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29 Cal. App. 5th 131
Cal. Ct. App. 5th
2018
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Background

  • Plaintiffs are current and former Pacific Bell premises technicians who install/repair U-verse services and must use company vehicles stocked with tools and equipment.
  • Before 2009 technicians picked up vehicles at a Pacific Bell garage and were paid for travel from the garage to first job and back at day's end.
  • In 2009 Pacific Bell introduced an optional Home Dispatch Program (HDP) allowing technicians to keep a company vehicle at home; HDP participants are not paid for pre-8:00 a.m. drive time to first job or for post-shift drive home, but are paid for weekly garage visits to load equipment.
  • HDP vehicles may be used only for company business; drivers must go directly between home and work, may not run personal errands, carry unauthorized passengers, or use cell phones while driving. Participation is voluntary.
  • Plaintiffs brought a class action claiming unpaid "hours worked" for commute time carrying employer equipment; the trial court granted summary adjudication for Pacific Bell and judgment was entered for the company.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether commute time in an employer vehicle under HDP is "hours worked" under the wage order control test HDP restrictions (vehicle-use limits, no errands, direct route, no passengers, phone rules) subject technicians to employer control, so commute time is compensable HDP is voluntary; use of employer vehicle is not required, so technicians are not under employer control during commute Not compensable — control test requires compulsory employer-provided transportation (Morillion); voluntary use is not enough
Whether commute time is compensable under the "suffered or permitted to work" test Transporting employer equipment to/from jobs makes the commute actual work and thus compensable Mere transport of tools/products that does not add time or exertion is not "suffered or permitted" work; delivery/installation at the site is the compensable activity Not compensable — incidental transport of tools/equipment without extra exertion/time does not trigger the test
Whether DLSE advice, workers' comp cases, or federal Portal-to-Portal decisions require compensation here DLSE advice and some federal cases support pay when employees deliver equipment; workers' comp decisions treat accidents during commutes with equipment as within course of employment Those authorities are distinguishable: advice letters are nonbinding, workers' comp decisions address a different legal issue, and federal cases often involve heavy/specialized equipment or different statutory rules Court rejected persuasive weight of DLSE letter and distinguished other authorities; outcome supports no compensation here
Whether summary judgment was appropriate Plaintiffs argued factual disputes (e.g., what was delivered vs. transported) preclude summary judgment Pacific Bell argued stipulated and undisputed facts establish voluntariness and lack of compensable exertion Court affirmed summary judgment for Pacific Bell — no triable issue on the legal tests given the stipulated facts

Key Cases Cited

  • Morillion v. Royal Packing Co., 22 Cal.4th 575 (Cal. 2000) (employer-compulsory transportation that restricts employee activity creates compensable travel time under wage orders)
  • Rutti v. LoJack Corp., 596 F.3d 1046 (9th Cir. 2010) (commute time compensable where employee was required to use company vehicle and was tightly controlled)
  • Alcantar v. Hobart Serv., 800 F.3d 1047 (9th Cir. 2015) (reversal where factual dispute existed over whether use of employer vehicle was voluntary or de facto required)
  • Overton v. Walt Disney Co., 136 Cal.App.4th 263 (Cal. Ct. App. 2006) (employer shuttle time not compensable where use was not required and alternatives existed)
  • D A & S Oil Well Servicing, Inc. v. Mitchell, 262 F.2d 552 (10th Cir. 1958) (federal rule finding travel compensable where driving delivered heavy/specialized equipment integral to job)
  • Taylor v. Cox Commc'ns Cal., LLC, 283 F.Supp.3d 881 (C.D. Cal. 2017) (district court applying Morillion: mere transportation of tools without extra exertion/time is not "suffered or permitted" work)
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Case Details

Case Name: Hernandez v. Pac. Bell Tel. Co.
Court Name: California Court of Appeal, 5th District
Date Published: Nov 15, 2018
Citations: 29 Cal. App. 5th 131; 239 Cal. Rptr. 3d 852; C084350
Docket Number: C084350
Court Abbreviation: Cal. Ct. App. 5th
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    Hernandez v. Pac. Bell Tel. Co., 29 Cal. App. 5th 131