Wheeler v. California Department of Employment

193 Cal. App. 2d 829, 14 Cal. Rptr. 589, 1961 Cal. App. LEXIS 1776
CourtCalifornia Court of Appeal
DecidedJuly 19, 1961
DocketCiv. 19703
StatusPublished
Cited by1 cases

This text of 193 Cal. App. 2d 829 (Wheeler v. California Department of Employment) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheeler v. California Department of Employment, 193 Cal. App. 2d 829, 14 Cal. Rptr. 589, 1961 Cal. App. LEXIS 1776 (Cal. Ct. App. 1961).

Opinion

HOYT, J. pro tem. *

The appellant petitioned the court below for a writ of mandate directing the California Department of Employment to grant credit for certain wages received by him in its computation of his entitlement to unemployment compensation benefits. This appeal is from the judgment denying this writ of mandate.

The facts are simple and undisputed. One Joseph Stevenson undertook to build a house intended solely as his private residence, and decided to handle as much of the project himself as he could. Some of the work he subcontracted. For the rest, he hired a superintendent and foreman, and about six carpenters. The appellant was one of the carpenters.

Stevenson’s principal trade or business was operating the Stevenson Equipment Company, a farm equipment distributorship. The services performed by the carpenters were in no way connected with this business, but were rendered Stevenson in his capacity as an individual building his own home.

Construction of the home began in January 1958, and continued intermittently into May 1958. During the calendar quarter ending March 31, 1958, none of the carpenters worked on as many as 24 days. During the succeeding quarter, four of the carpenters, not including appellant, worked on each of at least 24 days. Appellant worked on from 17 to 19 days in the first, and on 8 or 9 in the second of these quarters. He later filed a claim for unemployment benefits. The base period used in determining the amount of his weekly award included these two quarters during which he worked for Stevenson on the home-construction project. The California Department of Employment determined that the four carpenters who worked on each of some 24 days in the quarter ending June 30, 1958, were “covered employees” for the purposes of unemployment insurance benefit wage credits, but that appellant’s services *831 were excluded from “employment” under section 640 of the Unemployment Insurance Code, and that appellant was not entitled to credit for the wages which he received for this work in establishing his award of benefits.

The department’s determination was affirmed by a referee, by the Unemployment Insurance Appeals Board, and by the court below. In each instance the ground of decision was that Stevenson, in constructing his private residence, was not engaged in a “trade or business” within the meaning of section 640 of the Unemployment Insurance Code, and that appellant’s services, having been rendered on fewer than 24 days in either quarter, were therefore excluded from “employment” within the meaning of that section. By this appeal the matter is presented for the first time to the higher courts of this state. We agree with the construction given section 640 by the court below.

Under sections 1280 and 1281 of the Unemployment Insurance Code an individual’s weekly benefit amount and his maximum amount of benefits are based upon “the amount of wages paid to the individual for employment by employers” during the quarter of his base period in which his wages were the highest. The code does not contemplate that all persons performing services shall have credit for all services in determining their unemployment compensation benefit. It contains many exemptions from “employment” though a person may be in the employ of an “employing unit” as defined in section 135. These excluded services are contained in sections 625 through 655 of the code. Section 640 provides: “ ‘Employment’ does not include service not in the course of the employing unit’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for such service is fifty dollars ($50) or more and such service is performed by an individual who is regularly employed by such employing unit to perform such service. For the purposes of this subdivision, an individual shall be deemed to be regularly employed by an employing unit during a calendar quarter only if on each of some 24 days during that quarter or the preceding calendar quarter such individual performs for such employing unit for some portion of the day service not in the course of the employing unit’s trade or business.” For service not performed in the employing unit’s trade or business to be “employment” two things must concur: (1) The employee must be paid for such service in the calendar quarter $50 or *832 more, and (2) such service must be performed by one who is regularly employed by such employing unit to perform such service. An individual is regularly employed by an employing unit during a calendar quarter if on 24 days of that quarter (or the preceding quarter) he performs service for such employing unit which is not in the course of the employing unit’s trade or business.

The Department of Employment has construed the term “trade or business” in a duly adopted rule. Section 640-1 of title 22 of the California Administrative Code reads in part: “(b) 1 Service not in the course of the employing unit’s trade or business’ means service which does not, in any way, promote, advance or further the trade or business of the employing unit, and in no way .tends toward the preservation, maintenance or operation of its business, business premises or business property. ‘Trade or business’ includes any business or professional undertaking irrespective of its size or scope without regard to the principal trade or business of the employing unit.” (Emphasis added.)

We think it clear beyond question that Stevenson’s home-building activity was not within the scope of the term “trade or business” as delineated by the department. The contemporaneous administrative construction of a statute by those charged with its enforcement and interpretation unless clearly erroneous or unauthorized is entitled to great weight. (Coca-Cola Co. v. State Board of Equalization, 25 Cal.2d 918 [156 P.2d 1].) In the case just cited the Supreme Court stated at page 921, “Although not necessarily controlling, as where made without the authority of or repugnant to the provisions of a statute, the contemporaneous administrative construction of the enactment by those charged with its enforcement and interpretation is entitled to great weight, and courts generally will not depart from such construction unless it is clearly erroneous or unauthorized.” In our opinion the interpretation is clearly correct.

Supporting this conclusion are cases decided under the California Workmen’s Compensation Law, an analogous field of social welfare legislation. Section 3352 of the Labor Code excludes from coverage, “Any person whose employment is both casual and not in the course of the trade, business, profession, or occupation of his employer.” It is also provided in section 3356 of the Labor Code that, “ ‘ Trade, business, profession, or occupation of his employer’ includes any undertaking actually engaged in by the employer with some degree *833 of regularity, irrespective of the trade name, articles of incorporation, or principal business of the employer. ’ ’

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Related

Stewart v. Workers' Compensation Appeals Board
172 Cal. App. 3d 351 (California Court of Appeal, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
193 Cal. App. 2d 829, 14 Cal. Rptr. 589, 1961 Cal. App. LEXIS 1776, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheeler-v-california-department-of-employment-calctapp-1961.