Text
- Brewer
v. Patel (1993)
First Dist., Dec 3, 1993
20 Cal.App.4th 1017
ETERSON, P. J.
The issue in this case is whether a motel employee who is
required to live on the motel premises and who, on average,
works no more than five hours a day, must be paid for the
entire time he spends at the motel or simply the time he provides
actual services. We will conclude the employee must be paid
only for the time he provides actual services.
I. Factual and Procedural Background
The relevant facts of this case are not in dispute and may
be summarized as follows.
Respondent Bhulabhai Patel owns a 25-unit motel in Fortuna
known as the Fortuna Motor Lodge. Appellant Gail S. Brewer
worked at the motel for a two-year period beginning in September
1989. Appellant's primary responsibility was as an office
clerk; he answered the motel telephone and checked guests
in and out of their rooms. However, appellant also assisted
with other tasks at the motel such as cleaning the grounds,
doing laundry, and cleaning the rooms. In exchange for this
work, appellant received a salary which started at $750 per
month and eventually increased to $1,150 per month. If appellant
worked a seventh day in any week, he received an additional
day's pay. Appellant was also given free living quarters:
a one bedroom apartment connected to the motel office.
Appellant's duties at the motel required, on average, less
than five hours a day to perform. However, appellant was also
required to keep the motel office open from 6 a.m. to 10 p.m.
every day, and he was generally expected to remain on the
motel premises 24 hours a day. Appellant could leave the motel
if he wished, but he had to let respondent know so that respondent
or someone else could take his place. When appellant was not
actually working, he could relax in his apartment, watch television,
or attend to his own personal needs.
Appellant eventually filed a claim with the state Labor Commissioner
fn. 1 claiming respondent failed to pay overtime wages to
which he was entitled. The Labor Commissioner agreed and awarded
appellant $43,433.58 in overtime pay. Respondent then appealed
the award to the Humboldt County [20 Cal.App.4th 1020] Superior
Court and asked for a de novo hearing as permitted by section
98.2, subdivision (a). fn. 2 At the ensuing trial, the primary
issue was the correct interpretation of a wage order issued
by the IWC which set forth rules governing how resident managers
of apartment houses and motels must be paid. The Labor Commissioner,
who represented appellant in the proceedings, fn. 3 interpreted
the wage order to mean appellant was entitled to compensation
for the entire time he spent at the motel, less certain offsets.
Respondent argued appellant was entitled to be paid only for
the time he actually provided services. The trial judge accepted
this latter interpretation and held appellant was entitled
to no additional wages because he worked less than five hours
per day. This appeal followed.
II.
Discussion
A. Interpretation of Wage Order No. 5-89
[1] The primary issue in this case is the correct interpretation
of a regulation which sets forth rules governing how resident
managers of apartment houses and motels must be paid. The
relevant regulation, Wage Order No. 5-89, states in part:
" 'Hours worked' means the time during which an employee
is subject to the control of an employer, and includes all
the time the employee is suffered or permitted to work, whether
or not required to do so, and in the case of an employee who
is required to reside on the employment premises, that time
spent carrying out assigned duties shall be counted as hours
worked." (Cal. Code Regs., tit. 8, § 11050, subd.
2(H), italics added (hereafter Wage Order No. 5-89).)
The Labor Commissioner, who represents appellant on appeal
(see Gipe v. Superior Court (1981) 124 Cal.App.3d 617, 625-627
[177 Cal.Rptr. 590]), interprets this language to mean that
appellant was entitled to compensation [20 Cal.App.4th 1021]
for the entire time he spent at the motel, less certain allowances
for sleep time and meals. Respondent interprets Wage Order
No. 5-89 to mean that appellant was entitled to compensation
only for the time he actually worked.
We resolve this conflict by applying the well-settled rules
of statutory interpretation. The fundamental rule of interpretation
is to ascertain the intent of the agency issuing the regulation
so as to effectuate the purpose of the law. (See T. M. Cobb
Co. v. Superior Court (1984) 36 Cal.3d 273, 277 [204 Cal.Rptr.
143, 682 P.2d 338].) To determine that intent, we turn first
to the words of the regulation, giving effect to the usual
meaning of the language used, while avoiding an interpretation
which renders any language mere surplusage. (Aguilar v. Association
for Retarded Citizens, supra, 234 Cal.App.3d at pp. 28-29.)
When statutory language is clear, we must apply that language
without indulging in interpretation. (Delaney v. Superior
Court (1990) 50 Cal.3d 785, 800 [268 Cal.Rptr. 753, 789 P.2d
934].)
Wage Order No. 5-89 first states that compensation must be
paid for "the time during which an employee is subject
to the control of an employer, and includes all the time the
employee is suffered or permitted to work ...." This
language describes the general principle applicable in all
hourly employment contexts and means that an employee must
be paid for the time he is at work.
