Cornier v. Paul Tulacz, DVM PC

30 P.3d 1210, 176 Or. App. 245, 7 Wage & Hour Cas.2d (BNA) 541, 2001 Ore. App. LEXIS 1246
CourtCourt of Appeals of Oregon
DecidedAugust 22, 2001
Docket98-C006081; A109419
StatusPublished
Cited by9 cases

This text of 30 P.3d 1210 (Cornier v. Paul Tulacz, DVM PC) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cornier v. Paul Tulacz, DVM PC, 30 P.3d 1210, 176 Or. App. 245, 7 Wage & Hour Cas.2d (BNA) 541, 2001 Ore. App. LEXIS 1246 (Or. Ct. App. 2001).

Opinion

*247 SCHUMAN, J.

Plaintiff brought this action against her former employer alleging, among other claims not relevant to this appeal, that during her employment defendant failed to pay her overtime, a violation of ORS 653.261, and that when she quit defendant willfully failed to pay her accumulated vacation wages, a violation of ORS 652.140. In addition to the unpaid sums, plaintiff also sought two statutory penalties, one for each violation. The trial court held that employer violated both statutes, but imposed a penalty only for failing to pay vacation wages. Plaintiff appeals, assigning as error the denial of the second penalty. We reverse.

Plaintiff, a veterinary technician, worked for defendant, an animal clinic. When plaintiff worked overtime, defendant paid “straight time” instead of the “time and a half’ required under ORS 653.261(1). 1 Further, when she voluntarily left defendant’s employ, defendant willfully failed to pay her for three days of accrued vacation. That failure violated ORS 652.140(2), which requires that all unpaid wages are due at the time of termination. Defendant conceded these violations, and the trial court granted plaintiffs claim for $1,111.19 in unpaid overtime and $180 in unpaid vacation. It also granted plaintiffs claim for $1,800 as a penalty for defendant’s violation of the “unpaid wages at termination” statute, an award that defendant does not appeal, but denied plaintiffs claim for a second $1,800 award as a penalty for violating the overtime statute. The second penalty, the court reasoned, would create a “double recovery” and exceed the statutory “cap” on penalties. Plaintiff appeals from that denial, maintaining that defendant violated two separate statutes, each with its own distinct penalty. Defendant maintains that a single penalty statute with a specified “cap” applies to both violations, because both are subsumed in a single misdeed by employer: failing to pay plaintiff what employer owed her when she left.

*248 The relevant statutes fall into two categories: statutes dealing with failure to pay wages owed at termination and statutes dealing with failure to pay overtime. The “wages owed at termination” statutes are ORS 652.140(2), which provides that “all wages earned and unpaid at the time of quitting become due and payable immediately,” and ORS 652.150, which provides a penalty for employers who do not make the payment required by ORS 652.140:

“If an employer willfully fails to pay any wages or compensation of any employee whose employment ceases, as provided in ORS 652.140 * * *, then, as a penalty for such nonpayment, the wages or compensation of such employee shall continue from the due date thereof at the same hourly rate for eight hours per day until paid or until action therefor is commenced; provided, that in no case shall such wages or compensation continue for more than 30 days from the due date[.]”

ORS 652.150. The overtime statutes are ORS 653.261, under which employers must pay “one and one-half times the regular rate of pay” for work in excess of 40 hours in one week, and ORS 653.055, which provides a penalty for employers who do not pay at that rate:

“(1) Any employer who pays an employee less than the wages to which the employee is entitled under ORS 653.010 to 653.261 is liable to the employee affected:
“(a) For the full amount of the wages, less any amount actually paid to the employee by the employer; and
“(b) For civil penalties provided in ORS 652.150.”

Plaintiff would paraphrase subsection (b) to mean that the failure to meet minimum wage or overtime requirements immediately exposes an employer to a penalty separate and distinct from the penalty for wages unpaid at termination and that the separate penalty is calculated as “provided in ORS 652.150.” Defendant and the trial court read subsection (b) as a legislative decision to bundle subminimum wage and inadequate overtime offenses with nonpayment at termination offenses into a single penalty provision under which all employer underpayments or nonpayments, regardless of whether they occur during or after employment, are considered together for purposes of the statutory penalty cap.

*249 Defendant’s interpretation suffers from a fatal flaw. By its own unambiguous terms, ORS 652.150 imposes a penalty on an employer who “fails to pay any wages or compensation of any employee whose employment ceases * * ORS 652.150 enforces ORS 652.140, which requires employers to pay, upon termination, “all wages earned and unpaid.” Thus, an employer who fails timely to pay an employee unpaid or underpaid overtime when that employee quits or is fired is subject to the penalty provision of ORS 652.150, with or without ORS 653.055(l)(b).- If the purpose of that latter statute were merely to bring unpaid overtime claims under the penalty umbrella of ORS 652.150, it would be utterly redundant; those claims are already there. On the other hand, if the purpose is to create a separate and independent penalty for minimum wage or overtime offenses when those offenses occur prior to termination, then in enacting it the legislature did not engage in a needless act.

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Cite This Page — Counsel Stack

Bluebook (online)
30 P.3d 1210, 176 Or. App. 245, 7 Wage & Hour Cas.2d (BNA) 541, 2001 Ore. App. LEXIS 1246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cornier-v-paul-tulacz-dvm-pc-orctapp-2001.