AMERICAN NATIONAL INSURANCE COMPANY, Plaintiff and Appellant, v. FAIR EMPLOYMENT AND HOUSING COMMISSION, Defendant and Respondent.
L.A. No. 31408
Supreme Court of California
Oct. 21, 1982.
November 24, 1982
32 Cal. 3d 603
Paul, Hastings, Janofsky & Walker, Robert F. Walker, William S. Waldo, George Petrow and Susan Gans for Plaintiff and Appellant.
Ilbert Phillips, Burke, Williams & Sorensen and Richard R. Terzian as Amici Curiae on behalf of Plaintiff and Appellant.
George Deukmejian, Attorney General, Richard D. Martland and Arthur C. de Goede, Assistant Attorneys General, Henry G. Ullerich and David S. Chaney, Deputy Attorneys General, for Defendant and Respondent.
Marilyn Holle, Daniel Brzovic, Mary Anne Ralyea, Elena H. Ackel, Marjorie Gelb, Prudence Kay Poppink, David Benjamin Oppenheimer, Joan Messing Graff, Rebecca I. McKee, Félix Velarde-Muñoz, Robert J. Funk and Deborah Kaplan as Amici Curiae on behalf of Defendant and Respondent.
OPINION
NEWMAN, J.—Succinctly, the proceedings below and facts concerning us here were summarized by the Presiding Justice of Divison Four in the Second District of the California Courts of Appeal as follows:
“This is an appeal by an employer from a judgment of the superior court upholding a decision of the State Fair Employment Practice Commission on review by administrative mandamus. The issue before the commission was whether the employer violated
Labor Code section 1420 in refusing employment to a man because of his elevated blood pressure which did not impair his ability to work but which the employer believed, upon medical advice, would expose him to a greater than normal risk of disability or death. . . .“In June 1975, American National Insurance Company (hereafter Company) employed Dale Rivard as a sales and debit agent, subject to approval of the home office. Between 1963 and 1968, Rivard had been employed by the Company for similar work. After six weeks, the Company terminated the employment because he did not meet the Company‘s health requirements for that position.
“The work of a sales and debit agent is to go door-to-door in a specified residential district selling insurance and collecting premiums. Agents are expected to meet certain sales quotas and to be current in the collection of premiums. The Company regards the work of a sales and debit agent as stressful, and as a matter of policy does not hire persons with elevated blood pressure for that work. When the Company terminated his 1975 employment, Rivard filed a complaint wih the commission alleging that he had suffered discrimination because of a physical handicap in violation of
Labor Code section 1420 .1“Following an administrative hearing, the commission decided that the Company had discriminated unlawfully against Rivard and ordered his reinstatement with back pay. The Company then petitioned the superior court for review of the commission‘s decision. The court found that the commission‘s findings were supported by the evidence and concluded that ‘high blood pressure is a protected physical handicap under the California Fair Employment Practice Act,
Labor Code section 1410 et seq. [FEHA].’ Accordingly, the superior court denied the Company‘s petition. This appeal is from that judgment.”
SUBSTANTIAL EVIDENCE
The Company contends that the superior court erred first, because it refused to exercise its independent judgment on the evidence and, instead, used the substantial evidence test; second, because, regardless of the evidence, the FEHA does not apply to high blood pressure.
Northern Inyo Hospital v. Fair Empl. Practice Com. (1974) 38 Cal.App.3d 14, 23 [112 Cal.Rptr. 872] states: “Applying Bixby guidelines, Hospital‘s right to establish its employment practices and procedures and to impose conditions of employment can in no sense be termed a fundamental vested right. While the right to pursue a lawful business or occupation is a fundamental right [citing cases], there is no vested right to conduct a business free of reasonable governmental rules and regulations (see Bixby v. Pierno, supra, 4 Cal.3d 130, 145-46 [93 Cal.Rptr. 234, 481, P.2d 242]; Beverly Hills Fed. S & L Assn. v. Superior Court, 259 Cal.App.2d 306, 316-317 [66 Cal.Rptr. 183]).” We agree with that conclusion, and use here of the substantial evidence test therefore was appropriate. (Cf. Stearns v. Fair Employment Practice Com. (1971) 6 Cal.3d 205, 211 [98 Cal.Rptr 467, 490 P.2d 1155].)
