Nisei Farmers League v. Cal. Labor & Workforce Dev. Agency

242 Cal. Rptr. 3d 177, 30 Cal. App. 5th 997
CourtCalifornia Court of Appeal, 5th District
DecidedJanuary 4, 2019
DocketF075102
StatusPublished
Cited by22 cases

This text of 242 Cal. Rptr. 3d 177 (Nisei Farmers League v. Cal. Labor & Workforce Dev. Agency) 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
Nisei Farmers League v. Cal. Labor & Workforce Dev. Agency, 242 Cal. Rptr. 3d 177, 30 Cal. App. 5th 997 (Cal. Ct. App. 2019).

Opinion

LEVY, Acting P.J.

*1002Plaintiffs Nisei Farmers League and California Building Industry Association filed this action in the trial court challenging the constitutional validity of Labor Code1 section 226.2, a recently enacted law articulating wage requirements applicable where an employer uses a piece-rate method of compensating its employees. The complaint was brought against the state labor agencies and agency officials responsible for enforcing the wage law (defendants).2 In their complaint, plaintiffs alleged among other things that provisions of section 226.2 were so uncertain as to render the statute void for vagueness. Other constitutional challenges to the validity of section 226.2 were premised on allegations that the statute would be applied retroactively. Defendants demurred to the complaint, arguing that the wording of section 226.2 was not unconstitutionally vague and that the other constitutional challenges asserted in plaintiffs' complaint were without merit because the statute was not retroactive. The trial court agreed with defendants' analysis, sustained the demurrer without leave to amend, and entered a judgment of dismissal. In doing so, the trial court also declined to grant *1003plaintiffs' request for declaratory relief relating to an affirmative defense created by the statute. Plaintiffs appeal from the judgment.

Based on our review of the pertinent issues, we conclude that plaintiffs failed to allege an adequate basis for finding the statute to be facially unconstitutional. We also conclude that denial of the declaratory relief requested was appropriate. Thus, the demurrer was properly sustained without *181leave to amend. For these and other reasons more fully explained below, the judgment of the trial court is hereby affirmed.

LEGAL BACKGROUND AND PROCEDURAL HISTORY

Plaintiffs Represent Employers Using Piece-Rate Wage Systems

Plaintiffs are organizations that claim to represent thousands of California employers in the agricultural and construction industries. Many of plaintiffs' member employers pay their employees on a piece-rate basis because that method of compensation creates incentives for higher productivity. Under a piece-rate system, employees are not paid by the hour, but rather are compensated based on activities, tasks, or units of production completed (see Vaquero v. Stoneledge Furniture, LLC (2017) 9 Cal.App.5th 98, 109, fn. 7, 214 Cal.Rptr.3d 661 ; Jackpot Harvesting Co ., Inc. v. Superior Court (2018) 26 Cal.App.5th 125, 135, 237 Cal.Rptr.3d 1 ( Jackpot Harvesting ) ), such as the quantity of produce picked, the number of yards of carpet installed, or the number of miles driven. Plaintiffs point out there are numerous studies showing that piece-rate systems which reward employee productivity generally lead to higher pay for employees, significantly increased productivity, and cost savings to consumers. Plaintiffs allege that their " 'members' employees regularly earn through piece-rate compensation sums that far exceed minimum wage or what they could expect to earn through hourly compensation." California has long recognized that wages may be paid on a piece-rate basis. (§ 200 [defining "wages" as including all amounts for labor performed by employees "whether the amount is fixed or ascertained by the standard of time, task, piece, commission basis, or other method of calculation"].)

According to plaintiffs, the employers they represent design their piece-rate wage systems to cover all work performed by their employees throughout the work day, including rest breaks. Allegedly, these employers are careful to ensure that piece-rate compensation fully complies with minimum wage requirements. They ensure compliance with the minimum wage law at the end of each pay period "by dividing the hours worked by the payment made *1004and making any additional payment necessary to 'true up' the total compensation to reach at least minimum wage." Plaintiffs further allege this piece-rate method of paying wages (including the method used to ensure compliance with minimum wage law) was understood by employers to be in accordance with established law, was the settled practice in the industry, and was consistent with defendants' own publications providing guidance to employers.

The 2013 Court of Appeal Decisions

In 2013, two watershed Court of Appeal decisions upended the expectations of any employers who may have assumed that a piece-rate system carried out in the manner described above would fully comply with the law. These two decisions were Gonzalez v. Downtown LA Motors, LP (2013) 215 Cal.App.4th 36, 155 Cal.Rptr.3d 18 ( Gonzalez ) and Bluford v. Safeway Inc . (2013) 216 Cal.App.4th 864, 157 Cal.Rptr.3d 212 ( Bluford ).

In Gonzalez , automotive service technicians were paid piece-rate compensation based on the completion of repair tasks. The plaintiffs in Gonzalez , a class of former technicians who had worked for the defendant employer, claimed that they should be paid a separate hourly minimum wage for time spent during their workshifts waiting for vehicles to repair and *182performing other nonrepair tasks directed by the employer, even though the employer supplemented the technicians' compensation at the end of the pay period to cover any shortfall between the piece-rate compensation and minimum wage for all hours worked. ( Gonzalez , supra , 215 Cal.App.4th at p. 40, 155 Cal.Rptr.3d 18.) The Court of Appeal concluded the plaintiffs' legal position was correct and held that they were "entitled to separate hourly compensation for time spent waiting for repair work or performing other nonrepair tasks directed by the employer during their workshifts...." ( Id . at pp. 40-41, 155 Cal.Rptr.3d 18.) As explained in Gonzalez

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mora v. C.E. Enterprises
California Court of Appeal, 2025
Mora v. C.E. Enterprises CA2/6
California Court of Appeal, 2025
Dowswell v. Bd. Of Administration of CalPERS CA3
California Court of Appeal, 2025
Estate of Breeze CA3
California Court of Appeal, 2025
People v. Porter
California Court of Appeal, 2025
Lester v. Tender Love and Care CA4/1
California Court of Appeal, 2025
Lattimore v. Department of Social Services CA6
California Court of Appeal, 2023
D'Aguiar v. City of Campbell CA6
California Court of Appeal, 2023
Marriage of Bassi CA6
California Court of Appeal, 2023
Rutenburg v. Twitter CA1/1
California Court of Appeal, 2023
Wilkes v. JPMorgan Chase Bank, N.A. CA6
California Court of Appeal, 2022
Sandra Garybo v. Leonardo Bros
E.D. California, 2021
Read v. Chuapoco CA6
California Court of Appeal, 2021
Marriage of Adams CA6
California Court of Appeal, 2021
Colmet-Daage v. Cremoux CA6
California Court of Appeal, 2021

Cite This Page — Counsel Stack

Bluebook (online)
242 Cal. Rptr. 3d 177, 30 Cal. App. 5th 997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nisei-farmers-league-v-cal-labor-workforce-dev-agency-calctapp5d-2019.