Lead Opinion
Opinion
In making an award of backpay under Labor Code section 132a
Factual and Procedural Background
Petitioner Lome Currie, a bus driver employed by respondent Los Angeles County Metropolitan Transportation Authority (LACMTA), suffered industrial injuries in 1990 and 1991. He was on medical leave from September 25, 1991, to September 25, 1992, on which date his employment was terminated for exceeding the leave permitted under his union contract. Although he had been medically unable to return to his regular work before his termination, his treating physician reported him cleared for regular work without any restrictions on December 10, 1992.
In a decision dated June 25, 1997, the WCAB found that petitioner’s termination did not violate section 132a, but that LACMTA’s refusal to reinstate him after December 10, 1992, did violate that statute.
On Currie’s petition for writ of review (see § 5950), the Court of Appeal agreed with the WCAB that the board could not award prejudgment interest. The appellate court denied the petition summarily, but briefly stated its reasons: “Section 132a provides for a comprehensive remedy, which does not include interest. . . . Interest is specifically governed by section 5800, and alleged equitable powers cannot override the expressed intent of the Legislature. Furthermore, the Civil Code, civil law and damages are distinguishable from workers’ compensation.”
We granted Currie’s petition for review and issued a writ of review returnable before this court.
Discussion
Section 132a, paragraph (1) states: “Any employer who discharges, or threatens to discharge, or in any manner discriminates against any employee because he or she has filed or made known his or her intention to file a claim for compensation with his or her employer or an application for adjudication, or because the employee has received a rating, award, or settlement, is guilty of a misdemeanor and the employee’s compensation shall be increased by one-half, but in no event more than ten thousand dollars ($10,000), together with costs and expenses not in excess of two hundred fifty dollars ($250). Any such employee shall also be entitled to reinstatement and reimbursement for lost wages and work benefits caused by the acts of the employer.” Section 132a is located in division 1 of the Labor Code, titled “Department of Industrial Relations.”
Section 5800 provides in pertinent part: “All awards of the appeals board either for the payment of compensation or for the payment of death benefits, shall carry interest at the same rate as judgments in civil actions on all due and unpaid payments from the date of the making and filing of said award.” Section 5800 is located in division 4 of the Labor Code, titled “Workers’ Compensation and Insurance.”
Section 3207, also located in division 4 of the Labor Code, states: “ ‘Compensation’ means compensation under Division 4 and includes every benefit or payment conferred by Division 4 upon an injured employee,
The question is whether these and/or other statutory provisions authorize or prohibit the WCAB’s award of prejudgment interest on backpay awards.
Section 5800
The WCAB and the Court of Appeal relied on section 5800’s specification of pastjudgment interest as an implied exclusion of the authority to award prejudgment interest. Their reliance was misplaced, however, because section 5800 does not apply to awards of backpay under section 132a. The “reimbursement for lost wages” provided for under section 132a is not “payment of compensation or . . . payment of death benefits” governed by section 5800.
In City of Moorpark v. Superior Court (1998)
The same reasoning dictates the conclusion that section 132a backpay is not subject to any limitation on interest implicit in section 5800. The subject matter of section 5800 is “awards of the appeals board either for the payment of compensation or for the payment of death benefits.” Obviously, an award of backpay under section 132a is not a death benefit. Nor is it “compensation” within the meaning of section 5800, because that term, according to section 3207, “means compensation under Division 4.” Section 132a’s authorization of “reimbursement for lost wages and work benefits” to a victim of discriminatory action appears in division 1 of the Labor Code and is separate and distinct from the compensation for industrial injuries provided for in division 4. Section 5800 simply does not apply here.
