Text
- Hernandez
v. Mendoza (1988)
Court of Appeals of California, Second Appellate District, Division
Six. February 18, 1988
199 Cal. App.3d 721
STONE (S. J.), P. J.
Wilfredo Tovar Hernandez appeals from a superior court judgment
granting Raymond and Delia Mendoza's (respondents) motion
for judgment pursuant to Code of Civil Procedure section 631.8.
The judgment follows a trial de novo in superior court under
Labor Code section 98.2, which was requested by respondents
to challenge an award of overtime wages to appellant by the
Labor Commissioner. [199 Cal.App.3d 724]
We reverse.
Background
Appellant was hired as the butcher in respondents' grocery
store on November 2, 1983.
Respondents agreed to pay appellant a fixed weekly salary
of $300. Appellant's employment with respondents was terminated
in May 1985. It was undisputed in the trial court that respondents
maintained lawful time records for appellant pursuant to state
labor regulations from August 1, 1984, until his termination.
During this period, appellant apparently worked a 40-hour
week and was compensated by the hour rather than by the prior
fixed salary.
The period in dispute was from the commencement of appellant's
employment in November 1983 through July 31, 1984. Appellant
testified that he orally agreed to work for $300 per week
and there was no discussion between the parties about the
hours he would work or about an hourly wage. Appellant also
testified that during the disputed period he worked 7 days
every week for 13 hours every day (from 8 a.m. to 9 p.m.,
the store's hours), except for a few days off to visit relatives
and a few hours off now and then for personal business. Appellant
further presented to the trial court a calendar he filled
out at the Labor Commissioner's office in May 1985, almost
a year after the disputed period ended, showing the days and
hours he worked. The calendar was solely from appellant's
memory.
Respondent Raymond Mendoza testified that when appellant was
hired, the parties orally agreed he would receive the minimum
hourly wage of $3.35. Respondent also testified that during
the disputed period, appellant agreed to work nine hours a
day seven days a week (excluding break periods). Respondent
contended that he paid appellant an hourly overtime wage of
$5.02, or one and one-half times the minimum wage, for hours
in excess of forty hours per week and double time for the
seventh day of the week. Since the regular and overtime wages
for 63 weekly hours fell below the $300 weekly salary, respondent
stated that he paid appellant $300 anyway as a "bonus"
because appellant insisted on that salary. Respondents attempted
to support their position by introducing time cards allegedly
maintained by them during the subject period.
However, respondent admitted that appellant may have worked
12 hours per day for an 8-day period when he was first hired.
Respondent further admitted to the trial judge that he utilized
false figures as to the hours [199 Cal.App.3d 725] appellant
worked since appellant worked irregular hours and respondent
wanted the time cards to be consistent with the $300 per week
salary.
The trial court found that the time cards presented by respondents
for the period November 1983 through July 1984 were "clearly
made up" by respondents. Nonetheless, the judge declared
that the issue of respondents' credibility was moot in view
of the unbelievability of appellant's calendar.
The judge concluded: "The court finds that the [appellant]
has not carried his burden of proof with regard to certainty.
... Whereas it is and does appear reasonable that the [appellant]
has in fact worked some overtime, the court just cannot tell
from the evidence submitted how much overtime and the court
is not allowed to guess."
Discussion
Appellant contends the trial court erred as a matter of law
in concluding that he failed to carry his burden of proof
with regard to the number of overtime hours he accrued. We
agree.
[1] Our review of this case is guided by the principle that
Labor Code section 98.2 provides for a de novo trial in superior
court on appeal from an order or decision by the Labor Commissioner.
This means that superior court proceedings constitute a new
trial in the fullest sense and the parties may introduce any
relevant evidence not presented at the administrative hearing.
(Sales Dimensions v. Superior Court (1979) 90 Cal.App.3d 757,
762-763 [153 Cal.Rptr. 690].) The findings of the Labor Commissioner
are entitled to no weight, and review is accorded to the facts
presented to the superior court and not to the decision of
the commissioner. (Id., p. 763.)
Respondents hired appellant under an oral agreement that he
would work as their butcher and receive compensation of $300
per week. No evidence existed that the parties specifically
and mutually agreed at any time prior to August 1, 1984, to
the number of hours per day or per week appellant would work
or to an hourly wage. Respondents' testimony that appellant
agreed to work nine hours per day seven days per week at the
minimum wage was unsupported by any independent, objective
evidence and flatly contradicted by appellant.
[2] As such, the $300 per week compensation earned by appellant
from November 1983 through July 1984 must be construed as
the payment he received for a regular workweek. Absent an
explicit, mutual wage agreement, a fixed salary does not serve
to compensate an employee for the number of hours worked under
statutory overtime requirements. (Lab. [199 Cal.App.3d 726]
Code, § 510; Alcala v. Western Ag Enterprises (1986)
182 Cal.App.3d 546, 550-551 [227 Cal.Rptr. 453], citing Brennan
v. Elmer's Disposal Service, Inc. (9th Cir. 1975) 510 F.2d
84, 86.) fn. 1
Wage order No. 7-80, effective January 1, 1980, covers the
mercantile industry in California. It expressly provides in
pertinent part in subdivision (3)(A), that "employees
shall not be employed more than eight (8) hours in any workday
or more than forty (40) hours in any workweek unless the employee
receives one and one-half (1 1/2) times such employee's regular
rate of pay for all hours worked over forty (40) in the workweek."
(Cal. Code Regs., tit. 8, § 11070.)
