Krug v. Board of Trustees of the Cal. State Univ.

CourtCalifornia Court of Appeal
DecidedApril 1, 2025
DocketB320588A
StatusPublished

This text of Krug v. Board of Trustees of the Cal. State Univ. (Krug v. Board of Trustees of the Cal. State Univ.) 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
Krug v. Board of Trustees of the Cal. State Univ., (Cal. Ct. App. 2025).

Opinion

Filed 4/1/25; Opinion on remand from Supreme Court CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION ONE

PATRICK KRUG, B320588

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. 21STCV14538) v.

BOARD OF TRUSTEES OF THE CALIFORNIA STATE UNIVERSITY,

Defendant and Respondent.

APPEAL from a judgment of the Superior Court of Los Angeles County, Carolyn B. Kuhl, Judge. Affirmed. Stiller Law Firm, Ari. J. Stiller; Hennig Kramer Ruiz & Singh, Kramer Brown Hui, Jennifer Kramer, Shoshee Hui; Gunn Coble, Beth Gunn, Catherine J. Coble for Plaintiff and Appellant. Call & Jensen, Julie R. Trotter, Jacqueline Beaumont, Melinda Evans for Defendant and Respondent. ___________________________________ When the COVID-19 pandemic struck, the Board of Trustees of the California State University (CSU) directed that instruction be provided remotely. To comply with this directive, Patrick Krug, a biology professor at California State University Los Angeles, incurred expenses for a computer and other equipment and necessities which CSU declined to reimburse. Krug sued CSU on behalf of himself and similarly situated faculty, alleging Labor Code section 2802 obligated CSU to reimburse its employees for necessary work-related expenses. CSU demurred, arguing that as a department of the state it enjoyed broad exemption from Labor Code provisions that infringe on its sovereign powers. Krug appealed from a judgment of dismissal entered after the trial court sustained CSU’s demurrer without leave to amend. We affirmed the judgment, holding that absent express words or positive indicia to the contrary, Labor Code section 2802 did not obligate CSU, a public institution, to reimburse employees for work-related expenses because CSU did not fall within the general words of the section, and subjecting CSU to the section in this case would impair its sovereignty by infringing on the broad discretion it enjoys under the Education Code to set its own equipment reimbursement policies. Our Supreme Court granted review pending its decision in Stone v. Alameda Health System (2024) 16 Cal.5th 1040 (Stone), after which it remanded the matter to us for reconsideration in light of its holding in that case. After reconsideration in light of Stone, we again affirm the judgment.

2 BACKGROUND The CSU system is a “state agency . . . in the field of public higher education which is charged with the management, administration, and control of the State College System of California.” (Cal. Const., art. XX, § 23; see Ed. Code, §§ 66600 [creating CSU’s board of trustees]; 89000 et seq. [governing CSU].) The Legislature has conferred on CSU a variety of powers, including the power to “prescribe policies and procedures for the acquisition of services, facilities, materials, goods, supplies, or equipment.” (Ed. Code, § 89036, subd. (a)(2).) In March 2020, CSU directed its teachers to begin teaching classes remotely. Krug did so but was denied access to his workplace office to retrieve his CSU-provided computer and printer. He absorbed the cost for replacing these items himself, then asked for reimbursement, which the school denied. CSU 1 took the position that Labor Code section 2802, subdivision (a), which obligates an employer to “indemnify [an] employee for all necessary expenditures . . . incurred . . . in direct consequence of the discharge of his or her duties,” did not apply to the school because such application would infringe on its sovereign powers as a department of the state. Krug filed this class action complaint against CSU, alleging a single claim for reimbursement of home-office expenses for 2 himself and other CSU faculty employees under section 2802. 1 Undesignated statutory references are to the Labor Code. 2 Before filing the lawsuit, Krug obtained a letter from the Department of Industrial Relations (aka Division of Labor Standards Enforcement; DLSE) stating that the DLSE “disagree[d] . . . that California Labor Code Section 2802 does not apply to employees of the California State Universities.” 3 Krug alleged he incurred necessary business expenses for electricity, postage, internet service charges, use of personal phones for work-related purposes, office supplies, chairs, computers, printers, ink and toner, and computer monitors required to perform his work. He later amended the complaint to add a claim under the Private Attorneys General Act (PAGA) stemming from the same reimbursement denial but now concedes that claim is not viable. CSU demurred to the Labor Code claim on the ground that as a department of the state it was not subject to suit for the Labor Code violation asserted, and to the PAGA claim on the ground that an employee may seek PAGA penalties against a public entity only if the underlying statute provides for civil penalties, which section 2802 did not. The trial court sustained CSU’s demurrer without leave to amend, reasoning that as a governmental agency, CSU was exempt from section 2802 because that section did not expressly apply to public employers. Further, because there was no Labor Code violation, the trial court found the PAGA claim could not stand. Krug appeals from the resulting judgment of dismissal.

DISCUSSION Krug contends that the language, context, and history of section 2802 demonstrate a legislative intent to require public employers to reimburse employees for reasonable work-related expenses.

4 A. Analytical Framework Because this appeal is taken from a dismissal on demurrer, and involves questions of statutory interpretation, our review is de novo. (Stone, supra, 16 Cal.5th at p. 1052.) Our fundamental task in interpreting a statute “ ‘is to ascertain the Legislature’s intent and effectuate the law’s purpose, giving the statutory language its plain and commonsense meaning. [Citation.] We examine that language in the context of the entire statutory framework to discern its scope and purpose and to harmonize the various parts of the enactment.’ [Citation.] If the language is clear, ‘ “its plain meaning controls. If, however, the language supports more than one reasonable construction, then we may look to extrinsic aids, including the ostensible objects to be achieved and the legislative history.” ’ ” (Stone, supra, 16 Cal.5th at p. 1052; see also Wells v. One2One Learning Foundation (2006) 39 Cal.4th 1164, 1190 (Wells) [“The statutory language itself is the most reliable indicator, so we start with the statute’s words, assigning them their usual and ordinary meanings, and construing them in context. If the words themselves are not ambiguous, we presume the Legislature meant what it said, and the statute’s plain meaning governs. On the other hand, if the language allows more than one reasonable construction, we may look to such aids as the legislative history of the measure and maxims of statutory construction”].) “ ‘ “[I]n light of the remedial nature of the legislative enactments authorizing the regulation of wages, hours and working conditions for the protection and benefit of employees, the statutory provisions are to be liberally construed with an eye

5 to promoting such protection.” ’ ” (McLean v. State of California (2016) 1 Cal.5th 615, 622 (McLean).) Stone involved wage-and-hour claims by healthcare workers against a public hospital. (Stone, supra, 16 Cal.5th at p. 1050.) “The operative complaint alleged that [the hospital] frequently denied or discouraged the taking of meal and rest breaks and ‘automatically deducted 1/2 hour from each workday’ even when meal periods were not taken.” (Ibid.) The employees’ claims fell under Industrial Welfare Commission (IWC) Wage Order No. 5-2001 (Cal. Code Regs., tit. 8, § 11050; hereafter Wage Order No. 5), which regulates working conditions of hospital employees. (Stone, at pp.

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Krug v. Board of Trustees of the Cal. State Univ., Counsel Stack Legal Research, https://law.counselstack.com/opinion/krug-v-board-of-trustees-of-the-cal-state-univ-calctapp-2025.