Gerard v. Orange Coast Mem. Medical CenterGerard v. Orange Coast Mem. Medical Center
Case Information
*1 IN THE SUPREME COURT OF
CALIFORNIA JAZMINA GERARD et al., Plaintiffs and Appellants, v.
ORANGE COAST MEMORIAL MEDICAL CENTER, Defendant and Respondent.
S241655
Fourth Appellate District, Division Three
G048039
Orange County Superior Court 30-2008-00096591 December 10, 2018
Justice Liu authored the opinion of the court, in which Chief Justice Cantil-Sakauye and Justices Chin, Corrigan, Cuéllar, Kruger, and Siggins [*] concurred.
*2 GERARD v. ORANGE COAST MEMORIAL MEDICAL CENTER
S241655
Opinion of the Court by Liu, J.
The Labor Code generally provides that employees who
work more than five hours must be provided with a 30-minute
meal period and that employees who work more than 10 hours
must be provided with an additional 30-minute meal period.
(
I.
Plaintiffs Jazmina Gerard, Kristiane McElroy, and Jeffrey
Carl are health care workers who were formerly employed by
defendant Orange Coast Memorial Medical Center (Hospital).
According to their complaint, plaintiffs usually worked 12-hour
shifts and sometimes worked shifts longer than 12 hours. A
Hospital policy allowed health care employees who worked
shifts longer than 10 hours caring for patients to voluntarily
waive one of their two meal periods, even if their shifts lasted
more than 12 hours. Plaintiffs alleged they signed second meal
period waivers and occasionally worked shifts longer than 12
hours without being provided a second meal period. Plaintiffs
contended that these second meal period waivers violated the
Labor Code, and they sought penalties, unpaid wages, and
injunctive relief for those and other violations. Gerard alleged
claims on her own behalf and on behalf of others in the form of
a private attorney general action. (
The Hospital asserted as an affirmative defense that the meal period waivers had conformed to the applicable IWC wage order. The Hospital moved for summary judgment against Gerard on all of her individual and PAGA claims, asserting that there was no disputed issue of material fact as to the cause of action for meal period violations because the plaintiffs were provided meal periods as required by law. The trial court granted the Hospital’s motion for summary judgment and its subsequent motion to deny class certification. Plaintiffs appealed.
As explained in greater detail below, the Court of Appeal initially reversed the trial court, holding that although the meal period waivers were obtained in conformity with the applicable wage order, that wage order violated a provision of the Labor Code generally prohibiting second meal period waivers for employees working shifts longer than 12 hours. We granted the Hospital ’ s petition for review and transferred the case to the Court of Appeal with directions to consider recently enacted legislation that was potentially pertinent to the case. The Court of Appeal subsequently reversed course and affirmed the trial court ’ s rulings in favor of the Hospital. We then granted plaintiffs’ petition for review.
II
Wage and hour claims, including claims regarding the
availability and timing of meal breaks, are governed by two
complementary and occasionally overlapping sources of
authority: the provisions of the Labor Code, enacted by the
Legislature, and a series of 18 wage orders, adopted by the
IWC. (
Brinker Restaurant Corp. v. Superior Court
(2012) 53
Cal.4th 1004, 1026 (
Brinker
).) To the extent a wage order and
a statute overlap, we will seek to harmonize them, as we would
with any two statutes. (
Id.
at p. 1027.) But because the
Legislature is the source of the IWC s authority, a provision of
the Labor Code will prevail over a wage order if there is a
conflict. (See
id.
at p. 1026;
California Hotel & Motel Assn. v.
Industrial Welfare Com.