It was undisputed in the trial court that appellant worked
more than 8 hours per day and more than 40 hours per week
from November 1983 through July 1984. According to respondents'
own testimony, appellant at least worked 63 hours per week
during the disputed period and 12 hours per day in one 8-day
period. Since there was no evidence of a wage agreement between
the parties that appellant's $300 per week compensation represented
the payment of minimum wage or included remuneration for hours
worked in excess of 40 hours per week, the record shows without
question that appellant incurred damages of uncompensated
overtime during the disputed period. Indeed, the trial judge
so suggested.
[3] It is a fundamental principle of American jurisprudence
that for every wrong there is a remedy, and that, unless countered
by public policy, an injured party should be compensated for
all damage proximately caused by the wrongdoer. (Barbara A.
v. John G. (1983) 145 Cal.App.3d 369, 376 [193 Cal.Rptr. 422];
Civ. Code, § 3523.) In light of the uncompensated overtime
hours accrued by appellant, the trial court failed to fulfill
its duty to ascertain and award the amount of damages owed
to appellant.
[4] We disagree with respondents that the trial court's finding
that appellant did not carry his burden of proof involved
a factual decision which is not to be disturbed on appeal.
The trial court's conclusion that appellant's offer of proof
of the number of overtime hours would cause the court to guess
at the amount of damages was an error of law. (See Brock v.
Seto (9th Cir. 1986) 790 F.2d 1446, 1448.) Once an employee
shows that he performed work for which he was not paid, the
fact of damage is certain; the only uncertainty is the amount
of damage. (Ibid., citing Anderson v. Mt. Clemens Pottery
Co. (1945) 328 U.S. 680, 688 [90 L.Ed. 1515, 1523, 66 S.Ct.
1187].) In such a case, it would be a perversion of justice
to deny all relief to [199 Cal.App.3d 727] the injured person,
thereby relieving the wrongdoer from making any restitution
for his wrongful act. (Brock v. Seto, supra.)
[5] We reject respondents' further contention that appellant
failed to meet his burden of proof in showing the amount of
overtime hours. The trial court found that respondents' time
records during the disputed period were false. Respondents
were thus in violation of wage order No. 7-80, requiring every
employer to "keep accurate information with respect to
each employee including the following: ... Time records showing
when the employee begins and ends each work period."
(Cal. Code Regs., tit. 8, § 11070, subd. 7(A)(3).) The
United States Supreme Court decided in Anderson v. Mt. Clemens
Pottery Co., supra, that in cases such as the present one,
where the employer has failed to keep records required by
statute, the consequences for such failure should fall on
the employer, not the employee. In such a situation, imprecise
evidence by the employee can provide a sufficient basis for
damages. (328 U.S. 687; Reeves v. International Tel. and Tel.
Corp. (9th Cir. 1980) 616 F.2d 1342, 1351.)
Although the employee has the burden of proving that he performed
work for which he was not compensated, public policy prohibits
making that burden an impossible hurdle for the employee.
(Anderson v. Mt. Clemens Pottery Co., supra, 328 U.S. 687.)
"[W]here the employer's records are inaccurate or inadequate
and the employee cannot offer convincing substitutes a ...
difficult problem arises. The solution, however, is not to
penalize the employee by denying him any recovery on the ground
that he is unable to prove the precise extent of uncompensated
work. Such a result would place a premium on an employer's
failure to keep proper records in conformity with his statutory
duty; it would allow the employer to keep the benefits of
an employee's labors without paying due compensation ....
In such a situation we hold that an employee has carried out
his burden if he proves that he has in fact performed work
for which he was improperly compensated and if he produces
sufficient evidence to show the amount and extent of that
work as a matter of just and reasonable inference. The burden
then shifts to the employer to come forward with evidence
of the precise amount of work performed or with evidence to
negative the reasonableness of the inference to be drawn from
the employee's evidence. If the employer fails to produce
such evidence, the court may then award damages to the employee,
even though the result be only approximate." (Id., pp.
687-688 [90 L.Ed. at p. 1523].) (See also Brock v. Seto, supra,
790 F.2d 1447-1448; Romaca v. Meyer (1952) 114 Cal.App.2d
375, 384 [250 P.2d 347].)
Here, appellant testified that on most days from November
1983 through July 1984 he was required to be on his employers'
premises from 8 a.m. until 9 p.m. or during the store's regular
hours. In concluding that appellant's [199 Cal.App.3d 728]
evidence compelled it to perform guesswork as to the amount
of damages, the trial court ignored the legal standard established
in Anderson. (See Brock v. Seto, supra, p. 1448.) It is the
trier of fact's duty to draw whatever reasonable inferences
it can from the employee's evidence where the employer cannot
provide accurate information. (Id., pp. 1448-1449; Anderson
v. Mt. Clemens Pottery Co., supra, 328 U.S. 693.)
We need not discuss appellant's final contentions concerning
the correct method of calculating his overtime pay. Since
no such calculations have yet been made by the trial court,
a discussion of the subject would be premature. We, however,
agree with appellant that the law governing the appropriate
method of calculating overtime wages is contained in Skyline
Homes, Inc. v. Department of Industrial Relations (1985) 165
Cal.App.3d 239 [211 Cal.Rptr. 792]; accord, Alcala v. Western
Ag Enterprises, supra, 182 Cal.App.3d at p. 551.
The judgment is reversed and vacated. The case is remanded
to the superior court to permit the trial judge to award damages
to appellant consistent with the views expressed herein.
Costs on appeal are awarded to appellant.
Gilbert, J., and Abbe, J., concurred.
?FN 1. The Alcala court noted that, since California's wage
laws are patterned on federal statutes, federal cases construing
those federal statutes provide persuasive guidance to state
courts. (Id., p. 550.)
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