Table Services, Ltd. v. Hickenlooper
257 P.3d 1210
Colo. Ct. App.2011Background
- Amendment 42 increased Colorado's minimum wage to $6.85 starting 2007 and required annual inflation adjustments.
- Inflation adjustments are to be based on a CPI used for Colorado, enabling DBG-CPI to be used for Colorado.
- DOL issued enabling regulations and began applying DBG-CPI annually to calculate adjustments (e.g., $7.02 in 2008).
- Plaintiffs, rural-oriented restaurants/hotels, challenged the amendment as void for vagueness and asserted DOL exceeded authority.
- District court dismissed for failure to state a claim, holding the provision not void for vagueness and DBG-CPI a reasonable index; authority affirmed.
- On appeal, plaintiffs argued vagueness and overbroad agency authority; court affirmed the dismissal and upheld Amendment 42 and DOL's use of DBG-CPI.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Vagueness of the CPI phrase | Hicklen v. Amendment 42 is void for vagueness. | Amendment 42 provides a workable standard using the CPI used for Colorado. | Not void for vagueness; reasonable interpretation uses a Colorado-related CPI (DBG-CPI) when appropriate. |
| DOL authority to use DBG-CPI | DOL exceeded authority by selecting DBG-CPI for annual adjustments. | Amendment 42 empowers DOL to determine the CPI used for Colorado; DBG-CPI is reasonable and used for Colorado. | DOLdid not exceed authority; DBG-CPI reasonable interpretation under Amendment 42 and statutory delegation. |
Key Cases Cited
- Hoffman Estates v. Flipside, Hoffman Estates, 455 U.S. 489 (1982) (facial vagueness standard; general terms may be valid if reasonably applied)
- Connally v. General Construction Co., 269 U.S. 385 (1926) (illustrates danger of indefiniteness in local wage provisions)
- United States v. Salerno, 481 U.S. 739 (1987) (requires showing a statute is valid under plausible interpretations)
- Stamm v. City & County of Denver, 856 P.2d 54 (Colo. App. 1993) (generality does not equal vagueness; balanced approach to broad terms)