The trial court found as a fact that “[t]he record did not support petitioner‘s contention that the real party in interest could not perform his duties or that he could not perform such duties in a manner which would not endanger his health or safety or the health or safety of others.” We agree with that finding, and the following excerpt from respondent‘s brief illuminates reasons that to us seem persuasive: “Despite appellant‘s doctor‘s claim that Rivard would not take his medicine, it was uncontroverted that the appellant had a general policy of excluding all persons from the debit agent category if they manifested high blood pressure. It was also uncontroverted that the appellant‘s policy had nothing to do with the ability of [Rivard] to do the job. Inasmuch as these facts were undisputed, the trial court did not have to apply any standard of review with respect to them. There was never any personal examination of Rivard by the appellant‘s physician. There was no prediction as to how long Rivard could work. Instead, appellant‘s physician assumed that once Rivard fit into a specific category, he was to be summarily disqualified. There was absolutely no evidence to qualify the employer‘s physician as a heart specialist. Indeed, at one point in the hearing the appellant‘s physician admitted to relying on morbidity tables which insurance companies use to adjust insurance rates. Such a person could hardly be considered an expert
PHYSICAL HANDICAP
What next we must decide is whether the Legislature intended that in certain cases high blood pressure may be a “physical handicap” under the FEHA. That statute proscribes unjustified discrimination based on “race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, sex, or age . . . .”3
Further, the Company urges, “the protected ‘physical handicaps’ are major physical impairments similar to those listed in the definition.” (Italics in original.) By no means, though, do the Legislature‘s words imply that only major ills or defects are covered. Not all “impairment[s] of sight, hearing, or speech” are major; nor are all “impairment[s] of physical ability because of loss of function or coordination . . . .” To infer that nonmajor impairments are excluded would flout even the coverages that the statute expressly identifies.
Finally, says the Company, “a large number of physical impairments, such as epilepsy, cerebral palsy and arthritis, presumably are protected.” Those three ills are physical, and often in fact they are handicapping. In neither the statute‘s words nor its legislative history, however, do we perceive an intent to include epilepsy, cerebral palsy, and arthritis while excluding ills such as high blood pressure.
What then is a “physical handicap” for purposes of the statute? Webster‘s tells us that a handicap is “a disadvantage that makes achievement unusually difficult.” (Webster‘s New Internat. Dict. (3d ed. 1961) p. 1027.5) Obviously a condition of the body which has that disabling effect is a physical handicap.
Did the Legislature intend to cover only those health problems that are presently disabling? We think not. Indeed it made present inability to perform a particular job efficiently, safely, and without danger to health one of the few defenses to a charge of discrimination. (
To limit “handicap” to present disabilities would defy logic. In effect that would proscribe discrimination based on current, manifest, physical disfunction while allowing exclusion on the basis of conditions—like high blood pressure—that may handicap in the future but have no presently disabling effect. We should not conclude that the Legislature intended any such anomalous result.
The Company argues next that hypertension is more appropriately deemed a “medical condition” than a handicap. It notes that the Legislature prohibited discrimination on grounds of “medical condition” but curiously restricted the reach of that term to cured or rehabilitated cancer. (See
We need not decide whether that bizarre definition implies that an unrehabilitated and uncured cancer patient is never physically handicapped. Even more bizarre, though, would be our presuming a legislative conclusion that high blood pressure is always a medical condition, never a physical handicap, and thus is unprotected by the statute. Common knowledge is to the contrary; high blood pressure is physical, and often it is handicapping. (See too
The judgment is affirmed.
Bird, C. J., Kaus, J., Broussard, J., and Reynoso, J., concurred.
In my view the Legislature has not defined “physical handicap” within the meaning of the antidiscrimination law to include ordinary high blood pressure, and respondent commission does not have the power to rewrite the statute to satisfy its belief that such a medical condition should be covered by that law.
The California Fair Employment and Housing Act makes it an “unlawful employment practice” for an employer to discriminate in hiring, training, discharge, or compensation of employees because of “race, religious creed, color, national origin, ancestry, physical handicap, medical condition, marital status, or sex. . . .” (Italics added.) (
The majority first make much of the fact that the statute says ““Physical handicap’ includes,” rather than ““Physical handicap’ means,” and invoke the general rule that the verb “includes” is ordinarily a word of enlargement rather than limitation. (See, e.g., People v. Western Air Lines, Inc. (1954) 42 Cal.2d 621, 639 [268 P.2d 723].) But the rule, which is no more than an aid to construction, is of little if any weight when the Legislature has chosen not to use these terms consistently in the same statute. Such is the case here. Although
Although the majority purport to give effect to
Secondly, the majority‘s treatment of the phrase “loss of function” makes the rest of the statute surplusage. If every “impairment of physical ability” amounts to a protectible physical handicap, that phrase alone
The same reading also expands the meaning of the phrase “loss of function” far beyond that intended by the Legislature. The statute identifies three classes of physical handicaps protected by the act.2 The first class is a total or partial loss of three principal modes of human communication, i.e., sight, hearing, and speech. This was an easy category for the Legislature to define, including as it does such traditional handicaps as blindness or impaired vision, hearing loss, and speech impediments.
