 772, 26 Wage & Hour Cas.2d (BNA) 47, 2016 Cal. App. LEXIS 112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bains-v-department-of-industrial-relations-division-of-labor-standards-calctapp-2016.