Hestand v. Saunders

101 Cal. Rptr. 2d 909, 85 Cal. App. 4th 334
CourtCalifornia Court of Appeal
DecidedJanuary 8, 2001
DocketG024918
StatusPublished

This text of 101 Cal. Rptr. 2d 909 (Hestand v. Saunders) 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
Hestand v. Saunders, 101 Cal. Rptr. 2d 909, 85 Cal. App. 4th 334 (Cal. Ct. App. 2001).

Opinion

101 Cal.Rptr.2d 909 (2000)
85 Cal.App.4th 334

Andy L. HESTAND et al., Plaintiffs and Appellants,
v.
Marcy SAUNDERS, as Labor Commissioner, etc., et al., Defendants and Respondents.

No. G024918.

Court of Appeal, Fourth District, Division Three.

December 8, 2000.
As Modified on Denial of Rehearing January 8, 2001.
Review Denied February 21, 2001.[*]

*910 Law Offices of Carroll & Scully, Inc., Donald C. Carroll and Charles P. Scully, II, San Francisco, for Plaintiffs and Appellants.

Miles E. Locker, Chief Counsel, Division of Labor Standards Enforcement, for Defendants and Respondents Marcy Saunders, as Labor Commissioner, and Division of Labor Standards Enforcement.

Morrow, Golenor & Salisbury, Laura J. Bintliff and Richard J. Golenor, Westlake Village, for Defendant and Respondent Odebrecht Contractors of California, Inc.

Littler Mendelson, Daniel K. Klingenberger, Fresno, and Jason H. Borchers, for Association of Energy Service Companies, California Chapter as Amicus Curiae on behalf of Defendant and Respondent Odebrecht Contractors of California, Inc.

Archbald & Spray and Douglas B. Large, Santa Barbara, for Veco Drilling, Inc. as Amicus Curiae.

OPINION

BEDSWORTH, J.

Andy L. Hestand, Rick A. Bishop and Fred M. Matthiesen (collectively "Hestand" except where clarity dictates they be considered individually) appeal from a judgment denying their petition for a peremptory writ of mandate. They sought to compel Marcy Saunders, as Labor Commissioner of California,[1] and the Division of Labor Standards Enforcement (DLSE) which she heads, to process this complaint for overtime pay allegedly due under Wage Order 4-89. Hestand argues mandamus *911 is the proper procedure to review an agency's interpretation of its regulations, he is covered by the wage order, and the trial court improperly considered parol evidence that it was not intended to apply to the "on-site construction" industry in which he works.

We agree that mandate lies, but conclude that Wage Order 4-89 was never intended to apply to the on-site construction industry. Accordingly, we affirm the judgment denying the writ.

* * *

Hestand and his colleagues were employed by Odebrecht Contractors of California, Inc. (Odebrecht), the general contractor engaged to construct the Seven Oaks Dam in San Bernardino County. Hestand and Bishop were mechanics; Matthiesen was a heavy equipment operator. In 1997, each filed a claim with the DLSE for unpaid overtime, alleging that he regularly worked more than 8 hours per day but only was paid overtime for work in excess of a 40-hour week. The DLSE refused to act upon the complaints, in accord with its position that the on-site construction industry was not covered by Wage Order 4-89, instead being regulated by federal law which mandates overtime pay for work beyond a 40-hour week. This writ petition followed.

The DLSE, headed by the Labor Commissioner, is the state agency charged with enforcing California's labor laws. (Lab. Code §§ 21, 61, 95, 98-98.7, 1193.5.)[2] These include the regulations of the Industrial Welfare Commission (IWC), the agency empowered to adopt regulations governing employment within the state. (§§ 1173, 1178.5, 1182.) Such regulations are known as wage orders.

Wage Order 4-89 applies "to all persons employed in professional, technical, clerical, mechanical, and similar occupations ... unless such occupation is performed in an industry covered by an industry order of this Commission...." (Cal.Code Regs., tit. 8, § 11040, subd. 1, italics added.)[3] This general statement of coverage is amplified by a long list of included occupations, among which are "mechanics," "vehicle operators," and the general catch-all "other related occupations listed as professional, semiprofessional, technical, clerical, mechanical and kindred occupations." (Cal.Code Regs., tit. 8, § 11040, subd. 2(C).) Wage Order 4-89 bars work in excess of eight hours in any twenty-four hour period, or more than forty hours in any workweek, unless the employer pays overtime at rates set out in the order. (Cal.Code Regs., tit.8, § 11040, subd. 3(A).) This is the basis of Hestand's claim, but the history of the IWC and Wage Order 4-89 refutes it.

The IWC was originally established in 1913 to regulate the wages, hours and conditions of employment of women and children. Over the years, it promulgated a series of orders to carry out this mandate. In the early 1970's, several federal decisions invalidated a number of the IWC's orders on the ground that they discriminated on the basis of sex, in violation of the federal Civil Rights Act of 1964. In response, in 1972 and 1973, the Legislature expanded the jurisdiction of the IWC to cover all California workers. (Industrial Welfare Com. v. Superior Court (1980) 27 Cal.3d 690, 700-701, 166 Cal.Rptr. 331, 613 P.2d 579.)

As the IWC worked to amend its orders to comply with its new mandate, it held a public hearing in March 1974. At that forum, the chairman read into the record a statement that the IWC did not intend to cover on-site construction workers in new orders being formulated. The *912 statement explained that historically the IWC did not regulate the drilling, logging, mining or construction industries because very few women or minors were employed in such activities. Alluding to the statutory prerequisites for adopting wage orders, it stated that no investigation was made of working conditions in these industries, and no wage board was appointed to consider them.[4] "In short, as drilling, mining, logging and on-site construction activities have never been covered and the wage board process has not been invoked with respect to them, such activities are not regulated in the proposed orders."[5]

Despite this stated intent, the IWC did not amend the then-existing version of Order 4, Order 4-68, to reflect such an exclusion. In fact, although Order 4 was revised in 1976 (Order 4-76), 1980 (Order 4-80), 1989 (Order 4-89, the version involved in this case), and again in 1998 (Order 4-98), no version exempted the on-site construction industry. Order 4-98 eliminated the daily overtime requirement found in prior orders (i.e., it no longer required overtime pay for labor beyond 8 hours per day), and instead provided that overtime was due only for work in excess of a 40-hour workweek. (Cal.Code Regs., tit. 8, § 11040, subd. 3(A).) However, it was subsequently declared void and Order 4-89 was reinstated.[6]

Nonetheless, until this appeal, the DLSE and the Labor Commissioner have unwaveringly declared, in statements public and private, that the on-site construction industry was not covered by any wage order. At a public hearing in June 1975, the IWC unanimously adopted a motion that "the need for orders in on-site construction, drilling, mining, and logging activities be investigated." In 1976, the commission issued a statement of findings in connection with the revisions of its wage orders that year, in which it declared: "On-site construction, on-site drilling and mining, and on-site logging operations are not covered by I.W.C. orders because wage boards representing those activities *913 have not been called." Like statements were made at public hearings in 1978 and 1979.

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Bluebook (online)
101 Cal. Rptr. 2d 909, 85 Cal. App. 4th 334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hestand-v-saunders-calctapp-2001.