CALIFORNIA LABOR FED'N v. Industrial Welfare Com.

63 Cal. App. 4th 982, 74 Cal. Rptr. 2d 397
CourtCalifornia Court of Appeal
DecidedMay 7, 1998
DocketA079402
StatusPublished
Cited by9 cases

This text of 63 Cal. App. 4th 982 (CALIFORNIA LABOR FED'N v. Industrial Welfare Com.) 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
CALIFORNIA LABOR FED'N v. Industrial Welfare Com., 63 Cal. App. 4th 982, 74 Cal. Rptr. 2d 397 (Cal. Ct. App. 1998).

Opinion

63 Cal.App.4th 982 (1998)

CALIFORNIA LABOR FEDERATION, AFL-CIO et al., Plaintiffs and Appellants,
v.
INDUSTRIAL WELFARE COMMISSION, Defendant and Respondent.

Docket No. A079402.

Court of Appeals of California, First District, Division Five.

May 7, 1998.

*984 COUNSEL

Law Offices of Carroll & Scully, Charles P. Scully II and Donald C. Carroll for Plaintiffs and Appellants.

*985 Daniel E. Lungren, Attorney General, Randall P. Borcherding and Marguerite Stricklin, Deputy Attorneys General, for Defendant and Respondent.

Sheppard, Mullin, Richter & Hampton and Richard J. Simmons as Amici Curiae on behalf of Defendant and Respondent.

OPINION

PETERSON, P.J.

Appellants the California Labor Federation, AFL-CIO, a union officer, and individual employees (collectively CLF) contend the trial court erred in concluding that the Industrial Welfare Commission (IWC) acted properly when the IWC amended certain of California's overtime pay requirements, to make those overtime rules more closely comply with the provisions of federal law. Specifically, CLF contends the IWC erred in generally adopting the federal rule that overtime should be paid to employees when they work more than 40 hours per week, rather than after 8 hours on each workday. CLF contends the IWC exceeded the scope of its legal authority, because CLF contends certain sections of the Labor Code will become inoperative or moot as a result of the IWC's action. CLF also contends the IWC could not amend its overtime rules, because the Legislature had previously declined to do so. In addition, CLF contends the IWC orders are not supported by an adequate statement of the basis for the IWC action. Finally, CLF contends the IWC could not eliminate the eight-hour overtime rule because the rule had previously existed, subject to various changing exceptions, for seventeen years.

We agree with the trial court's ruling which rejected these arguments and affirm.

I. FACTS AND PROCEDURAL HISTORY

Appellant CLF filed a petition for a writ of mandate in the trial court, seeking to overturn the actions of the IWC in adopting amendments to certain of its wage orders. The amendments in question provide that in certain industries, employees must be paid overtime at a rate of 150 percent of their regular pay rate, i.e., time and a half pay, after forty hours of work in one week, but not necessarily after eight hours of work in any one day as the IWC had generally required, with notable exceptions, during the period from 1980 through 1997.

After extensive briefing and a hearing, the trial court in June 1997 denied the request for a writ of mandate, because it concluded "there is no basis to *986 conclude that the IWC was not free, under California law to modify its Wage Order[s]...." CLF filed a timely notice of appeal. The amendments in question went into effect on January 1, 1998, during the pendency of this appeal.

II. DISCUSSION

We affirm the trial court's ruling, because we agree with its legal analysis and conclusion that nothing prevented the IWC from changing its overtime rules by amending its wage orders. In order to explain this conclusion more fully, we must first briefly recount the history and role of the IWC, as part of the broader history of the federal and state overtime laws. We then discuss our limited standard of review in this proceeding. Finally, we more specifically address the claimed errors argued by appellant CLF, and conclude we must affirm the trial court's decision which upheld the IWC orders in issue here.

A. History of the IWC and Federal and State Overtime Rules

In 1913, the IWC was established as a quasi-legislative body of five members appointed by the Governor, with two members being representatives of labor, two members from management, and one public or neutral member. (Labor Code,[1] §§ 70 & 70.1.)