Wage Order No. 5-89 then mandates a special rule for apartment
managers and motel clerks who are obligated to reside on the
work premises. In that situation, only "that time spent
carrying out assigned duties shall be counted as hours worked."
This language is obviously meant to address the special circumstances
of those who are required to reside where they work. An employee
such as this is not always working. At times he may be away
from the work site shopping, or visiting with friends. At
other times, the employee may be on the work premises but
attending to personal matters such as cooking, cleaning, or
watching television. The language quoted above accepts this
reality and states that an employee in this situation must
be compensated only for "that time spent carrying out
assigned duties," in other words, only for the work the
employee actually provides.
Applying these principles to the present case, we note appellant
was required to reside on the motel premises and, thus, was
the type of employee described by Wage Order No. 5-89. Under
the clear language of the regulation, appellant was entitled
to compensation only for "that time [he] spent carrying
out assigned duties." Since appellant's "assigned
duties" took less [20 Cal.App.4th 1022] than five hours
a day to perform, he was entitled to no additional wages.
We conclude respondent's interpretation of the wage order
is correct.
The Labor Commissioner's interpretation is unconvincing for
several reasons. First, by arguing that a resident employee
must be paid for the entire time he spends on the premises
less certain offsets, the Labor Commissioner simply reverts
to the first clause of the wage order which states an employee
must be paid for "the time during which [he] is subject
to the control of an employer." This interpretation fails
to give any meaning to the second clause which states that
resident employees must be paid only for "that time spent
carrying out assigned duties." Indeed, at trial, the
Labor Commissioner admitted his interpretation rendered the
second clause of the wage order "redundant." We
are required to avoid an interpretation which renders any
language of the regulation mere surplusage. (Aguilar v. Association
for Retarded Citizens, supra, 234 Cal.App.3d at pp. 28-29.)
Second, the interpretation advanced by the Labor Commissioner
here is inconsistent with his own previous interpretation
of the regulation. While the Labor Commissioner now claims
a resident employee is entitled to compensation for the entire
time he spends on the work premises, the Labor Commissioner's
own operations and procedures manual states that an employee
who is "required to be on the premises but is free to
engage in personal activities" need not be paid. The
Labor Commissioner's only response is to state that his own
manual is "unartfully drafted."
[2] Finally, while we would normally defer to the Labor Commissioner's
interpretation of the wage order because he is charged with
the enforcement of that regulation (C. E. Buggy, Inc. v. Occupational
Safety & Health Appeals Bd. (1989) 213 Cal.App.3d 1150,
1156 [261 Cal.Rptr. 915]), we see no reason to apply that
rule here. The Labor Commissioner's interpretation renders
a portion of the regulation surplusage, is inconsistent with
his own prior interpretation of the rule, and is contrary
to the plain meaning of the language used. Under these circumstances,
we conclude the Labor Commissioner's interpretation is not
entitled to any deference.
B. Costs Award fn. ***
III.
Disposition
The judgment is reversed
to the extent it awards costs to respondent. In all other
respects, the judgment is affirmed. Each party shall bear
his own costs on appeal.
King, J., and Haning,
J., concurred.
Appellant's petition for
review by the Supreme Court was denied March 3, 1994.
?FN *. Pursuant to California
Rules of Court, rule 976.1(a), this opinion is certified for
publication with the exception of section II.B.
?FN 1. The Labor Commissioner
is the chief of the state Division of Labor Standards Enforcement
(see Lab. Code, §§ 21 & 79) which administers
and enforces regulations issued by the state Industrial Welfare
Commission (IWC). (See Aguilar v. Association for Retarded
Citizens (1991) 234 Cal.App.3d 21, 26 [285 Cal.Rptr. 515];
Keyes Motors, Inc. v. Division of Labor Standards Enforcement
(1987) 197 Cal.App.3d 557, 559 [242 Cal.Rptr. 873].) The IWC
regulates wages, hours, and working conditions for California
employees. (Lab. Code, § 1173.)
All subsequent statutory
references are to the Labor Code.
?FN 2. Section 98.2, subdivision
(a) provides, "Within 10 days after service of notice
of an order, decision, or award the parties may seek review
by filing an appeal to the justice, municipal, or superior
court, in accordance with the appropriate rules of jurisdiction,
where the appeal shall be heard de novo."
?FN 3. Section 98.4 provides,
in part, "The Labor Commissioner may, upon the request
of a claimant financially unable to afford counsel, represent
such claimant in the de novo proceedings provided for in Section
98.2. In the event that such claimant is attempting to uphold
the amount awarded by the Labor Commissioner and is not objecting
to any part of the Labor Commissioner's final order, the Labor
Commissioner shall represent the claimant."
?FN *. See footnote, ante,
page 1017.
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