More difficult to define was the second type of handicap that the act was intended to cover. When the bill defining physical handicap was first introduced, it described this category simply as “being crippled.” (Assem. Bill No. 1126 (1973-1974 Reg. Sess.) § 3.) The phrase was evidently outdated, and prior to final passage it was amended into its present form. Yet in its old-fashioned way it did express the Legislature‘s intent: in ordinary usage and common understanding, to be “crippled” means to suffer from impaired physical mobility because of the total or partial loss of use of one or more limbs, extremities, or major joints. In most cases such impairment results when the limb is missing (e.g., because of birth defect or amputation), or when the limb is intact but the person cannot move it because of paralysis caused by disease (e.g., polio, multiple sclerosis, muscular dystrophy, or stroke) or trauma (e.g., paraplegia or quadriplegia) or because of immobility of the joint (e.g., degenerative arthritis), or when the limb is movable but the person cannot always
In substituting the present definition for the phrase “being crippled,” the Legislature merely restated this traditional meaning in contemporary words. Viewed in the light of its history, therefore, “loss of function” does not bear the majority‘s broad meaning of any impairment in the functioning of any part of the body; it means, rather, a loss of mobility or strength (i.e., “impairment of physical ability“) resulting from a total or partial deprivation of the use of a major structural component of the body, caused by a substantial impairment analogous to an amputation or permanent failure of coordination or control.
I am fully aware, of course, that when the statute is thus understood it excludes a number of other health problems that could loosely be called “handicaps.” But that exclusion is a legislative decision: an examination of the rest of
Although the majority does not find it necessary to reach the point, I cannot refrain from commenting on a major contention advanced by the commission in this case, to wit, that its reading of the statute should be adopted because it comports with “longstanding administrative construction” followed by “legislative acquiescence.” The claim is not only without merit, it also exposes a startling case of an administrative agency rewriting a legislative definition to suit its opinion of what its jurisdiction should be but, under the statute, is not.
To begin with, the commission‘s construction of this statute is not “longstanding” but both recent and ad hoc. The statutory definition of physical handicap was added in 1973, and the present litigation began when Rivard filed his complaint in 1975. It was not until 1978, however, that the commission published its initial “guidelines” defining physical handicap; and it was not until 1980—five years after this litigation began—that it adopted its first regulations on the topic, formalizing those guidelines. Surely it is bootstrapping when an agency, after being haled into court to defend its interpretation of a statute, proceeds to adopt a regulation embodying that view and then relies on the same regulation as evidence of “longstanding administrative construction.” We recently reiterated our admonition that we will give little or no weight to such an ad hoc expression of an administrative “expertise.” (Jones v. Tracy School Dist. (1980) 27 Cal.3d 99, 107 [165 Cal.Rptr. 100, 611 P.2d 441].) The reason, of course, is that “The self-interest inherent in such a process removes from the [regulation] the appearance of impartiality necessary to justify any reliance by the court.” (Carmona v. Division of Industrial
Even more distressing is the fact that the interpretation adopted by the commission would wholly “rewrite the statute in the guise of construing it” (Solberg v. Superior Court (1977) 19 Cal.3d 182, 198 [137 Cal.Rptr. 460, 561 P.2d 1148]). As discussed above, the statute defines “physical handicap” in part as “impairment of physical ability because of . . . loss of function,” and that clause has a limited meaning when read in context and in the light of history. The commission claims that its regulation embodies an “administrative construction” of the same clause of the statute. Yet upon closer examination it appears that the regulation actually redefines the clause to include a list of health problems that is positively breathtaking in scope—indeed, that covers virtually every possible disorder of every known part of the human body.7
The wording of the regulation is so expansive it compels me to wonder what statute it really implements; I cannot believe the commission found all these ailments in the modest clause of the California act now before us.8 For example, under this regulation an ulcer would qualify as a protected
A strong clue to the origin of this regulation appears in the fact that it contains some obvious redundancies. Thus it expressly includes, among the impairments of “physical ability because of loss of function,” impairments of sight and hearing (i.e., any disorder or loss affecting “special sense organs“) and of speech (i.e., any disorder or loss affecting the respiratory system, “including speech organs“). (See fn. 8, ante.) Yet the same impairments of sight, hearing and speech are expressly defined as physical handicaps by other, more specific portions of the regulation.10 Again, the regulation further defines impairment of “physical ability because of loss of function” to include any “anatomical loss” affecting the musculoskeletal system or the skin. (See fn. 8, ante.) Yet exactly the same impairment is also declared to be a physical handicap by a more specific part of the definition.11
