California Manufacturers Ass'n v. Industrial Welfare Commision

109 Cal. App. 3d 95, 167 Cal. Rptr. 203, 1980 Cal. App. LEXIS 2145
CourtCalifornia Court of Appeal
DecidedJuly 24, 1980
DocketCiv. 19582
StatusPublished
Cited by21 cases

This text of 109 Cal. App. 3d 95 (California Manufacturers Ass'n v. Industrial Welfare Commision) 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 Manufacturers Ass'n v. Industrial Welfare Commision, 109 Cal. App. 3d 95, 167 Cal. Rptr. 203, 1980 Cal. App. LEXIS 2145 (Cal. Ct. App. 1980).

Opinions

Opinion

MORRIS, J.

The California Manufacturers Association (association), representing more than 500 private employers, appeals from a judgment denying association’s petition for a writ of mandate by which it sought to invalidate four orders of the Industrial Welfare Commission (commission). The challenged orders regulate the wages, hours, and conditions of employment in the following industries: Order 1-76 regulates the manufacturing industry; order 3-76 regulates the canning, freezing, and preserving industry; order 4-76 regulates professional, technical, [103]*103clerical, mechanical, and similar occupations; and order 8-76 regulates industries handling products after harvest.

The association seeks to invalidate the aforesaid orders, contending that: (1) the commission failed to conduct the investigation required by Labor Code section 1178 prior to establishing the wage boards; (2) the orders do not include adequate statements of basis as required by Labor Code section 1177; (3) the orders are preempted by the National Labor Relations Act and federal labor law, except as to minimum wages; (4) the commission failed to consult with California Occupational Safety and Health Standards Board (Cal/OSHA) as required by Labor Code section 1173, and regulated in areas in which Cal/OSHA has exclusive jurisdiction; (5) the commission failed to comply with the California Environmental Quality Control Act; and (6) the commission’s failure to treat all collective bargaining agreements equally constitutes a denial of equal protection of the law.

I. Investigation

When this appeal was first heard, this court held that the commission had failed to conduct the investigation required by Labor Code section 11781 prior to calling the wage boards to consider wages, hours, and working conditions, and the judgment upholding the order and denying the petition was reversed. The California Supreme Court granted a hearing.

Thereafter, the Supreme Court decided California Hotel & Motel Assn. v. Industrial Welfare Com. (1979) 25 Cal.3d 200 [157 Cal.Rptr. 840, 599 P.2d 31], in which the court considered the validity of order 5-76, relating to the public housekeeping industry, which had been issued at the same time as the orders considered herein and as a result of similar proceedings. Subsequent to the issuance of its opinion in California Hotel & Motel Assn., the Supreme Court retransferred this cause to this court for reconsideration in the light of that opinion.

In California Hotel & Motel Assn, the court examined the commission’s duty under section 1178 in the light of the history of the commission’s statutory authority and concluded as follows: “In summary, the Legislature extended the authority of the commission to determine the wages, hours, and working conditions of all employees, [104]*104men as well as women and minors, except outside salesmen. But before the commission could update, extend, change, amend, repeal, or othewise modify its previous orders, rules, regulations, or policies, which covered only women and minors, to exercise its extended authority, the Legislature required the commission to undertake a full review of such orders, rules, regulations, or policies. The Legislature perceived an urgent need for the commission to do so ‘forthwith.’ These three legislative pronouncements together relieved the commission, in the present instance, of meeting any separate requirement under section 1178 that the commission ‘investigate and find’ that wages, hours, or working conditions were inadequate or prejudicial. Order 5-76 is the product of the 1973-1974 mandate in section 1173.17 The commission did not promulgate the order in violation of section 1178.” (California Hotel & Motel Assn. v. Industrial Welfare Com., supra, 25 Cal.3d 200, 209. Italics added.)

Orders 1-76, 3-76, 4-76 and 8-76 were also adopted pursuant to the 1973-1974 legislative mandate. Therefore, the Supreme Court’s decision resolves the investigation issue before this court in favor of the sufficiency of the investigation for purposes of these orders. The association asks this court to issue an advisory opinion to provide guidance on the issue of what constitutes a proper section 1178 investigation for future orders. This we decline to do.

II. Statements of Basis

California Hotel & Motel Assn, also provides some guidance for the determination of the adequacy of the statements of basis pursuant to section 1177, which provides that “Each order of the commission shall include a statement as to the basis upon which the order is predicated and shall be concurred in by a majority of the commissioners.”

In California Hotel & Motel Assn, the Supreme Court held that the statements of basis initially promulgated by the commission with respect to its 1976 orders were inadequate under section 1177. The court outlined the purposes of the statement of basis and defined the standard by which a statement of basis is to be judged. The judgment was reversed with directions to the trial court to issue a writ of mandate [105]*105compelling the commission to take further action consistent with the opinion, within 120 days of the finality of the opinion. In order to preserve the status quo, the court ordered that order 5-76 should remain operative “pending correction of deficiencies” in the statement of basis. (California Hotel & Motel Assn. v. Industrial Welfare Com., supra, 25 Cal.3d 200, 215-216.)

With respect to the orders which are the subject of the instant proceeding, the trial court initially held that the statements of basis were inadequate. However, instead of issuing a writ of mandate invalidating the orders, the court retained jurisdiction and sent the matter back to the commission with directions to prepare and submit new statements of basis.2 Otherwise, the trial court denied the relief sought under the association’s petition for writ of mandate.

In obedience to the court’s directive, the commission issued new statements of basis on April 29, 1977, with respect to these orders. The trial court determined that the new statements of basis were adequate and complied with section 1177, except for section 16 (relating to elevators) of each order. The petition for writ of mandate was denied except as to section 16, as to which the petition was granted, and the commission was ordered to vacate and rescind section 16 of each of the four orders.

We now examine the new statements of basis, applying the standard enunciated by the Supreme Court in California Hotel & Motel Assn.

The Supreme Court noted in California Hotel & Motel Assn, that a statement of basis serves several functions. It satisfies the legislative mandate; it facilitates meaningful judicial review; it subjects the agency action to more informed scrutiny by the Legislature, the regulated public, and others; it induces agency action that is reasonable, rather than arbitrary or capricious; it introduces an element of predictability into the administrative process; and it stimulates public confidence by promoting the reality and appearance of rational decision making. (California Hotel & Motel Assn. v. Industrial Welfare Com., supra,

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California Manufacturers Ass'n v. Industrial Welfare Commision
109 Cal. App. 3d 95 (California Court of Appeal, 1980)

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109 Cal. App. 3d 95, 167 Cal. Rptr. 203, 1980 Cal. App. LEXIS 2145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-manufacturers-assn-v-industrial-welfare-commision-calctapp-1980.