The IWC was initially given jurisdiction to regulate only the working hours of women and minors. In this role, from 1913 to 1973, the IWC ordered that women and minors could not work more than eight hours per day unless they received overtime pay from their employer for each hour worked after eight hours in that day. (See Industrial Welfare Com. v. Superior Court (1980) 27 Cal.3d 690, 700 [166 Cal. Rptr. 331, 613 P.2d 579] (Industrial).)

There was no similar state overtime requirement for adult male workers, although in 1938 those workers were covered by different overtime rules under the provisions of the federal Fair Labor Standards Act of 1938 (FLSA) (29 U.S.C. §§ 201-219). The FLSA requires that most workers, including most adult male workers, must receive overtime pay after working 40 hours per week, but the FLSA does not require overtime pay after any particular number of hours per day, i.e., it does not set a daily overtime rule as the IWC had done for women and minors since 1913. (See 29 U.S.C. § 207(a); 29 C.F.R. § 778.602(a) (1997).) The anomalous result was that women, but not men, had to be paid overtime after eight hours work in any one day.

*987 This disparity in the treatment of overtime pay based upon the sex of the employee led to legal problems, including claims of paternalism and unlawful sex discrimination, especially after the passage in 1964 of title VII of the federal Civil Rights Act of 1964 (42 U.S.C. § 2000e et seq.) (Title VII). (See Industrial, supra, 27 Cal.3d at p. 700.)

In Homemakers, Inc., of L.A. v. Division of Indus. Welf. (9th Cir.1974) 509 F.2d 20, 21-23, the Ninth Circuit Court of Appeals directly held the IWC's wage orders requiring overtime after eight hours each day were illegal and unenforceable, because they only applied to women, in violation of Title VII.

It became clear that California would, therefore, have to modify its system of overtime regulation. In an attempt to remedy this problem, the California Constitution[2] was amended to provide, in the present article XIV, section 1, that the IWC should have broad jurisdiction over the working conditions of all workers, not simply those of a certain sex or age; that constitutional provision now provides: "The Legislature may provide for minimum wages and for the general welfare of employees and for those purposes may confer on a commission legislative, executive, and judicial powers." (Italics added.) The Legislature also amended the Labor Code in order to give the IWC jurisdiction over adult male employees, as well as women and children. (See Industrial, supra, 27 Cal.3d at p. 701.)

The IWC then considered, since it must treat all employees equally, whether it should simply conform its overtime rules to the federal 40-hour-week standard for all employees derived from the FLSA, or should instead extend its stricter 8-hour-day rule from women and children to all employees, as a state standard more restrictive than the federal FLSA standard. The IWC decided to modify the eight-hour overtime rule for many industries.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pacific Fertility Cases
California Court of Appeal, 2022
Doe v. Butler Amusements, Inc.
71 F. Supp. 3d 1125 (N.D. California, 2014)
Union of American Physicians v. Brown
195 Cal. App. 4th 691 (California Court of Appeal, 2011)
No. 04-57134
491 F.3d 1053 (Ninth Circuit, 2007)
Burnside v. Kiewit Pacific Corp.
491 F.3d 1053 (Ninth Circuit, 2007)
Small v. Superior Court
55 Cal. Rptr. 3d 410 (California Court of Appeal, 2007)
Bearden v. U.S. Borax, Inc.
41 Cal. Rptr. 3d 482 (California Court of Appeal, 2006)
Collins v. Overnite Transportation Co.
129 Cal. Rptr. 2d 254 (California Court of Appeal, 2003)
Henley v. Philip Morris Inc.
113 Cal. Rptr. 2d 494 (California Court of Appeal, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
63 Cal. App. 4th 982, 74 Cal. Rptr. 2d 397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-labor-fedn-v-industrial-welfare-com-calctapp-1998.