International Brotherhood of Electrical Workers, Local 1357 v. Hawaiian Telephone Co.

713 P.2d 943, 68 Haw. 316
CourtHawaii Supreme Court
DecidedJanuary 28, 1986
DocketCIVIL NO. 71485; CIVIL NO. 71492; CIVIL NO. 72113; CIVIL NO. 75410; NO. 9773
StatusPublished
Cited by86 cases

This text of 713 P.2d 943 (International Brotherhood of Electrical Workers, Local 1357 v. Hawaiian Telephone Co.) is published on Counsel Stack Legal Research, covering Hawaii Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Brotherhood of Electrical Workers, Local 1357 v. Hawaiian Telephone Co., 713 P.2d 943, 68 Haw. 316 (haw 1986).

Opinion

*319 OPINION OF THE COURT BY

PADGETT, J.

Hawaiian Telephone Company (Hawtel) appeals a circuit court judgment upholding the 1981 payment by the Department of Labor and Industrial Relations (DLIR) of unemployment compensation to employees who struck Hawtel in 1974.

In consolidated appeals from DLIR referee rulings, the circuit court found as follows: (1) the DLIR had authority under its 1974 regulations to waive HRS § 383-29(a)(2)’s registration requirement; (2) the 1974 strike did not substantially curtail Hawtel’s operations and therefore did not, under HRS § 383-30(4), disqualify Hawtel strikers from compensation entitlement; (3) the DLIR’s administration of Hawaii’s unemployment compensation laws does not violate 29 U.S.C. § 49 (the Wagner-Peyser Act), 42 U.S.C. §§ 503(a)(2) and (8) (the Social Security Act), or federal procedural due process; and (4) Hawtel is collaterally estopped from arguing that 29 U.S.C. § 151 et seq., The National Labor Relations Act (the NLRA), pre-empts the payment of unemployment compensation to the Hawtel strikers.

We affirm these findings and remand for DLIR findings on the question whether the Hawtel strikers met HRS § 383-29(a)(3)’s availability for work requirement.

*320 I. BACKGROUND

From May 7, 1974 to June 13, 1974, approximately 3,000 Hawtel employees went on strike. During the week of May 7, 1974, the strikers signed or had their names placed on mass claim sheets filed with DLIR by the International Brotherhood of Electrical Workers. See generally Hawaiian Telephone Co. v. State Department of Labor and Industrial Relations, 378 F.Supp. 791, 793 (D.Haw. 1974) (Hawtel I).

HRS § 383-29(a)(2) imposes a work registration requirement as a prerequisite to eligibility for unemployment compensation. However, § 383-29(a)(2) authorizes DLIR waivers of this requirement “by regulation”. 1

The DLIR’s admissions in the circuit court establish that the DLIR waived HRS § 383-29(a)(2)’s registration requirement for the strikers during the week of May 7, 1974. 2 The DLIR claimed waiver authority under now-superseded DLIR Rule XII, Section 8(a) (Section 8(a)).

Section 8(a) generally required claimants to report in person at an employment office or itinerant station to file claims and to register for work. However, Section 8(a) also broadly exempted from in-person filing and registration those individuals performing “less than full-time work” for a regular employer. 3

*321 After the strike ended, Hawtel initiated federal litigation in June 1974 to prohibit the DLIR from paying the strikers unemployment compensation. Injunctions issued on NLRA pre-emption grounds in that litigation (Hawtel I and II) prevented the DLIR from processing the strikers’ claims until 1980. 4

Before the United States Court of Appeals for the Ninth Circuit affirmed the dismissal of Hawtel’s supplemental federal complaint (Hawtel III), 5 the DLIR paid over $1 million to the former strikers. Hawaiian Telephone Co. v. State Department of Labor and Industrial Relations, 691 F.2d 905 (9th Cir. 1982). 6 Contested hearings before a DLIR referee followed. The referee found no substantial curtailment of Hawtel’s operations, and accordingly concluded that the strikers were not disqualified under § 383-30(4). However, the referee ruled that benefits had been improperly paid because the DLIR lacked authority to waive § 383-29(a)(2)’s registration requirement.