(1979)
In June 1993, at the urging of the health care industry, the IWC amended Wage Order 5 1989 to add subdivision 11(C), which permitted health care employees who worked shifts longer than eight hours to waive a second meal period. (Official *5 Notice, Amends. to §§ 2, 3, & 11 of IWC Order No. 5 89 (June 30, 1993).) As the IWC ’ s Statement as to the Basis of Amendments explained: The petitioner requested the IWC to allow employees in the health care industry who work shifts in excess of eight (8) total hours in a workday to waive their right to ‘ any ’ meal period . . . as long as certain protective conditions were met. The vast majority of employees testifying at public hearings supported the IWC ’ s proposal with respect to such a waiver, but only insofar as waiving ‘ a ’ meal period or ‘ one ’ meal period, not ‘ any ’ meal period. Since the waiver of one meal period allows employees freedom of choice combined with the protection of at least one meal period on a long shift, on June 29, 1993, the IWC adopted language which permits employees to waive a second meal period provided the waiver is documented in a written agreement voluntarily signed by both the employee and the employer, and the waiver is revocable by the employee at any time by providing the employer at least one day s notice. ( Ibid. )
In 1999, the Legislature enacted Assembly Bill No. 60 (AB
60), known as the Eight-Hour-Day Restoration and Workplace
Flexibility Act of 1999. This bill was passed in response to IWC
wage orders that had eliminated overtime for employees
working more than eight hours per day. The legislation
repealed five wage orders, including Wage Order No. 5 covering
the health care industry, and required the IWC to review its
wage orders and readopt orders restoring daily overtime. (See
Brinker
,
supra
, 53 Cal.4th at p. 1045.) The Legislature
amended Labor Code section 510 to explicitly provide that [a]ny
work in excess of eight hours in one workday . . . shall be
compensated at the rate of no less than one and one-half times
the regular rate of pay for an employee. (Stats. 1999, ch. 134,
*6
§ 4; compare stats. 1982, ch. 185, § 1 [earlier version of
section 510 without that provision].) Section 511 was added to
allow employers and employees to agree on an alternative
workweek that permitted employees to work up to 10 hours per
day within a 40-hour week without the obligation to pay
overtime. AB 60 also added
Further, AB 60 added section 516, which stated: Notwithstanding any other provision of law , the [IWC] may adopt or amend working condition orders with respect to break periods, meal periods , and days of rest for any workers in California consistent with the health and welfare of those workers. (Stats. 1999, ch. 134, § 10, italics added.) And AB 60 added section 517, which states in pertinent part in subdivision (a): The Industrial Welfare Commission shall, at a public hearing to be concluded by July 1, 2000, adopt wage, hours, and working conditions orders consistent with this chapter without convening wage boards, which orders shall be final and conclusive for all purposes.
Consistent with that mandate, the IWC adopted a new version of Wage Order No. 5 on June 30, 2000, and it became effective on October 1, 2000. Section 11(D) of Wage Order No. 5 essentially readopted former section 11(C) discussed above: *7 “ Notwithstanding any other provision of this order, employees in the health care industry who work shifts in excess of eight (8) total hours in a workday may voluntarily waive their right to one of their two meal periods. ”
After section 11(D) was adopted, but before it became
effective, the Legislature enacted Senate Bill No. 88 (SB 88),
which among other things expanded the class of employees
exempt from overtime to include certain computer software and
nursing professionals. (See §§ 515, subd. (f), 515.5; Stats. 2000,
ch. 492, §§ 2 3.) SB 88 also amended section 516 to say:
Except
as provided in
The present litigation challenged the validity of section
11(D), and the Court of Appeal invalidated the provision in
Gerard v. Orange Coast Memorial Medical Center
(2015) 234
Cal.App.4th 285, review granted May 20, 2015, S225205
(
Gerard I
). As the Court of Appeal here explained: In
Gerard
I
we held . . . section 11(D) invalid to the extent it sanctions
second meal period waivers for health care employees who work
shifts of more than 12 hours, because it conflicts with
After
Gerard I
, the Legislature further amended section
516 with Senate Bill No. 327 (SB 327). The previous language
requiring the IWC to conform to
SB 327 also stated as legislative findings: The
Legislature finds and declares the following: [¶] (a) From 1993
through 2000, [IWC] Wage Orders 4 and 5 contained special
meal period waiver rules for employees in the health care
industry. Employees were allowed to waive voluntarily one of
the two meal periods on shifts exceeding 12 hours. On June 30,
2000, the [IWC] adopted regulations allowing those rules to
continue in place. Since that time, employees in the health care
industry and their employers have relied on those rules to allow
employees to waive voluntarily one of their two meal periods on
shifts exceeding 12 hours. [¶] (b) Given the uncertainty caused
by a recent appellate court decision,
Gerard v. Orange Coast
Memorial Medical Center
(2015)
SB 327 also contained an urgency provision: This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: [¶] In order to confirm and *9 clarify the law applicable to meal period waivers for employees in the health care industry throughout the state, it is necessary that this act take effect immediately. ” (Stats. 2015, ch. 506, § 3.)
