Szewczyk v. Orange County Employees Retirement System

California Court of Appeal·Decided September 14, 2026·No. G065386·Published

Opinion

Filed 8/14/26; Certified for Publication 9/11/26 (order attached)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

ROBERT SZEWCZYK et al.,

Plaintiffs and Respondents, G065386

v. (Super. Ct. No. 30-2022-

01268984)

ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM et al., OPINION

Defendants and Appellants.

Appeal from a judgment of the Superior Court of Orange County, Sandy N. Leal, Judge. Affirmed.

Reed Smith, Maytak Chin and Mariah K. Fairley for Defendants and Appellants.

Rains Lucia Stern St. Phalle & Silver and Jacob A. Kalinski for Plaintiffs and Respondents.

Pursuant to the County Employees Retirement Law of 1937 (Gov.

Code, § 31450 et seq.) (CERL), a County of Orange (County) employee

receives a pension amount based in part on the employee’s “‘[c]ompensation earnable’” (§ 31461, subd. (a).). 1 “‘Compensation earnable’” is defined as “the average compensation . . . for the period under consideration upon the basis of the average number of days ordinarily worked by persons in the same grade or class of positions during the period, and at the same rate of pay.” (Ibid.)

Following a reorganization of the Orange County Sheriff’s Department in 2008, those classified in the position of deputy sheriff II were assigned to work patrol while those classified as a deputy sheriff I worked in jail operations. Deputy sheriff II’s Robert Szewczyk and Rodney Morikawa, along with other deputy sheriff II’s who had been working in jail operations at the time of the reorganization, accepted the option to remain working in jail operations. All deputy sheriffs working in jail operations, exclusively, were required to work a so-called “platoon schedule” by which they worked a regular, mandatory schedule of 80.5 hours every two weeks; a half-hour of overtime coded as “6FE” overtime was built into this regular work schedule. 2 After they retired in 2018, Szewczyk and Morikawa petitioned the trial court for a writ of administrative mandamus and a writ of traditional mandamus compelling the Orange County Employees Retirement System (OCERS) and the OCERS Board of Retirement (the Board) (collectively, the OCERS parties) to include 6FE overtime pay as

1 All further statutory references are to the Government Code

unless otherwise specified.

2 The “6” in 6FE overtime represents planned overtime, the “F”

character represents overtime in the “‘other’” category because this type of overtime does not fall into any other category, and the final character “E” represents the deputy sheriff classification code of the employee working the overtime.

“‘compensation earnable’” in determining their final compensation and pension benefit. The court granted the petitions and the OCERS parties appealed.

We affirm. For the reasons we explain, 6FE overtime pay constituted compensation earned by persons in Szewczyk and Morikawa’s same grade or class of positions during the relevant time period, and at the same rate of pay, and therefore must be included in their compensation earnable calculation under section 31461, subdivision (a).

FACTS AND PROCEDURAL HISTORY I.

SZEWCZYK AND MORIKAWA APPLY FOR SERVICE RETIREMENT AND REQUEST 6FE OVERTIME PAY BE INCLUDED IN COMPENSATION EARNABLE In February 2018, Szewczyk and Morikawa each filed an application for service retirement with OCERS. In March 2018, they each requested OCERS approve and include in their compensation earnable, inter alia, the “[half-hour of] overtime (code 6FE) deputies [were] paid each and every pay period” as “[t]his overtime applie[d] to all deputies in corrections assigned the 12-hour work schedule.” 3 In June 2019, OCERS denied Szewczyk’s and Morikawa’s requests. OCERS Director of Member Services, Heidi Halbur, sent substantively identical letters dated June 11, 2019, to Szewczyk and Morikawa, explaining the basis for the denial as follows: “[T]he 6FE overtime you received while working at correctional facilities assigned to the 12-hour work schedule is not compensation earnable and was properly excluded from

3 For ease of reading, in this opinion, we have omitted some

formatting (such as capitalization and underscoring) from quoted material found in the briefs, trial court record, and administrative record.

your final average salary because it is not overtime required to be worked that is ordinarily worked by others in your same grade/class/rate of pay.” She further explained: “Your job class at the time of your retirement was deputy sheriff II. The vast majority of deputy sheriff II’s work in assignments other than corrections and therefore are not required to work this additional [half- hour] of 6FE overtime. [¶] This situation is governed by the case Stevenson [v. Board of Retirement of Orange County Employees Retirement System] (2010) 186 Cal.App.4th 498, where the court rejected the argument that [the plaintiff], an [Orange County Sheriff’s Department] investigator, should be classified as a ‘narcotics investigator’ because his assignment necessitated more overtime than investigators with other assignments. Rather, the Court of Appeal[] looked to the County’s official job description and class characteristics of Investigator to conclude that narcotics investigators did not constitute their own grade or class within the meaning of the CERL. Instead, there were only five ‘classes’ of positions [deputy sheriff I, deputy sheriff II, deputy sheriff trainee, investigator, and investigator-polygraph operator]. The court specifically concluded that the law does not require looking for the smallest unit of workers who have the most in common as to duties, responsibilities or schedules.”

Halbur further stated: “In reaching my conclusion, I have followed the direction set out by the court in Stevenson to look to the official actions of the County defining the various classes characteristics[4].

4 Halbert’s letter contained the following footnote: “For deputy

[sheriff] II, the job duties are, ‘to patrol an assigned area and enforce law and order; to perform the more difficult and responsible work in guarding and directing prisoners in a county jail; to act as training or range officer; to transport and guard prisoners; to perform traffic law enforcement and accident investigation functions; and to do other work as required.’ The class

Corrections duties are just one of a wide range of roles to which a Deputy Sheriff II can be assigned. As such, the 6FE overtime is not ‘ordinarily worked by persons in the same grade or class’ as you. Rather, it is limited only to those in the deputy sheriff II grade assigned to . . . County corrections facilities that utilize the 12-hour work schedule requiring the [half-hour] of overtime in each pay period.”

She concluded her letter by advising: “If you disagree with the above determination, you have the right to petition for review by requesting an administrative hearing.”

II.

FOLLOWING AN ADMINISTRATIVE HEARING, THE BOARD REJECTS THE HEARING OFFICER’S PROPOSED FINDINGS AND CONCLUSION 6FE OVERTIME COMPENSATION SHOULD BE INCLUDED IN COMPENSATION EARNABLE Szewczyk and Morikawa each timely filed a request for an administrative hearing. During the three-day administrative hearing held in April 2021, the hearing officer was presented with the administrative record, additional documentary evidence proffered by the parties, and live witness testimony.

On November 9, 2021, the hearing officer issued his proposed findings of fact, conclusions of law, and recommendation that Szewczyk’s and Morikawa’s appeals be granted, the 6FE overtime compensation at issue be regarded as compensation earnable for purposes of calculating their

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Related

Stevenson v. Board of Retirement of the Orange County Employees Retirement System
186 Cal. App. 4th 498 (California Court of Appeal, 2010)