Vail v. Coffman Engineers, Inc.

778 P.2d 211, 29 Wage & Hour Cas. (BNA) 744, 1989 Alas. LEXIS 99, 1989 WL 91958

• Court: Alaska Supreme Court
• Decided: August 4, 1989
• Docket: S-2861
• Status: Published

Opinions

OPINION

Before MATTHEWS, C.J., and RABINOWITZ, BURKE, COMPTON and MOORE, JJ.

MOORE, Justice.

This appeal addresses the extent of an employer’s obligation to provide a former employee return transportation pursuant to AS 23.10.380(a). The superior court ruled that the employer’s statutory duty was limited to return of the employee to the place of recruitment. We affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND

In 1982, Coffman Engineers, Inc. (Coff-man), hired James Vail to work in Coff-man’s Anchorage office. Coffman paid the entire cost of moving Vail, his family, pets, household goods and vehicles from Warren, Oregon, to Anchorage.¹

In 1987, Coffman laid off Vail due to lack of work. Despite a timely demand by Vail, Coffman refused to return the Vails and their goods to Oregon. Vail sued Coffman, claiming that AS 23.10.380(a) and 8 AAC 20.030(1) required Coffman to provide return transportation expenses exceeding $16,800.²

Vail and Coffman cross-moved for summary judgment. Superior Court Judge Douglas J. Serdahely ruled that the statute entitled Vail to recover return transportation expenses for himself, but not for his family or belongings. Judge Serdahely then invalidated 8 AAC 20.030(1) to the extent that it imposed a broader duty than the statute.

Vail petitioned for review. We granted review and gave the Alaska Department of Labor leave to appear as an amicus curiae in support of the stricken regulation.

II. THE RETURN TRANSPORTATION STATUTE

Vail argues that the superior court erred in concluding that AS 23.10.380(a) requires Coffman to pay return transportation expenses only for Vail. Coffman contends that the superior court correctly interpreted the statute.

The extent of an employer’s statutory obligation to provide return transportation presents a question of law. Because the definition of “return transportation” does not require special agency knowledge or expertise, we will apply the independent judgment standard of review. See Matanuska-Susitna Borough v. Hammond, 726 P.2d 166, 175 (Alaska 1986); National Bank of Alaska v. State, Dep’t of Revenue, 642 P.2d 811, 815 (Alaska 1982). Even under this standard, we may give some weight to a longstanding and consistent administrative interpretation of the statute. 642 P.2d at 815 n. 5.

The interpretation of a statute begins with an examination of the language of the statute construed in light of its purpose. J & L Diversified Enter. v. Municipality of Anchorage, 736 P.2d 349, 351 (Alaska 1987).

Public policy dictates that an employer must provide return transportation to an employee’s place of recruitment upon termination of employment. AS 23.10.375. Accordingly, when an employee terminated for good cause makes a timely request,

[a]n employer who furnishes, finances, agrees to furnish or finance, or in any way provides transportation for a person from the place of hire to a point inside or outside the state to employ the person shall provide the person with return transportation to the place of hire from which transportation was furnished or financed, or to a destination agreed upon by the parties....

AS 23.10.380(a). This statute is “considered a part of every contract of hire involving transportation of an employee to and from this state.” AS 23.10.390. It was enacted to provide a remedy for seasonal employees who might otherwise be stranded at remote job sites and become a burden on the economic resources of the state. Letter from Lew L. McFarren, Assistant Commissioner of Labor (Sept. .24, 1969).

The Department argues that AS 23.10.-380 is a remedial statute; therefore, it should be liberally construed. See State v. O’Neill Investigations, Inc., 609 P.2d 520, 528 & n. 20 (Alaska 1980). However, we believe that the statute imposes on the employer a minimal obligation to provide return transportation to any employee it paid to relocate at the time of hire. This result serves the statutory purpose without subjecting employers to onerous and un-bargained-for obligations to their former employees.

III. THE RETURN TRANSPORTATION REGULATION

Vail and the Department argue that, even if the statute does not require Coffman to provide full return transportation expenses, 8 AAC 20.030(1) (eff. 4/17/74) imposes a broader duty on the employer. Coffman contends that the regulation is invalid because it is not reasonably necessary to carry out the statutory purpose.

A regulation promulgated by an administrative agency must be consistent with and reasonably necessary to carry out the purpose of the authorizing statute. State v. Alyeska Pipeline Serv. Co., 723 P.2d 76, 78 (Alaska 1986); AS 44.62.030. A regulation is consistent with a statute if it bears a reasonable relationship to the statutory objective. 723 P.2d at 78. The burden of proving that the regulation is invalid rests with the party challenging it. Id.

The Department has promulgated a regulation defining return transportation as “all transportation and costs as originally furnished to, financed for, or provided to an employee by an employer.” 8 AAC 20.030(1). If the regulation is valid, Coff-man must pay to transport the Vails and their goods back to Oregon, because Coff-man provided their transportation from Oregon to Alaska at the time of hire. .

Although the regulation was first promulgated in 1974, and the substance of the Department’s interpretation has not changed in the ensuing fifteen years, we do not believe that the regulation is reasonably necessary to carry out the statutory purpose of securing return transportation for seasonal employees.

The decision of the superior court is AFFIRMED.

1 . Among other things, Coffman paid to move four people, a car, a pick-up truck, a boat and trailer, and an unspecified number of dogs.

2 . Vail also claimed that he was entitled to collect ten days’ subsistence pay, AS 23.10.380(b); unpaid overtime compensation, AS 23.05.140; unpaid accrued sick leave, id.; and statutory penalties. These claims are not at issue on appeal.