SB 327 was supported not only by hospitals and healthcare organizations but also by health care employee unions. The United Nurses Association of California/Union of Health Care Professionals (UNAC) stated: “ Under this wage order provision, UNAC members have for years enjoyed the flexibility of alternate work schedules, which allows for greater staffing flexibility and better patient care. Patient outcomes are dramatically improved in environments where the nurses and other health care professionals can place priority on the needs of their patients without interruption by an arbitrary meal period when the shift runs long. (RNs are generally able to eat during work time in break rooms.) (Assem. Com. on Labor & Employment, Bill Analysis of Sen. Bill No. 327 (2015 2016 Reg.Sess.) Sept. 8, 2015, p. 8.) UNAC commented that [ Gerard I ] will result in a severe disruption of the lives of our members, many of whom have built a schedule of work, child care, and other obligations around the ability to waive a second meal period. ( Ibid. )
At the same time as the Legislature was acting, the Hospital petitioned this court to review Gerard I , supported by amici letters from UNAC and Service Employees International Union Local 121RN. We granted the petition and transferred the cause to the Court of Appeal with directions to vacate the decision and to reconsider the cause in light of the enactment of SB 327.
On remand, the Court of Appeal concluded it had erred in
Gerard I
: The lynchpin of our analysis was the conclusion that
*10
. . . section 11(D) conflicts with
took away the IWC ’ s authority to
adopt
wage orders inconsistent
with the second meal period requirements of
To summarize this chronology: The IWC in 1993 amended
Wage Order 5 with section 11(C), allowing health care
employees who work more than eight hours in a shift to waive a
second meal period. In 1999, AB 60 provided in Labor Code
III.
Plaintiffs do not dispute the distinction between the
adoption of a wage order and its effective date, or that the
amended version of section 516 does not apply to wage orders
that had already been adopted. Indeed, the text of amended
section 516 qualifies the IWC s authority to adopt wage orders
*12
going forward, but it contains no terms invalidating wage orders
already adopted: “ Except as provided in
Plaintiffs’ argument is based principally on section 517 ’s
language that IWC wage orders adopted by July 1, 2000, must
be “ consistent with this chapter, ” that is, consistent with the
provisions of AB 60. (Stats. 1999, ch. 134, § 11.) “ ‘ [C]onsistent
with this chapter, ’ ” plaintiffs contend, “ included a requirement
that the IWC wage order be consistent with
This reading of the statutory language is unpersuasive. It
ignores the broad sweep of the phrase notwithstanding any
other provision of law. (
Arias v. Superior Court
(2009) 46
Cal.4th 969, 983, italics omitted [describing “notwithstanding
any other provision of law” as a “ ‘ term of art ” ’ [citation] that
*13
declares the legislative intent to override all contrary law” ].) We
need not define the outermost parameters of the phrase in order
to conclude that there is no reason to read it in former section
516 to exclude from its scope the law regarding meal periods
found in
The more natural way to reconcile the phrases “notwithstanding any other provision of law” of former section 516 and “consistent with this chapter” in section 517 is to give them their literal meaning. The main purpose of AB 60, the Eight Hour Day Restoration Workplace Flexibility Act of 1999, was to restore overtime for a nonexempt employee working more than eight hours a day. “[C]onsistent with this chapter” means that IWC orders going forward can no longer disregard daily overtime. But even as AB 60 limited the discretion of the IWC in that and other respects, it explicitly retained in former section 516 the IWC’s rulemaking prerogative, “notwithstanding any other provision of law,” with respect to “break periods, meal periods and days of rest,” limited only by a requirement that any rules be “consistent with the health and welfare” of affected workers. (Stats. 1999, ch. 134, § 10.)
