Lindstrom v. St. Francis Hospital & Medical Center, Inc.

636 P.2d 231, 6 Kan. App. 2d 948, 25 Wage & Hour Cas. (BNA) 1055, 1981 Kan. App. LEXIS 408
CourtCourt of Appeals of Kansas
DecidedNovember 25, 1981
DocketNo. 52,891; No. 53,398
StatusPublished
Cited by4 cases

This text of 636 P.2d 231 (Lindstrom v. St. Francis Hospital & Medical Center, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindstrom v. St. Francis Hospital & Medical Center, Inc., 636 P.2d 231, 6 Kan. App. 2d 948, 25 Wage & Hour Cas. (BNA) 1055, 1981 Kan. App. LEXIS 408 (kanctapp 1981).

Opinion

Swinehart, J.:

This is a consolidated appeal of cases numbered 52,891 and 53,398. No. 52,891 is an appeal from the judgment of the District Court of Shawnee County (Judge Carpenter) which affirmed the judgment made by the hearing officer appointed by the Secretary of Human Resources in favor of claimants Mary A. Lindstrom and Candace J. Meade against St. Francis Hospital & Medical Center, Inc. No. 53,398 is an appeal from the judgment of the District Court of Shawnee County (Judge Allen) which reversed the judgment made by the hearing officer appointed by [949]*949the Secretary of Human Resources, finding in favor of respondent St. Francis Hospital & Medical Center, Inc., and against claimant Ethel I. Engelke. The issues in both appeals are identical. Consequently, the cases were consolidated for purposes of appeal.

Claimant Lindstrom was employed as a PBX operator by respondent St. Francis Hospital from November 9, 1977, until May 2, 1979, when she resigned without giving two weeks’ notice. She was employed pursuant to an employer-employee agreement and was receiving $3.59 per hour at the time of her resignation.

Claimant Meade was employed as a nurse’s aide by respondent St. Francis Hospital from February 20, 1978, until April 2, 1979, when she was terminated for cause. She was employed pursuant to an employer-employee agreement and was receiving $4.02 per hour at the time of her termination.

Claimant Engelke was employed as a registered nurse by respondent St. Francis Hospital from February, 1974, until August, 1979, when she resigned without giving two weeks’ notice. She was also employed pursuant to an employer-employee agreement and was receiving $7.68 per hour at the time of her resignation.

As a part of the employment agreement with claimants, the Hospital instituted a “Paid Days Off” (PDO) plan whereby employees accumulated leave hours based on hours worked. Primarily, these leave hours could be used for illness, vacation or holidays. Pursuant to this plan, if an employee resigned in good standing after one year of continuous service, having provided two weeks’ advance notice, the employee would be paid for the unused PDO leave hours which had accrued. If an employee did not work for the required period of time or resigned without giving two weeks’ notice or was discharged for due cause, the employee would not receive compensation for the unused accrued leave hours.

At the time she resigned, Lindstrom had accrued 90.75 hours of PDO. She did not give two weeks’ notice when she resigned, so the Hospital refused to pay her the $325.79 (less authorized deductions) for these accrued hours. When Meade was terminated upon the Hospital’s finding of cause, she had accrued 122 hours of PDO. Since she was terminated for cause the Hospital refused to pay her the $490.44 (less authorized deductions) for these accrued hours. When Engelke resigned, she had accrued [950]*950120.25 hours of PDO. Since she did not give two weeks’ notice when she resigned, the Hospital refused to pay her the $932.32 (less authorized deductions) for these accrued hours.

Claimants Lindstrom, Meade and Engelke filed claims for unpaid wages with the Secretary of Human Resources in accordance with K.S.A. 44-313 et seq. Hearings were held and the hearing officer found in favor of the claimants. Respondent Hospital appealed the decisions to the District Court of Shawnee County. On December 12, 1980, Judge Carpenter affirmed the hearing officer in the Lindstrom and Meade appeal. On May 13, 1981, Judge Allen reversed the hearing officer in the Engelke appeal, finding that while the accumulated PDO were wages, they had not been earned and were therefore properly withheld. Respondent St. Francis Hospital and claimant Engelke appeal from their respective cases.

The Hospital first contends that K.A.R. 49-20-1F is invalid as an administrative regulation for going beyond that which the legislature has authorized. The district court in the Lindstrom and Meade appeal held that K.A.R. 49-20-1F is a valid regulation. We concur.

K.A.R. 49-20-1F states:

“F. ‘Or other basis’, within the meaning of K.S.A. 44-313(c), shall include all agreed compensation for services including, but not limited to, profit sharing and fringe benefits for which the conditions required for entitlement, eligibility, accrual or earning have been met by the employee. Conditions subsequent to such entitlement, eligibility, accrual or earning resulting in a forfeiture or loss of such earned wage shall be ineffective and unenforceable.”

K.S.A. 1980 Supp. 44-313(c) states:

“(c) ‘Wages’ means compensation for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission or other basis less authorized withholding and deductions.” (Emphasis supplied.)

And K.S.A. 1980 Supp. 44-325 states:

“The secretary may adopt such rules and regulations as necessary for the purposes of administering and enforcing the provisions of this act.”

Respondent Hospital contends that K.A.R. 49-20-1F is invalid since it goes beyond that which the legislature has authorized. It is fundamental that for an administrative regulation to be valid, it must be within the statutory authority granted to the administrative agency. The court, in State, ex rel., v. Columbia Pictures Corporation, 197 Kan. 448, Syl. ¶ 4, 417 P.2d 255 (1966), stated:

[951]*951“The power to adopt rules and regulations is administrative in nature, not legislative, and to be valid, must be within the authority conferred. An administrative rule and regulation which goes beyond that which the legislature has authorized, or which violates the statute, or which alters, extends, limits, or attempts to breathe life into the source of its legislative power, is void.”

Respondent contends that the definition of “or other basis” in K.A.R. 49-20-1F and the provision prohibiting conditions subsequent which result in forfeiture goes beyond that which has been authorized by the legislature. Respondent refers to legislative history in an attempt to show that the legislature rejected a definition of wages in the proposed House Bill No. 1429 that would have included vacation pay as wages:

“(c) ‘Wages’ means compensation, including hourly health and welfare, and pension fund contributions required pursuant to a health and welfare trust agreement, pension trust fund agreement, collective bargaining agreement or other agreement adopted for the benefit of an employee, for labor or services rendered by an employee, whether the amount is determined on a time, task, piece, commission or other basis of compensation. Vacation pay, when it is a matter of employment practice or policy, or both, shall be considered wages pursuant to the definition of wages.” H.B. 1429 (1973).

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Cite This Page — Counsel Stack

Bluebook (online)
636 P.2d 231, 6 Kan. App. 2d 948, 25 Wage & Hour Cas. (BNA) 1055, 1981 Kan. App. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindstrom-v-st-francis-hospital-medical-center-inc-kanctapp-1981.