The dissent takes the view that the reference to division 4 of the Labor Code in section 3207’s definition of compensation “was clearly not meant to be restrictive” because section 3207 also includes as compensation a type of benefits, vocational rehabilitation, that is not authorized by division 4. (Dis. opn., post, at p. 1120.) Interpreting section 3207 according to its terms, however, we must disagree. That the Legislature expressly included vocational rehabilitation benefits within the definition of compensation does not indicate an intent to impliedly include any other type of non-division-4 payments, such as backpay ordered under section 132a. Moreover, vocational rehabilitation and backpay ordered under section 132a are not functionally comparable. The former, like division 4’s permanent and temporary disability benefits, compensates the employee for an industrial injury; the latter remedies discriminatory or retaliatory termination. “ ‘Compensation’ of an employee in the form of wages or salary for services performed, does not have the same meaning as the word ‘compensation’ in the Workmen’s Compensation Act. The former is remuneration for work done; the latter is indemnification for injury sustained.” (Hawthorn v. City of Beverly Hills (1952)
Petitioner and an amicus curiae, the California Applicants’ Attorneys Association, rely on Civil Code section 3287, subdivision (a) as authority for the award of prejudgment interest. That statute provides, in pertinent part: “Every person who is entitled to recover damages certain, or capable of being made certain by calculation, and the right to recover which is vested in him upon a particular day, is entitled also to recover interest thereon from that day . . . .” For reasons given below, we agree that Civil Code section 3287, subdivision (a) applies to backpay awards made under Labor Code section 132a.
“Amounts recoverable as wrongfully withheld payments of salary or pensions are damages within the meaning of [Civil Code section 3287, subdivision (a)]. [Citations.] Interest is recoverable on each salary or pension payment from the date it fell due. [Citation.]” (Olson v. Cory (1983)
Civil Code section 3287 has frequently been applied to administrative agencies’ retroactive awards of government assistance, wages, or retirement benefits, whether the awards were made initially by the agency or ordered by writ of mandate by a court. (See, e.g., Tripp v. Swoap (1976)
WCAB awards of prejudgment interest under Civil Code section 3287 are consistent with both the letter and the spirit of Labor Code section 132a. Nothing in section 132a expressly or impliedly precludes such an award. Indeed, the statute’s authorization of “reimbursement for lost wages” could reasonably be understood as impliedly authorizing accompanying interest, since without such interest the employee will not be fully reimbursed for the value of the lost wages. {Mass v. Board of Education, supra,
As to spirit, we observe that Labor Code section 132a itself declares it is the “policy of this state that there should not be discrimination against workers who are injured in the course and scope of their employment.” Adhering to that statement of legislative policy, we have construed the statute as serving, in part, “a remedial function, by providing some compensation to the aggrieved worker for discrimination incurred as the result of his injury.” (Judson Steel Corp. v. Workers’ Comp. Appeals Bd. (1978) 22 Cal.3d
Because the WCAB is expressly authorized to award “reimbursement for lost wages” under Labor Code section 132a, and because the inclusion of prejudgment interest in such a backpay award is mandated by Civil Code section 3287, inclusion of interest in the backpay award does not violate the principle that an administrative agency cannot create a remedy the Legislature has withheld. (See Dyna-Med, Inc. v. Fair Employment & Housing Com. (1987)
Finally, respondent LACMTA contends this court’s decision in American Federation of Labor v. Unemployment Ins. Appeals Bd. (1996)
In holding interest was not authorized either under the unemployment insurance laws or under Civil Code section 3287, the AFL majority emphasized that certain delays were inherent in the administrative process, but concluded these delays “are not. . . tantamount to a ‘wrongful withholding’ of benefits giving rise to a right to section 3287(a) prejudgment interest once the Board rules in favor of the claimant.” (AFL, supra,
Here we are concerned not with an inherent administrative delay in providing government benefits, but with wages withheld from an employee in violation of Labor Code section 132a. The WCAB determined this legal violation began in December 1992, when petitioner should have been, but was not, reinstated to his previous position. The wages wrongfully withheld from that point on, until reinstatement and backpay were ordered in June 1997, came due on the dates they would have been paid had petitioner been reinstated. (Mass v. Board of Education, supra,
In summary, although Labor Code section 132a does not itself expressly authorize the addition of prejudgment interest to an award of backpay to a victim of discrimination, Civil Code section 3287 requires such interest on damages due on a particular date, including awards of backpay, when they are certain or capable of being made certain by calculation. Neither section 5800 nor any other provision of the Labor Code cited to us or discovered in our research precludes addition of interest to a backpay award, and addition of interest would serve the remedial purpose of section 132a. Harmonizing the provisions of the Labor and Civil Codes to further the overall legislative goals, therefore, we conclude the WCAB may and must, when the criteria of Civil Code section 3287 are met, add to its awards reimbursing employees for lost wages and work benefits interest from the dates such wages and benefits would have become due had the employer not acted in violation of section 132a. Because the WCAB denied petitioner interest in the belief such an award was unauthorized, it must reconsider its award in this case.