Read literally, the “notwithstanding” phrase undoubtedly
gives broad powers to the IWC. That literal reading makes
sense in this context. The Legislature’s broad delegation to the
IWC is consistent with its recognition that the IWC is
*14
constitutionally authorized (
Plaintiffs cite
Brinker
and a Court of Appeal case for the
proposition that the IWC may not exercise its authority under
section 516 in ways that contravene
Plaintiffs also cite the legislative history of SB 88. The
Senate Third Reading analysis of SB 88 states: This bill
clarifies two provisions of the Labor Code enacted in Chapter
134. Labor Code
Whether an amendment represents a change in the law or
merely a declaration of existing law is a question of interpreting
existing law, a task that ultimately belongs to the judiciary.
(
McClung v. Employment Dev. Dept.
(2004)
Moreover, although SB 88 was an urgency statute, there is no indication that the reason for the urgency was to prevent section 11(D) from going into effect. The restriction on the IWC s authority with respect to meal period waivers was only one part of SB 88; the bill also addressed, among other things, the exemption of certain computer software professionals and a certain class of certified nurse midwives, nurse anesthetists, and nurse practitioners from overtime pay. (Stats. 2000, ch. 492, §§ 2 3.) The stated reason for the urgency legislation was to enact these exemptions: In order, at the earliest possible time, to protect businesses that rely on the computer industry as well as certain vital health care professions, it is necessary for this act to take effect immediately. ( Id. , § 5.)
Plaintiffs also invoke the principle that wage orders and
statutes should be harmonized where possible. (See
Brinker
,
supra
,
The parties argue at length about the significance of SB 327. Plaintiffs point to SB 327 ’s declaration that SB 88 ’s amendment of former section 516 did not intend to countermand the IWC s already adopted wage order. This legislative declaration is not binding on the courts. (See McClung , supra , 34 Cal.4th at pp. 472 473.) Nevertheless, for reasons discussed above, we independently conclude that SB 88 did not undo section 11(D) of Wage Order No. 5 permitting health care workers who work more than eight hours to waive a second meal period. The Legislature, when it enacted SB 88, did not second- guess the IWC ’s determ ination that allowing health care employees to waive a second meal period is consistent with promoting their health and welfare.
Since 2000, the Legislature has amended
C ONCLUSION
We affirm the judgment of the Court of Appeal.
LIU, J.
We Concur:
CANTIL-SAKAUYE, C. J.
CHIN, J.
CORRIGAN, J.
CUÉLLAR, J.
KRUGER, J.
SIGGINS, J. [*]
*18 See next page for addresses and telephone numbers for counsel who argued in Supreme Court. Name of Opinion People v. Franco
__________________________________________________________________________________ Unpublished Opinion
Original Appeal
Original Proceeding
Review Granted
XXX
Rehearing Granted
__________________________________________________________________________________ Opinion No. S233973
Date Filed: December 10, 2018
__________________________________________________________________________________ Court: Superior
County: Los Angeles
Judge: Roger T. Ito
__________________________________________________________________________________ Counsel:
Allison H. Ting, under appointment by the Supreme Court, for Defendant and Appellant.
Kamala D. Harris and Xavier Becerra, Attorneys General, Gerald A. Engler, Chief Assistant Attorney General, Lance E. Winters, Assistant Attorney General, Mary Sanchez, Louis W. Karlin and Theresa A. Patterson, Deputy Attorneys General, for Plaintiff and Respondent.
Counsel who argued in Supreme Court (not intended for publication with opinion): Allison H. Ting
Law Office of Allison H. Ting
1158 26th Street, #609
Santa Monica, CA 90403
(310) 826-4592
Theresa A. Patterson
Deputy Attorney General
300 South Spring Street, Suite 1702
Los Angeles, CA 9013
(213) 620-6004
Notes
[*] Presiding Justice of the Court of Appeal, First Appellate District, Division Three assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.
[*] Presiding Justice of the Court of Appeal, First Appellate District, Division Three assigned by the Chief Justice pursuant to article VI, section 6 of the California Constitution.