The circuit court affirmed the referee’s finding of no substantial curtailment and rejected Hawtel’s federal law arguments. The circuit *322 court reversed the referee’s waiver ruling and held that the DLIR properly waived § 383-29(a)(2)’s registration requirement pursuant to Section 8(a). Hawtel then appealed to this court.

II. STANDARDS OF REVIEW

In an appeal from circuit court review of an agency decision, Hawaii appellate courts apply the same review standards applied by the circuit court. Agency fact findings are reviewable for clear error. In contrast, an agency’s legal conclusions are freely reviewable. Camara v. Agsalud, 67 Haw. 212, 215-16, 685 P.2d 794, 796-97 (1984). An agency’s interpretation of its rules receives deference unless it is plainly erroneous or inconsistent with the underlying legislative purpose. Id. at 216, 685 P.2d at 797; 2 K. Davis, ADMINISTRATIVE LAW TREATISE § 7.22 at 105-06 (2d ed. 1979).

The legal question of Hawaii law’s consistency with federal law was first decided at the circuit court level. The circuit court’s decision on that question is freely reviewable.

III. THE SECTION 8(a) WAIVER OF REGISTRATION UNDER HRS § 383-29(a)(2)

A. Section 8(a) was a Validly Promulgated Rule

We reject Hawtel’s threshold argument that Section 8(a) was not a validly promulgated rule. Section 8(a) was promulgated in 1951 after notice and a public hearing, the transcript of which appears in the record. Rec. Civ. No. 71485, Vol. I at 152-60. The Hawaii Administrative Procedure Act (HAPA) became effective in 1962. Aguiar v. Hawaii Housing Authority, 55 Haw. 478, 485, 522 P.2d 1255, 1260 (1974). Under the HAPA, rules such as Section 8(a) which were in force on the HAPA’s effective date remained in force. Act 103,1961 Haw. Sess. Laws § 17(c) at 85, 90. Thus, Section 8(a) was a valid rule in 1974. 7

*323 B.

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

Related

Ziemlak v. Keeley
Hawaii Intermediate Court of Appeals, 2025
Young v. Hawaii Island Humane Society S.P.C.A.
503 P.3d 970 (Hawaii Intermediate Court of Appeals, 2022)
Crofford v. Adachi
479 P.3d 153 (Hawaii Intermediate Court of Appeals, 2020)
Lana'ians for Sensible Growth v. Land Use Commission.
463 P.3d 1153 (Hawaii Supreme Court, 2020)
Spar Mktg. Servs., Inc. v. State
436 P.3d 1205 (Hawaii Intermediate Court of Appeals, 2019)
Ihara v. State.
Hawaii Supreme Court, 2017
State v. Yong Shik Won
372 P.3d 1065 (Hawaii Supreme Court, 2015)
Irving v. Ocean House Builders
363 P.3d 331 (Hawaii Intermediate Court of Appeals, 2015)
In re Attorney's Fees to McLaren v. Paradise Inn Hawaii, Inc.
321 P.3d 671 (Hawaii Supreme Court, 2014)
Fagaragan v. State.
320 P.3d 889 (Hawaii Supreme Court, 2014)
Peters v. Aipa
188 P.3d 822 (Hawaii Intermediate Court of Appeals, 2008)
Doe v. Doe
188 P.3d 807 (Hawaii Intermediate Court of Appeals, 2008)
Sierra Club v. Department of Transportation
167 P.3d 292 (Hawaii Supreme Court, 2007)
Paul v. DEPARTMENT OF TRANSP., STATE
168 P.3d 546 (Hawaii Supreme Court, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
713 P.2d 943, 68 Haw. 316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-brotherhood-of-electrical-workers-local-1357-v-hawaiian-haw-1986.