Excel Corp. v. Kansas Department of Human Resources

747 P.2d 179, 12 Kan. App. 2d 417, 28 Wage & Hour Cas. (BNA) 787, 1987 Kan. App. LEXIS 1370
CourtCourt of Appeals of Kansas
DecidedDecember 10, 1987
DocketNo. 60,171
StatusPublished
Cited by1 cases

This text of 747 P.2d 179 (Excel Corp. v. Kansas Department of Human Resources) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Excel Corp. v. Kansas Department of Human Resources, 747 P.2d 179, 12 Kan. App. 2d 417, 28 Wage & Hour Cas. (BNA) 787, 1987 Kan. App. LEXIS 1370 (kanctapp 1987).

Opinion

Six, J.:

Excel Corporation (plaintiff-appellant) appeals the decision of the district court which affirmed the Department of Human Resources’ finding that Excel was liable to Monte K. Russell on his claim for wages under the Kansas Wage Payment Act, K.S.A. 44-313 et seq.

Excel contends that; (1) the hearing officer’s findings are contrary to the evidence and to the law of Kansas as to employment contracts; and (2) the hearing officer and trial court erred in [418]*418interpreting K.S.A. 44-319(a)(3). This court finds no error and affirms the judgment.

Monte K. Russell worked at the Excel meat processing facility in Dodge City from June 13 to July 9, 1984. His job as a shank boner required him to use several pieces of specialized equipment, including a mesh arm guard, a steel apron, a mesh glove, and a meat hook.

The equipment was stored in a company provided locker at the job site. Excel owned the equipment and issued it to employees with the exception of the rubber boots and ceramic steel knife sharpeners (items not in issue). Excel attempted to keep the equipment and reuse it. It was Excel’s policy when an employee left to issue the same equipment to a new employee. Excel asserted all rights of ownership to the equipment in question. Russell was not permitted full possession or control over the equipment.

One morning when reporting for work, Russell discovered that his locker door was standing open with several pieces of safety equipment missing. The only items remaining in the locker were two hard hats and a hair net. He reported the theft and was informed that if he found the lock from his locker to demonstrate the locker had been burglarized, he would not have to pay the replacement cost of the missing items. He secured from Excel replacement equipment because he knew that he would not be allowed to work without it. In so doing, he signed an employee purchase card which authorized Excel to withhold the cost of the missing items from his pay. On returning to his locker, he found the broken padlock and turned it in. When Russell received his pay, a deduction had been made for the missing items. He spoke to the personnel office and was informed that the money would be deducted from his check until the items were paid for. Russell stopped working at Excel on July 9, 1984. When Russell left Excel’s employment, Excel kept the items of equipment Russell had purchased to replace those which had been stolen from the Excel locker room and paid for through the deductions from his wages.

On August 6, 1984, Russell filed a claim for wages with the Kansas Department of Human Resources (KDHR), claiming $185 in wages owed to him. The KDHR determined that Russell [419]*419should not have been required to pay for the safety equipment and awarded him $165.94 in wages plus $17.98 in interest. Excel appealed to the Shawnee County District Court, which affirmed the KDHR decision. Excel now appeals to this court.

SCOPE OF REVIEW

The legislature has codified the applicable scope of review in the act for judicial review and civil enforcement of agency actions, K.S.A. 77-601 et seq. K.S.A. 77-621 provides in relevant part:

“(c) The court shall grant relief only if it determines any one or more of the following
“(4) the agency has erroneously interpreted or applied the law;
“(7) the agency action is based on a determination of fact, made or implied by the agency, that is not supported by evidence that is substantial when viewed in light of the record as a whole, which includes the agency record for judicial review, supplemented by any additional evidence received by the court under this act.”

This case involves the interpretation of a statute, K.S.A. 44-319, and an administrative regulation, K.A.R. 49-20-l(a)(2).

“The interpretation of a statute is a question of law, and it is the function of the court to interpret a statute to give it the effect intended by the legislature. In determining questions of law, the trial court may substitute its judgment for that of the agency only where the statute is clear and where the administrative agency is erroneous. Ordinarily, the interpretation placed on a statute by the administrative agency charged with its enforcement is entitled to a great deal of judicial deference and may be of controlling significance. [Citations omitted.]” D S G Corp. v. Shelor, 239 Kan. 312, 315, 720 P.2d 1039 (1986).

K.S.A. 44-319 AND K.A.R. 49-20-l(a)(2)

Counsel agreed at oral argument that the statute- regulation interpretation issue is one of first impression.

Excel contends that the KDHR hearing officer’s findings are not supported by the evidence and that the hearing officer erroneously interpreted K.S.A. 44-319 and K.A.R. 49-20-l(a)(2). K.S.A. 44-319 provides in part:

“(a) No employer may withhold, deduct or divert any portion of an employee’s wages unless: (1) The employer is required or empowered to do so by state or federal law; (2) the deductions are for medical, surgical, or hospital care or service, without financial benefit to the employer, and are openly, clearly and in due course recorded in the employer’s books; or (3) the employer has a signed [420]*420authorization by the employee for deductions for a lawful purpose accruing to the benefit of the employee.” (Emphasis added.)

K.A.R. 49-20-l(a)(2) specifically identifies certain deductions which do not accrue “to the benefit of the employee”:

“The following deductions shall not be considered authorized deductions ‘accruing to the benefit of the employee’ within the meaning of K.S.A. 44-319(a)(3): “(A) Deductions made for cash and inventory shortages; breakage; returned checks or bad credit card sales; losses to employers resulting from burglaries, robberies, or alleged negligent acts.
“(B) deductions made for uniforms, special tools or special equipment which are not necessary to the performance of the assigned duties and are customarily supplied by the employer;
“(C) any other deduction not set out by K.S.A. 44-313 et seq. or permitted by these rules and regulations.” (Emphasis added.)

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

Related

Herr v. McCORMICK GRAIN-THE HEIMAN COMPANY, INC.
841 F. Supp. 1500 (D. Kansas, 1994)

Cite This Page — Counsel Stack

Bluebook (online)
747 P.2d 179, 12 Kan. App. 2d 417, 28 Wage & Hour Cas. (BNA) 787, 1987 Kan. App. LEXIS 1370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/excel-corp-v-kansas-department-of-human-resources-kanctapp-1987.