L'Chaim House, Inc. v. Div. of Labor Standards Enforcement

CourtCalifornia Court of Appeal
DecidedJuly 31, 2019
DocketA152975
StatusPublished

This text of L'Chaim House, Inc. v. Div. of Labor Standards Enforcement (L'Chaim House, Inc. v. Div. of Labor Standards Enforcement) 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
L'Chaim House, Inc. v. Div. of Labor Standards Enforcement, (Cal. Ct. App. 2019).

Opinion

Filed 7/31/19 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION ONE

L’CHAIM HOUSE, INC. et al., Plaintiffs and Appellants, A152975 v. DIVISION OF LABOR STANDARDS (Sonoma County ENFORCEMENT, Super. Ct. No. SCV-259820) Defendant and Respondent.

Plaintiffs L’Chaim House, Inc. and its owner, Cary Kopstein (collectively, L’Chaim), operate residential care homes for seniors. L’Chaim was cited for wage and hour violations by defendant Division of Labor Standards Enforcement (DLSE). After an unsuccessful administrative appeal, L’Chaim initiated this action by filing a petition for a writ of administrative mandamus under Code of Civil Procedure section 1094.5, which the trial court denied. On appeal, L’Chaim claims that under the applicable Industrial Welfare Commission (IWC) wage order, it may require its employees to work “on-duty” meal periods that, unlike periods when employees are “relieved of all duty,” do not need to be at least 30 minutes long. (IWC wage order No. 5-2001 (Cal. Code Regs., tit. 8, § 11050) (hereafter Wage Order No. 5), subd. (11)(A), (E).) We hold that, to the contrary, L’Chaim must provide meal periods of at least 30 minutes, regardless of whether they are on-duty or off-duty, under Wage Order No. 5 and the applicable statutory law. We therefore affirm.

1 I. FACTUAL AND PROCEDURAL BACKGROUND Because this appeal presents a pure question of law, we need not discuss the underlying facts in detail. Briefly, in February 2016, the DLSE issued wage and penalty citations to L’Chaim, which operates two 24-hour residential care homes in San Rafael for seniors. The citations were for, among other things, failing to provide 30-minute meal periods under Wage Order No. 5, which governs the public housekeeping industry. A hearing officer affirmed the citations, which included a total of approximately $89,000 in premium-pay and penalty assessments under Labor Code sections 226.7 and 558 for failure to provide 30-minute meal periods to employees. 1 In December 2016, L’Chaim filed the instant action, challenging only the conclusion that it failed to provide meal periods as required. The following September, the trial court denied the writ petition. It concluded that even though L’Chaim was authorized to provide on-duty, as opposed to off-duty, meal periods to its employees, those meal periods still had to be at least 30 minutes long. II. DISCUSSION A. The Standard of Review and Governing Law. A writ of administrative mandamus may be sought on the basis that the agency engaged in a “prejudicial abuse of discretion. Abuse of discretion is established if the [agency] has not proceeded in the manner required by law.” (Code Civ. Proc., § 1094.5, subd. (b).) “Generally, whether an agency has proceeded lawfully is a legal question that the trial court and appellate court both review de novo.” (Stewart Enterprises, Inc. v. City of Oakland (2016) 248 Cal.App.4th 410, 420.) We agree with the parties that L’Chaim’s sole claim—that the on-duty meal breaks authorized by subdivision 11(E) of Wage Order No. 5 do not need to be least 30 minutes long—presents an issue of statutory

1 All further statutory references are to the Labor Code unless otherwise noted.

2 interpretation that we review de novo. (See Robertson v. Health Net of California, Inc. (2005) 132 Cal.App.4th 1419, 1425.) “We apply the usual rules of statutory interpretation to the Labor Code, beginning with and focusing on the text as the best indicator of legislative purpose. [Citation.] ‘[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 to promoting such protection.’ ” (Brinker Restaurant Corp. v. Superior Court (2012) 53 Cal.4th 1004, 1026–1027 (Brinker).) Similarly, when, as here, “a wage order’s validity and application are conceded and the question is only one of interpretation, the usual rules of statutory interpretation apply,” and the wage order “must be interpreted in the manner that best effectuates [the] . . . intent [to protect workers].” (Id. at p. 1027.) “To the extent a wage order and a statute overlap, we will seek to harmonize them, as we would with any two statutes.” (Ibid.) Wage Order No. 5, subdivision 11(A) provides, “No employer shall employ any person for a work period of more than five (5) hours without a meal period of not less than 30 minutes, except that when a work period of not more than six (6) hours will complete the day’s work the meal period may be waived by mutual consent of the employer and the employee. Unless the employee is relieved of all duty during a 30 minute meal period, the meal period shall be considered an ‘on duty’ meal period and counted as time worked. An ‘on duty’ meal period shall be permitted only when the nature of the work prevents an employee from being relieved of all duty and when by written agreement between the parties an on-the-job paid meal period is agreed to. The written agreement shall state that the employee may, in writing, revoke the agreement at any time.” Subdivision 11(E) of Wage Order No. 5 creates an exception for “employees of 24 hour residential care facilities for the elderly,” which the DLSE concedes applies to L’Chaim’s employees. Under that provision, such employees “may be required to work on-duty meal periods without penalty when necessary to meet regulatory or approved

3 program standards and one of the following two conditions is met: [¶] (1) [¶] (a) The residential care employee[] eats with residents during residents’ meals and the employer provides the same meal at no charge to the employee; or [¶] (b) The employee is in sole charge of the resident(s) and, on the day shift, the employer provides a meal at no charge to the employee.” (Wage Order No. 5, subd. 11(E).) In 1999, the Legislature regulated meal periods for the first time by passing section 512, which “made meal periods a statutory as well as a wage order obligation.” (Brinker, supra, 53 Cal.4th at pp. 1036–1037.) Before that, “an employer’s meal periods were governed solely by the language of the IWC’s wage orders.” (Id. at p. 1034.) “The declared intent in enacting section 512,” which was done in response to the IWC’s “weakening of employee protections” in certain wage orders, “was not to revise existing meal period rules but to codify them in part.” (Id. at pp. 1037–1038.) Under the statute, “[a]n employer shall not employ an employee for a work period of more than five hours per day without providing the employee with a meal period of not less than 30 minutes, except that if the total work period per day of the employee is no more than six hours, the meal period may be waived by mutual consent of both the employer and employee.” (§ 512, subd. (a).) 2 B. The On-duty Meal Periods Authorized by Subdivision 11(E) Must Be at Least 30 Minutes Long. L’Chaim’s claim that it does not have to provide on-duty meal periods that are 30 minutes long rests on a fundamental misreading of subdivision 11 of Wage Order No. 5. As noted above, subdivision 11(A) states that “[u]nless the employee is relieved of all duty during a 30 minute meal period, the meal period shall be considered an ‘on duty’ meal period and counted as time worked.” L’Chaim interprets this language to “contemplate[] instances where an employee’s meal period may be less than 30 minutes,” in which case subdivision 11(A) “does not extend the meal period until a full

2 Effective January 1, 2019, the word “shall” was substituted for “may” (Stats. 2018, ch. 48, § 1), but the quoted language has otherwise remained the same since 1999. (See Stats. 1999, ch. 134, § 6; Brinker, supra, 53 Cal.4th at p. 1037, fn. 16.)

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L'Chaim House, Inc. v. Div. of Labor Standards Enforcement, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lchaim-house-inc-v-div-of-labor-standards-enforcement-calctapp-2019.