State Ex Rel. Hagan v. Chinook Hotel, Inc.

399 P.2d 8, 65 Wash. 2d 573, 1965 Wash. LEXIS 750
CourtWashington Supreme Court
DecidedFebruary 4, 1965
Docket36866
StatusPublished
Cited by50 cases

This text of 399 P.2d 8 (State Ex Rel. Hagan v. Chinook Hotel, Inc.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Hagan v. Chinook Hotel, Inc., 399 P.2d 8, 65 Wash. 2d 573, 1965 Wash. LEXIS 750 (Wash. 1965).

Opinions

Donworth, J.

This suit was instituted by the Attorney General of the State of Washington, alleging that several Yakima hotels1 have violated the Washington Minimum Wage Act, RCW 49.46.010, et seq. by failure to pay the re[574]*574quired minimum wage of $1.25 per hour to certain employees. The crucial issue is whether the statutory definition of “wages” permits the value of meals, the laundering of uniforms, and the cost of medical-welfare insurance furnished to the employees to be included in calculating wages paid, and in determining whether the mínimums provided by the act have been met. This problem was created by a discrepancy in amendments to the Minimum Wage Act in the 1961 extraordinary session of the legislature. To understand the problem fully, a chronological exposition of the history of the pertinent sections of the act may be helpful at this point.

The Minimum Wage Act was passed in 1959. It defined “wage” as follows:

“Section 1. . . .
it
“ (2) ‘Wage’ means compensation due to an employee by reason of his employment, payable in legal tender of the United States or checks on banks convertable into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by regulations of the director under section 5;” (Italics ours.) Laws of 1959, chapter 294, § 1(2).

The foregoing subsection thus referred to § 5 of the act relative to further definition of the term “wage,” and that section reads: .

“Sec. 5. For any occupation, the director shall make and revise such administrative regulations, including definitions of terms, as he may deem appropriate to carry out the purposes of this act or necessary to prevent the circumvention or evasion thereof and to safeguard the minimum wage rates thereby established. Such regulations may include, but are not limited to, regulations defining and governing learners and apprentices, their number, proportion, and length of service; part-time pay; bonuses; overtime pay; special pay for special or extra work; and permitted charges to employees or allowances for board, lodging, apparel, or other facilities or services customarily furnished by employers to employees.” (Italics ours.) Laws of 1959, chapter 294, § 5.

[575]*575It is apparent that the 1959 act sought to allow deductions from the minimum wage for customary items provided by an employer.

In 1961, during the extraordinary session, the legislature amended the act in an apparent response to the decision in Peterson v. Hagan, 56 Wn. (2d) 48, 351 P. (2d) 127 (1960), which held § 5 (codified as RCW 49.46.050) unconstitutional, i.e. as a delegation of legislative authority without sufficient standards. Laws of 1961, Ex. Ses., chapter 18, §2(2), retained intact the section of the 1959 act, defining wages as follows:

“(2) ‘Wage’ means compensation due to an employee by reason of his employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by regulations of the director under RCW 49.46.050.”

However, the legislature, in § 7 of the 1961 amendatory legislation (Laws of 1961, Ex. Ses., chapter 18), repealed Laws of 1959, chapter 294, § 5, and RCW 49.46.050, as follows:

“Sec. 7. Sections 3 and 5, chapter 294, Laws of 1959, and RCW 49.46.030 and 49.46.050 are each repealed.” (Italics ours.) Laws of 1961, Ex. Ses., chapter 18, §'7.

Thus, the 1961 amendments defined “wage” by referring to regulations under RCW 49.46.050, and then, later in the amendments, the legislature repealed RCW 49.46.050 which authorized promulgation of those regulations. Instead of attempting to remedy or correct judicially determined defects in RCW 49.46.050 by supplying appropriate standards, the legislature simply repealed the provision in its entirety, leaving statutory language which only defined “wage” as

“. . . compensation due to an employee by reason of his employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value, subject to such deductions, charges, or allowances as may be permitted by regulations of the director under RCW 49.46.050.” Laws of 1961, Ex. Ses., chapter 18, §2(2).

[576]*576The problem now facing the court is how the important statutory term “wage” is to be defined. The state argues that a mistake in draftsmanship was made by the legislature; but it is urged that, since the 1961 amendments repealed RCW 49.46.050, the real error was made when the legislature did not repeal in their entirety the deductions and allowances referred to in the definition of wages in § 2 of the act.

The state also contends that, since deductions depend upon the statutory authority of RCW 49.46.050, the repeal of that section ends the legal effect of the reference to deductions in the definition of “wage,” and that deductions now simply can be ignored. Under these arguments, the state would limit the definition of wages to “legal tender,” and fix the hourly wage of the employees involved in this case at $1.25 per hour, flatly, and without any deductions whatsoever.

The trial court accepted the foregoing arguments, and reached the following conclusion of law:

“That the following definition of ‘wage’ . . . must be read as follows:
“ ‘ “Wage” means compensation due to the employee by reason of his employment, payable in legal tender of the United States or checks on banks convertible into cash on demand at full face value’

and the balance of said definition reading as follows:

“ ‘subject to such deductions, charges, or allowances as may be permitted by regulations of the director under RCW 49.46.050’ is surplusage and shall not be considered by the Court.”

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Bluebook (online)
399 P.2d 8, 65 Wash. 2d 573, 1965 Wash. LEXIS 750, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-hagan-v-chinook-hotel-inc-wash-1965.