These redundancies suggest that the commission borrowed the language of its regulation from a source that was largely inappropriate for the purpose. Although the commission does not acknowledge this source in its briefs, it appears to be certain federal regulations implementing portions of the
That is the case at hand. In sharp contrast to the specific categories of physical impairments listed in the California statutory definition (fn. 2, ante), the federal statute declares generally that a “handicapped individual” is, for its purposes, any person who has “a physical or mental impairment” that “substantially limits one or more of such persons’ major life activities,” or who “has a record” of such an impairment, or who is merely “regarded as having” the impairment. (
It is settled that “Administrative regulations that alter or amend the statute or enlarge or impair its scope are void and courts not only may, but it is their obligation to strike down such regulations.” (Morris v. Williams (1967) 67 Cal.2d 733, 748 [63 Cal.Rptr. 689, 433 P.2d 697], and cases
We have recently and repeatedly invoked this rule in a variety of settings. (See, e.g., J. R. Norton Co. v. Agricultural Labor Relations Bd. (1979) 26 Cal.3d 1, 29 [160 Cal.Rptr. 710, 603 P.2d 1306]; Mosk v. Superior Court (1979) 25 Cal.3d 474, 499 [159 Cal.Rptr. 494, 601 P.2d 1030]; Sanchez v. Unemployment Ins. Appeals Bd. (1977) 20 Cal.3d 55, 67 [141 Cal.Rptr. 146, 569 P.2d 740]; Bright v. Los Angeles Unified Sch. Dist. (1976) 18 Cal.3d 450, 459, 464 [134 Cal.Rptr. 639, 556 P.2d 1090]; Cooper v. Swoap (1974) 11 Cal.3d 856, 864 [115 Cal.Rptr 1, 524 P.2d 97]; Gibson v. Unemployment Ins. Appeals Bd. (1973) 9 Cal.3d 494, 498, fn. 6 [108 Cal.Rptr. 1, 509 P.2d 945]; Mooney v. Pickett (1971) 4 Cal.3d 669, 681 [94 Cal.Rptr. 279, 483 P.2d 1231].)
We should therefore refuse to follow the commission‘s overbroad administrative construction of the act‘s definition of “physical handicap.” I do not doubt, of course, that the commission is motivated by a sincere desire to implement the salutary purposes of this legislation. Nor do I underestimate the practical difficulties faced by the commission in doing so. But in California the prohibition against employment discrimination is wholly a creature of statute: the provisions of this act “are in no sense declaratory of preexisting common law doctrine but rather include areas and subject matters of legislative innovation, creating new limitations on an employer‘s right to hire, promote or discharge its employees.” (Gay Law Students Assn. v. Pacific Tel. & Tel. Co. (1979) supra, 24 Cal.3d 458, 490.) If the definition of physical handicap set forth in the act is found to be
For the reasons stated, I would hold that the challenged decision of the commission was in excess of its jurisdiction, and that the superior court erred in ruling otherwise.
Richardson, J., concurred.
Appellant‘s petition for a rehearing was denied November 24, 1982. Newman, J., did not participate therein. Richardson, J., was of the opinion that the petition should be granted.
Notes
““(a) For an employer, because of the race, religious creed, color, national origin, ancestry, physical handicap, or sex of any person, to refuse to hire or employ him or to refuse to select him for a training program leading to employment, or to bar or to discharge such person from employment or from a training program leading to employment, or to discriminate against such person in compensation or in terms, conditions or privileges of employment. . . .‘” Other states have adopted statutory definitions of physical handicap that do use the phrase “including, but not limited to.” (See, e.g., Matter of Unlawful Employment Practices, etc. (1977) 280 Ore. 163 [570 P.2d 76, 77]; Providence Journal Company v. Mason (1976) 116 R.I. 614 [359 A.2d 682, 684, fn. 2.])
(1) impairment of
(a) sight, or
(b) hearing, or
(c) speech; or
(2) impairment of physical ability because of
(a) amputation, or
(b) loss of function, or
(c) loss of coordination; or
(3) “any other health impairment which requires special education or related services.”
We may put aside the last category in this case. Despite the statute‘s somewhat loose use of the word “other” it is clear that the third clause is an alternative to, rather than a modifier of, the first two clauses of the definition. A health impairment that requires “special education or related services” is simply one which qualifies the person for a “special education program,” including classes for handicapped children. (See
(1) any physiological disorder, condition, or
(2) any cosmetic disfigurement, or
(3) any anatomical loss, affecting one or more of the following body systems:
(a) neurological
(b) musculoskeletal
(c) special sense organs
(d) respiratory, including speech organs
(e) cardiovascular
(f) reproductive
(g) digestive
(h) genitourinary
(i) hemic and lymphatic
(j) skin
(k) endocrine.
The sole exceptions recognized by the commission are conditions that are mental rather than physical in origin, or voluntarily induced, or temporary.
The quoted federal regulation implements the general statutory bar against discrimination on the basis of handicap in programs or activities receiving federal financial assistance. (
