Mora v. Webcor Construction, L.P.

CourtCalifornia Court of Appeal
DecidedFebruary 5, 2018
DocketA148264
StatusPublished

This text of Mora v. Webcor Construction, L.P. (Mora v. Webcor Construction, L.P.) 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
Mora v. Webcor Construction, L.P., (Cal. Ct. App. 2018).

Opinion

Filed 2/5/18 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION FIVE

STEVEN MORA, Plaintiff and Appellant, A148264 v. WEBCOR CONSTRUCTION, L.P., (Alameda County Super. Ct. No. RG15780062) Defendant and Respondent.

California Labor Code section 226, subdivision (a) (Section 226(a)),1 requires employers to provide employees wage statements itemizing, among other things, all wages earned, including the hours worked and applicable rates of pay. Plaintiff and appellant Steven Mora (appellant) contends defendant and respondent Webcor Construction, L.P. (respondent) violated Section 226(a) by failing to list the hours and hourly rate associated with a payment described as “Union Vacation” on his wage statements. It is undisputed the amounts were payments to a union vacation trust fund authorized by the Labor Management Relations Act of 1947 (LMRA), also known as the Taft–Hartley Act (29 U.S.C. § 141 et seq.). The trial court sustained respondent’s demurrer without leave to amend and we affirm, concluding the payments are not within the scope of Section 226(a). BACKGROUND In July 2015, appellant filed this putative class action in Alameda County Superior Court and, in February 2016, appellant filed a First Amended Complaint (FAC). The

1 All undesignated section references are to the Labor Code.

1 FAC alleges violations of Section 226(a) and seeks penalties under the Private Attorneys General Act of 2004 (PAGA) (§ 2698 et seq.). The FAC seeks to allege the claims on behalf of all persons employed by respondent after July 2014. The FAC alleges appellant was employed by respondent from March 7 through May 14, 2015. Appellant’s employment was subject to a collective bargaining agreement (CBA)—the 2014–2019 Laborers’ Master Builders Agreement—entered into between respondent and the Northern California District Council of Laborers of the Laborers’ International Union of North America;2 the CBA is attached to the FAC as Exhibit A. Among many other things, the CBA sets forth “wages” applicable to different employment classifications. The CBA also separately requires employers to “pay hourly contributions for each hour paid for and/or worked” to various union trust funds at specified rates, including to the Laborers Vacation Holiday Dues Supplement Trust Fund for Northern California (Union Vacation Trust Fund) at $2.63 an hour effective June 2014.3 The FAC alleges that, “[p]ursuant to the terms of the CBA, [appellant] was paid a specific hourly rate of vacation pay for each hour worked,” but “the applicable rate of pay and hours for such vacation wages were not identified on the wage statements” he received from respondent. The FAC alleges this was in violation of Section 226(a).

2 While the CBA was signed by the Construction Employers’ Association of California, there is no dispute among the parties that respondent is associated with that association and that appellant’s employment with respondent was controlled by the terms of the CBA. 3 The CBA also requires hourly payments at specified rates to eight other union funds, described on a chart as “Health & Welfare,” “Retiree Health & Welfare,” “Pension,” “Annuity,” “Training-Retraining/Apprenticeship,” “Contract Administration/Market Preservation,” “Building Industry Stabilization Fund,” and “CEA/Laborers Contract Interpretation and Application Fund.” It is unclear whether each represents a separate trust fund, or whether in some instances payments in different categories go to a single trust fund. For example, the CBA references the “Laborer’s Pension/Annuity Trust Fund for Northern California,” which presumably receives both the “Pension” and “Annuity” payments.

2 In March 2016, respondent filed a demurrer, arguing the payments at issue were outside the scope of Section 226(a) and, in any event, appellant’s claims were preempted by the LMRA. In opposing the demurrer, appellant requested that the trial court take judicial notice of weekly wage statements he received from respondent. The wage statements clarify the nature of appellant’s claims.4 Each wage statement5 contains a heading on the left side entitled “Current Pay Period,” under which are listed three categories: “Regular,” “Overtime,” and “Union Vacation.” On each statement, the “Regular” and “Overtime” lines list hours worked as well as the pay rate for each hour worked, as well as a total amount in a column entitled “Current Amount.” On the other hand, the number of applicable hours worked and the applicable hourly rate are not included for the “Union Vacation” line. Instead, there is only a total dollar amount in the “Current Amount” column. On the right side of each wage statement appears a section entitled “Deductions,” which includes three columns: “Deductions Description,” “Current,” and “YTD Amount.” On each wage statement the only listed deduction is described as “Union Vacation,” and the amount listed in the “Current” column is always the same as the amount listed for “Union Vacation” in the “Current Pay Period” section. Thus, whatever amounts appellant received in the “Union Vacation” category each month were then deducted from the ultimate payment. Appellant alleges, and respondent does not dispute, that the wage statements list the deductions after taxes, meaning that appellant was taxed on the “Union Vacation” payments that were ultimately deducted.

4 The FAC does not contain detailed allegations about the wage statements. Respondent argued below and argues on appeal that the wage statements are not a proper subject for judicial notice. The trial court did not rule on the request for judicial notice in its decision. In any event, and regardless of whether it would be proper to take judicial notice of the wage statements, we consider them on appeal because appellant could amend his complaint to allege the contents of the wage statements, if it would permit him to state a claim. 5 The final two wage statements are hand-filled forms that look different from the other statements. Appellant focuses on the other eight statements and we do the same.

3 Appellant’s claims in the present lawsuit are based on the failure to state the number of hours and hourly rate for the “Union Vacation” payment category on the wage statements. He contends those payments were part of his wages and, therefore, itemization of the hours and applicable rate was required under Section 226(a). Although the FAC does not expressly so allege, the parties agree and the CBA attached to the FAC makes clear that the “Union Vacation” amounts on the wage statements are payments to a Taft-Hartley trust—specifically, the Union Vacation Trust Fund. In April 2016, following a hearing, the trial court sustained respondent’s demurrer without leave to amend. The court concluded the payments to the Union Vacation Trust Fund were not “wages” within the meaning of Section 226(a), in part because appellant “never had possession or control of these payments, or the right to control them.” The court also concluded appellant’s claims were preempted by the LMRA because the CBA would need to be interpreted in order to determine “whether and when [appellant] becomes entitled to the hourly payments listed, whether any conditions attach, and when and how such conditions are satisfied.” This appeal followed.

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Bluebook (online)
Mora v. Webcor Construction, L.P., Counsel Stack Legal Research, https://law.counselstack.com/opinion/mora-v-webcor-construction-lp-calctapp-2018.