Table Services, Ltd. v. Hickenlooper

257 P.3d 1210, 2011 Colo. App. LEXIS 649, 2011 WL 1587739
CourtColorado Court of Appeals
DecidedApril 28, 2011
Docket09CA2729
StatusPublished
Cited by331 cases

This text of 257 P.3d 1210 (Table Services, Ltd. v. Hickenlooper) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Table Services, Ltd. v. Hickenlooper, 257 P.3d 1210, 2011 Colo. App. LEXIS 649, 2011 WL 1587739 (Colo. Ct. App. 2011).

Opinion

Opinion by

Judge RICHMAN.

In this case, we are called upon to determine the constitutionality of Amendment 42, enacted by Colorado voters in November 2006, for the purpose of raising the minimum hourly wage in Colorado from $5.15 to $6.85, and requiring thereafter an annual adjustment to the minimum wage based on inflation. Plaintiffs, Table Services, LTD, and seven other businesses, appeal the district court's judgment dismissing their challenge to the constitutionality of Amendment 42. We affirm.

I. Background

The material facts are not in dispute. Plaintiffs are owners and operators of restaurants and hotels primarily located in smaller cities and towns in rural areas of Colorado. Plaintiffs are required to abide by minimum wage laws and the minimum hourly wage established pursuant to Amendment 42. Defendants, collectively, are charged with enforcing minimum wage laws throughout the state of Colorado.

Amendment 42, codified as article XVIII, section 15 of the Colorado Constitution, in its entirety states as follows:

Effective January 1, 2007, Colorado's minimum wage shall be increased to $6.85 per hour and shall be adjusted annually for inflation, as measured by the Consumer Price Index used for Colorado. This minimum wage shall be paid to employees who receive the state or federal minimum wage. No more than $3.02 per hour in tip income may be used to offset the minimum wage of employees who regularly receive tips.

In March 2007, the Colorado General Assembly enacted enabling legislation, authorizing the Director of the Division of Labor to "issue only such rules as are necessary to carry out the provisions" of Amendment 42. See § 8-6-108.5(8), C.R.S.2010. In November 2007, the Colorado Department of Labor and Employment, Division of Labor (DOL) issued its first inflation adjustment to *1213 Amendment 42's minimum wage by utilizing a consumer price index calculated by the United States Department of Labor, Bureau of Labor Statistics (BLS), referred to as the Denver-Boulder-Greeley consumer price index (DBG-CPI). This adjustment increased the minimum wage to $7.02 per hour for 2008. Subsequently, the DOL has issued yearly minimum wage adjustments based on the DBG-CPL

The Consumer Price Index (CPT) is published by the BLS and measures the average change over time in the prices paid by urban consumers for a variety of consumer goods and services. See http://www.bls.gov/epi/ cpifaq.htm. The CPI reflects spending patterns for each of two population groups: all urban consumers and all urban wage earners and clerical workers. Id. The BLS annually publishes a national CPI for the entire country, and on a monthly basis publishes a regional CPI for each of four census regions of the United States: Northeast, Midwest, South, and West. Colorado is included in the West region. Additionally, on a semiannual basis, the BLS publishes CPIs for twenty-seven different metropolitan areas, one of which is the DBG-CPL

Long before the enactment of Amendment 42, the DOL had been charged with the creation and enforcement of minimum wages within the state under the Colorado Minimum Wage Act (the Act). §§ 8-6-101 to - 119, C.R.S.2010. The Act provides for the Director of the DOL to determine "the minimum wages sufficient for living wages." § 8-6-106. The Director had last raised the minimum wage in 1997 to $5.15 to match the federal minimum wage. See Colorado Minimum Wage Order No. 22, 7 Code Colo. Regs. § 1108-1. One of the arguments offered for the passage of Amendment 42 was that an increase in the minimum wage was long overdue as the federal government had not raised the minimum wage for nine years. Proponents pointed out that the proposed minimum wage of $6.85 would restore the wage to near its average buying power over the last fifty years, and that adjusting the wage for inflation would guarantee that the wage will not lose its buying power in the future. See Legis. Council of Colo. General Assembly, Analysis of 2006 Ballot Proposals, 554-1, pt. 1, at 11-14 (2006).

In August 2008, plaintiffs filed a complaint challenging the constitutionality of the inflation adjustment provision of Amendment 42. Plaintiffs asserted that the amendment's language providing for annual adjustment to the minimum wage for inflation "as measured by the Consumer Price Index used for Colorado" violated the Fourteenth Amendment because it was impermissibly vague and ambiguous, contending that there is no Colorado-specific CPI. Plaintiffs also asserted that the DOL exceeded its constitutional and statutory authority, acted arbitrarily and capriciously, and abused its discretion by utilizing the DBG-CPI to adjust the minimum wage for inflation because it applied a CPI reflecting inflation in urban areas, not rural areas. Plaintiffs also alleged that Amendment 42 and the application of the DBG-CPI violate their right to equal protection and result in disparate treatment because they "single[ ] out rural business for disparate treatment in comparison to similarly situated urban businesses."

The district court granted defendants' motion to dismiss plaintiffs' complaint under C.R.C.P. 12(b)(5) for failure to state a claim on which relief may be granted. It conelud-ed that Amendment 42 is not unconstitutionally vague because the language "used for" could be construed as a descriptive term of art, rather than a definitional term, as plaintiffs suggested. This descriptive term allows the DOL to choose which CPI to utilize when calculating the inflation adjustment to the minimum wage. As a result, the court found that the text of Amendment 42 created a standard such that persons of ordinary intelligence are not left to speculate or guess at its meaning or application.

Additionally, the district court rejected plaintiffs' substantive due process and equal protection claims. It found that under the rational basis test, the DOL's use of the DBG-CPI was a rational mechanism to measure inflation and to determine Colorado's annual minimum wage adjustment. Finally, the district court concluded that the DOL's use of the DBG-CPI was neither arbitrary, capricious, nor an abuse of discere *1214 tion, and therefore the DOL did not exceed its authority in its application of the local CPL

On appeal, plaintiffs argue only that the trial court erred in dismissing their claims because the Amendment is void for vagueness and the DOL exceeded its authority in applying the DBG-CPI to calculate the annual minimum wage for Colorado.

IL Standard of Review

We review de novo a dismissal of a complaint for failure to state a claim because it involves only questions of law. Dotson v. Bernstein, 207 P.3d 911, 912 (Colo.App.2009).

III. Constitutionality of Amendment 42

Plaintiffs contend that the district court erred in dismissing their constitutional challenge to Amendment 42 as void for vagueness because the phrase "the Consumer Price Index used for Colorado" does not create or identify a measurable standard by which to adjust the minimum wage, and is therefore incapable of being fairly and properly applied. Based on this assertion, we construe plaintiffs' claim as a facial challenge to Amendment 42 because plaintiffs assert that the Amendment is "incapable of valid application." Dias v.

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Cite This Page — Counsel Stack

Bluebook (online)
257 P.3d 1210, 2011 Colo. App. LEXIS 649, 2011 WL 1587739, Counsel Stack Legal Research, https://law.counselstack.com/opinion/table-services-ltd-v-hickenlooper-coloctapp-2011.