Department of Fair Employment & Housing v. Verizon California, Inc.

133 Cal. Rptr. 2d 258, 108 Cal. App. 4th 160, 2003 Cal. Daily Op. Serv. 3634, 2003 Daily Journal DAR 4623, 8 Wage & Hour Cas.2d (BNA) 1181, 172 L.R.R.M. (BNA) 2651, 2003 Cal. App. LEXIS 623
CourtCalifornia Court of Appeal
DecidedApril 28, 2003
DocketG029912
StatusPublished
Cited by10 cases

This text of 133 Cal. Rptr. 2d 258 (Department of Fair Employment & Housing v. Verizon California, Inc.) 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
Department of Fair Employment & Housing v. Verizon California, Inc., 133 Cal. Rptr. 2d 258, 108 Cal. App. 4th 160, 2003 Cal. Daily Op. Serv. 3634, 2003 Daily Journal DAR 4623, 8 Wage & Hour Cas.2d (BNA) 1181, 172 L.R.R.M. (BNA) 2651, 2003 Cal. App. LEXIS 623 (Cal. Ct. App. 2003).

Opinion

*162 Opinion

SILLS, P. J.

I

Our state’s family leave act 1 allows employees in firms over a certain size to have up to 12 weeks off a year to care for an immediate family member with a “serious health condition,” or simply because of the employee’s own serious health condition. 2 The right is for time off without fear of losing one’s job, 3 but not necessarily paid time off. The family leave act is quite *163 explicit that, with one exception, an employer is not required to pay for time off for leave taken under the act.

The one exception is if the employee would have the right to be paid for the time anyway. If the employee has “accrued vacation leave or other accrued time off’ or “other paid . . . time off negotiated with the employer,” the employee may use that time for family leave, and get paid for it.* ** 4

The present appeal involves a dispute as to whether an employee, being treated by a chiropractor for a bad back and having 300 hours sick leave, had the right to take the full 12 weeks of family leave with pay but without providing verification of injury from a medical specialist. Specifically, Denise Harris, an employee of what is now Verizon, requested family leave for low-back problems on an intermittent basis in the summer and fall of 1998. There is no doubt that she was allowed the full time off and no hint that she was penalized by way of demotion or otherwise for taking the time off.

For the first four weeks Harris was paid for the time off, but in July Verizon sent her a letter saying that she needed a medical report from an orthopedist or neurologist showing total incapacitation. She never provided one. Nor did she provide X-rays from her chiropractor; indeed, it is undisputed that her chiropractor never took an X-ray of her.

Harris is an hourly worker covered by a collective bargaining agreement negotiated by the Communications Workers of America with Verizon. In *164 August 1998 Harris filed a union grievance, alleging that Verizon had violated the part of the collective bargaining agreement governing paid time off for sickness and disability, i.e., article 32 of the agreement. The grievance was settled with Verizon paying Harris for any absence related to her back injury and which occurred prior to its letter telling her a specialist report was required (July 8, 1998). However, about a year and one-half later, in January 2000, the California Department of Fair Employment and Housing filed a complaint alleging that Verizon’s failure to pay Harris for all absences after July 8, 1998 was a violation of the state’s family leave act.

Verizon defended on, among other grounds, the proposition that Harris’s state law claim was preempted by section 301 of the federal Labor Management Relations Act of 1947 (also known as Taft-Hartley, see 29 U.S.C. § 185). After a bench trial the court awarded Harris $1,092 for lost pay and another $1,000 for emotional distress. The court rejected the federal labor law preemption argument, reasoning (to quote from the statement of decision): “On the affirmative defense of preemption due to a possible involvement of federal labor law, the court finds that the references, if any required, to the collective bargaining agreement are so slight that they do not involve the court in interpreting matters more properly left to the federal court system. The court likens it more to consulting a calendar to ascertain dates than to performing some more detailed exercise in contract interpretation, which can at times be exceedingly complex and is a matter best left to the federal court.” Further, the trial court entered an injunction requiring Verizon “to allow [employees] to use accrued paid time in place of time off without pay” during any approved leave pursuant to the family leave act, “if such persons are ‘otherwise eligible’ under the collective bargaining agreement.” Verizon then filed this appeal.

II

The terrain covering the issue of federal labor law preemption of state claims when those claims require the interpretation of collective bargaining agreements has been fairly well mapped out. The usual starting place is Allis-Chalmers Corp. v. Lueck (1985) 471 U.S. 202 [105 S.Ct. 1904, 85 L.Ed.2d 206]. There a union employee filed a state court lawsuit claiming insurance bad faith where the insurance was provided by a group health and disability plan, which had been incorporated by reference into a collective bargaining agreement. The employee sustained back injuries from carrying a pig to a pig roast. For a while he received disability benefits under the plan, but, supposedly, the employer ordered the plan insurer to periodically cut off his payments on various pretexts. Further, the insurer required periodic *165 reexamination by different doctors, which the employee thought was harassment. (Id. at p. 205 [105 S.Ct. at p. 1908].) His claims were only paid after he instituted the bad faith litigation in state court. While the two lower state courts agreed the case was preempted by federal law, the Wisconsin Supreme Court disagreed, and the United States Supreme Court then took the case, and held that it was preempted.

The federal high court took the state high court to task for its conclusion that the state bad faith tort was independent of “federal contract interpretation.” (Allis-Chalmers Corp. v. Lueck, supra, 471 U.S. at p. 214 [105 S.Ct. at pp. 1912-1913].) The Wisconsin Supreme Court had made “assumptions about the scope of the contract provision which it had no authority to make under state law.” (Ibid., italics added.) Specifically, it had incorrectly assumed that the collective bargaining agreement contained no implied rights about the manner of the payment of benefits. (Id. at p. 215 [105 S.Ct. at p. 1913].) Not so; the collective bargaining agreement established a joint plant insurance committee which had the authority to resolve disputes about “ ‘ any insurance-related issues.’ ” (Ibid.) Since the “extent” of any implied duty of good faith and the contractual promise to pay “ultimately depended] upon the terms of the agreement between the parties,” both questions were “tightly bound with questions of contract interpretation that must be left to federal law.” (Id. at p. 216 [105 S.Ct. at p. 1913].)

This last comment would later be reiterated as the court’s essential holding as a rule of substantial dependence. That is, when state law claims are “substantially dependent” on an analysis of a collective bargaining agreement, there is preemption. (See Allis-Chalmers Corp. v. Lueck, supra, 471 U.S. at p. 220 [105 S.Ct. at p.

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133 Cal. Rptr. 2d 258, 108 Cal. App. 4th 160, 2003 Cal. Daily Op. Serv. 3634, 2003 Daily Journal DAR 4623, 8 Wage & Hour Cas.2d (BNA) 1181, 172 L.R.R.M. (BNA) 2651, 2003 Cal. App. LEXIS 623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-fair-employment-housing-v-verizon-california-inc-calctapp-2003.