Disposition
The matter is remanded to the WCAB for further proceedings consistent with our opinion. (See § 5953.)
George, C. J., Mosk, J., Kennard, J., Baxter, J., and Chin, J., concurred.
Notes
Unless otherwise specified, all further statutory references are to the Labor Code.
The WCAB, citing a dictum regarding reinstatement rights in Jordan v. Workers’ Comp. Appeals Bd. (1985)
As these cases indicate, and contrary to the dissent’s apparent assumption (see dis. opn., post, at p. 1120), the terms “benefits” and “damages” are not mutually exclusive. Welfare and retirement payments, for example, can be referred to as benefits or, when awarded in relief of a legal claim, as damages. “Damages,” for purposes of Civil Code section 3287, are simply the monetary relief a person is entitled to recover in “compensation” for “detriment from the unlawful act or omission of another.” (Civ. Code, § 3281.)
In its answer brief in the Court of Appeal and its answer to the petition for review, LACMTA argued, in the alternative, that even if prejudgment interest could be included in Labor Code section 132a awards, it would not properly be awarded in this case under Civil Code section 3287 because factual disputes concerning the date upon which Currie was entitled to reinstatement made vesting of the damages too uncertain. That issue was not discussed by the Court of Appeal, nor has LACMTA raised the issue in its sole brief on the merits filed herein, an answer brief to an amicus curiae brief. We decline to address the issue in the first instance, but our decision does not preclude the WCAB from doing so on remand.
Dissenting Opinion
I respectfully dissent.
“An agency interpretation of the meaning and legal effect of a statute is entitled to consideration and respect by the courts . . . .” (Yamaha Corp. of America v. State Bd. of Equalization (1998)
Moreover, the WCAB’s interpretation of section 132a is confirmed by several Court of Appeal decisions that describe section 132a as creating a right to a “ ‘class of benefits.’ ” (E.g., Burton v. Workers’ Comp. Appeals Bd. (1980)
In addition, section 5800 implicitly precludes prejudgment interest on WCAB awards by explicitly authorizing postjudgment interest only. Section 5800 provides in pertinent part: “All awards of the appeals board either for the payment of compensation or for the payment of death benefits, shall carry interest at the same rate as judgments in civil actions on all due and unpaid payments from the date of the making and filing of said award.” The majority stresses that section 5800 applies only to awards “ ‘for the payment of compensation or . . . death benefits,’ ” and argues that section 3207 defines “compensation” as “ ‘compensation under Division 4’ whereas, section 132a falls in division 1 of the Labor Code. (Maj. opn., ante, at p. 1113.) But section 3207 expressly states that “compensation under Division 4” includes “vocational rehabilitation,” which, like backpay under section 132a, is a benefit conferred by division 1 of the Labor Code. (See § 139.5.) Therefore, section 3207’s reference to division 4 was clearly not meant to be restrictive.
As this case involves an administrative agency’s award of benefits, not civil damages, I see no basis for applying Civil Code section 3287, subdivision (a), or for distinguishing our decision in American Federation of Labor v. Unemployment Ins. Appeals Bd., supra,
Further statutory references are to the Labor Code unless otherwise indicated.
