Gilliam v. California Employment Stabilization Commission

278 P.2d 528, 130 Cal. App. 2d 102, 1955 Cal. App. LEXIS 1865
CourtCalifornia Court of Appeal
DecidedJanuary 5, 1955
DocketCiv. 16132
StatusPublished
Cited by15 cases

This text of 278 P.2d 528 (Gilliam v. California Employment Stabilization Commission) 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
Gilliam v. California Employment Stabilization Commission, 278 P.2d 528, 130 Cal. App. 2d 102, 1955 Cal. App. LEXIS 1865 (Cal. Ct. App. 1955).

Opinion

BRAY, J.

In a proceeding in the superior court brought under section 1094.5, Code of Civil Procedure, to review a decision of the Unemployment Insurance Appeals Board affirming a decision of a referee for the Department of Employment denying benefits to plaintiffs, the court discharged an alternative writ of mandate and entered judgment in favor of defendants. Plaintiffs appeal.

Questions Presented

1. Are seamen who, under their collective bargaining agreement, have an option to take pay in lieu of vacation, entitled *104 also to unemployment compensation disability benefits 1 under the Unemployment Relief and Insurance Act (Deering’s Gen. Laws, Act 8780d) 2 §11 (a) (1), and title 22, California Administration Code, section 261 (i) ?

2. Are seamen who receive “maintenance and cure” 3 provided for in said agreement entitled to such benefits?

Records

Plaintiffs are seamen employed under collective bargaining agreements between Pacific Maritime Association 4 and National Union of Marine Cooks and Stewards, and whose employment was terminated by reason of illness or accident resulting in disability. Each plaintiff applied to the department for unemployment compensation disability benefits and his application was refused by the examiner because of receipt of either pay in lieu of vacation or maintenance and cure, and in Ledda’s case, receipt of both. Plaintiffs appealed to the Division of Appeals, Department of Employment. A hearing before the referee resulted in a decision adverse to plaintiffs. On appeal to the Appeals Board from the referee’s decision, said decision was affirmed with modification. Plaintiffs then obtained an alternative writ of mandate from the superior court. The cause was submitted on the certified administrative record and briefs. Judgment was entered affirming the decision of the Appeals Board. The effect of the decision is to hold that seamen, who become disabled and who receive maintenance and cure, or who, having the option of taking pay in lieu of vacation, receive pay in lieu of vacation, are disqualified from receiving disability benefits pro tanto. The act provides benefits to be paid to a disabled individual for “each full day during which he is unemployed.” (§205.) The bargaining agreement provides for vacation with pay to stewards having six months or more continuous service in accordance with a detailed plan. Section 208 provides: “No individual shall be paid unemployment *105 compensation disability benefits with respect to any week if he continues to receive his regular wages, or any part thereof; . . .” (Emphasis added.) The court found that vacation pay constitutes “wages” under section 11 (a) (1) of the act, which provides: “. . . the term ‘wages’ means: (1) All remuneration payable for personal services, whether by private agreement or consent or by force of statute, including commissions and bonuses, and the cash value of all remuneration payable in any medium other than cash”; also under section 261 (i), title 22, California Administrative Code, which provides: “ (i) ‘Eeg-ular Wages’ as that term is used in Section 208 of the act means compensation paid entirely by an employer directly to his employee as a full or partial payment of his remuneration during a period of disability.”

Is in Lieu Vacation Pat “Regular Wages”?

It should be pointed out that there is a decided conflict in the findings of both the board and the court in this: both found that plaintiffs’ vacation pay was not “regular wages” and yet that plaintiffs were receiving wages as defined in section 11 (a) (1) and section 261 (i), Administrative Code. The latter section by its terms refers to section 208 only, and defines the “regular wages” mentioned in that section. It has no relation to “wages” or section 11 (a) (1). Thus the findings, in effect, find that plaintiffs’ vacation pay was not “regular wages” and yet were “wages” as defined in section 261 (i), Administrative Code, which only defines “regular wages.” We can disregard this conflict, as even though plaintiffs were receiving “wages” as defined in section 11 (a) (1), they still would be entitled to disability benefits unless they were receiving the “regular wages” mentioned in section 208 defined by section 261 (i). Section 151(a) provides that should there be a conflict between the provisions regarding unemployment compensation (art. 1 to 9, inclusive, of the act) and those regarding unemployment compensation disability benefits (art. 10), the latter provisions shall prevail with respect to such benefits. So the question we are to decide is, “Is vacation pay ‘regular wages’?”

Plaintiffs contend that “regular wages” in section 208 has a definite meaning, namely, the wages the disabled workman was regularly receiving during his employment up to the time of disability, and that, having such meaning, the power given the Department of Employment by section 90 of the act, to promulgate regulations, of which section 261 (i), *106 Administrative Code, is a part, does not include the power to define “regular wages” so as to extend its definite meaning, and therefore “regular wages” can mean nothing except the claimed definite meaning. We agree with plaintiffs that the department would have no power to enact a regulation or give a definition contrary to the terms of the act, but we do not agree that the term “regular wages” as used in section 208 has such a definite and understood meaning that it does not need defining. It is an ambiguous term and requires defining. We find no conflict between section 208 of the act and section 261 (i), Administrative Code.

In determining whether the vacation pay here is “regular wages” as used in section 208, as defined by section 261 (i), Administrative Code, there are two matters to be considered: (1) Is vacation pay “remuneration” and (2) is it such “during a period of disability.” (1) In unemployment compensation cases vacation pay 5 is generally considered earned compensation or wages and not a gratuity. (Jones v. California Emp. Stab. Com., 120 Cal.App.2d 770 [262 P.2d 91]; Shand v. California Emp. Stab. Com., 124 Cal.App.2d 54 [268 P.2d 193]; In re Wil-low Cafeterias, (C.C.A.2d Cir., 1940) 111 F.2d 429.)

The bargaining agreement provided that after six months’ employment, the employee “shall be granted vacation, or in lieu thereof, vacation pay in accordance with the following schedule:” In other states it has been held that where, under the union contract of employment, the employee has the option of taking pay in lieu of vacation, such pay is considered a “bonus” rather than wages or compensation in cases involving unemployment compensation. (Renown Stove Co. v. Michigan Unemp. Comp.

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278 P.2d 528, 130 Cal. App. 2d 102, 1955 Cal. App. LEXIS 1865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilliam-v-california-employment-stabilization-commission-calctapp-1955.