Morales v. 22nd Dist. Agric. Ass'n

235 Cal. Rptr. 3d 401, 25 Cal. App. 5th 85
CourtCalifornia Court of Appeal, 5th District
DecidedJuly 10, 2018
DocketD072378
StatusPublished
Cited by13 cases

This text of 235 Cal. Rptr. 3d 401 (Morales v. 22nd Dist. Agric. Ass'n) is published on Counsel Stack Legal Research, covering California Court of Appeal, 5th District primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morales v. 22nd Dist. Agric. Ass'n, 235 Cal. Rptr. 3d 401, 25 Cal. App. 5th 85 (Cal. Ct. App. 2018).

Opinion

AARON, J.

*87I.

INTRODUCTION

In this appeal, we must determine whether a state entity whose employees are exempt from state law requiring the payment of overtime compensation is nevertheless required to pay overtime compensation to such employees when the state entity jointly employs the employees with a non-state employer. Although we concluded in a prior appeal in this case that the matter should be remanded to the trial court to permit the plaintiffs to amend their complaint to attempt to state a cause of action premised on such a theory ( Morales v. 22nd Dist. Agricultural Assn. (2016) 1 Cal.App.5th 504, 542-544, 206 Cal.Rptr.3d 1 ( Morales )), we now conclude that such a cause of action would not be legally viable. We further conclude that the law-of-the-case doctrine does not require that we reverse the trial court's order sustaining a demurrer to the plaintiffs' second amended complaint.1

II.

FACTUAL AND PROCEDURAL BACKGROUND

A. Proceedings in the case prior to our decision in Morales2

Defendant 22nd District Agricultural Association of the State of California (the DAA) is a California agency that owns and manages the Del Mar Fairgrounds and the Del Mar Horsepark. Plaintiff Jose Luis Morales and a group of other seasonal *404employees of the DAA filed a putative class action alleging that the DAA failed to pay plaintiffs overtime compensation required *88by state law under Labor Code section 5103 and federal law under the Fair Labor Standards Act of 1938 ( 29 U.S.C. § 201 et seq. ) (FLSA).

The trial court sustained, without leave to amend, the DAA's demurrer to plaintiffs' section 510 cause of action. After the trial court conditionally certified the case as a collective action, the DAA asserted an affirmative defense to plaintiffs' FLSA claim. Specifically, the DAA alleged that the employees were exempt from the FLSA overtime compensation requirements pursuant to a statutory exemption ( 29 U.S.C. § 213(a)(3) ) commonly referred to as the "amusement exemption."4 The trial court held a jury trial on the DAA's affirmative defense to plaintiffs' FLSA claim. The jury rendered a verdict in favor of the DAA and the trial court entered a judgment in favor of the DAA. Plaintiffs timely appealed.

B. Morales

The primary issues on appeal in Morales related to plaintiffs' claim under the FLSA. ( Morales , supra , 1 Cal.App.5th at p. 513, 206 Cal.Rptr.3d 1.) The Morales court concluded that the trial court properly granted judgment for the DAA on the FLSA claim. ( Ibid. ) The present appeal presents no issues with respect to that claim.

The Morales court also rejected plaintiffs' contention that the trial court erred in sustaining the DAA's demurrer to plaintiffs' section 510 claim. ( Morales , supra , 1 Cal.App.5th at p. 542, 206 Cal.Rptr.3d 1.) After reviewing relevant case law,5 statutory law, and administrative regulations, we concluded, "when section 510 and [W]age [O]rder No. 10-2001 are viewed together, the inescapable conclusion is that public employees in the amusement and recreation industry are exempt from state overtime requirements." ( Morales , supra , at p. 541, 206 Cal.Rptr.3d 1.) However, the Morales court concluded that the trial court erred in denying plaintiffs leave to amend to attempt to state a claim for section 510, subdivision (a) overtime "under the joint employee doctrine." ( Morales , at p. 543, 206 Cal.Rptr.3d 1.)

*89In reaching this latter conclusion, the Morales court noted that plaintiffs contended that "the DAA is required to comply with section 510 when it loans out its employees to outside promoters to support 'interim events,' ... and charges the outside promoters the labor costs of employing the employees, plus a markup." ( Morales , supra , 1 Cal.App.5th at p. 542, 206 Cal.Rptr.3d 1.) We further noted that "[plaintiffs] assert that they can amend the complaint to allege that when they work on interim events, the DAA is a joint *405employer with the outside promoters and must therefore comply with section 510." ( Id. at pp. 542-543, 206 Cal.Rptr.3d 1.) After observing that "where joint employment exists, all employers are individually responsible for compliance with the FLSA," ( id. at p. 543, 206 Cal.Rptr.3d 1 ) and that "joint employment is also recognized under California law," ( ibid. ) we concluded that plaintiffs should be granted leave to amend their complaint, reasoning:

"We conclude that [plaintiffs] should be permitted to amend their section 510 claim since they have shown how they can potentially amend their complaint to state a valid claim under the joint employee doctrine. Accordingly, we reverse that part of the order sustaining the demurrer without leave to amend and direct the trial court to grant [plaintiffs] leave to amend the complaint. In so doing, we express no view as to the ultimate merits of [plaintiffs'] section 510 claim." ( Id. at pp. 543-544, 206 Cal.Rptr.3d 1.)

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Cite This Page — Counsel Stack

Bluebook (online)
235 Cal. Rptr. 3d 401, 25 Cal. App. 5th 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morales-v-22nd-dist-agric-assn-calctapp5d-2018.