*1 Bryan Vergin, Joan A. Arnold Merkle and German, Plaintiffs-Respondents,
v. Department Division of Transportation, Wisconsin Thompson Patrol, State Wisconsin, State of Charles Singletary, Defendants-Appellants- and William L.
Petitioners.
Supreme Court
3, 1999.
argument
No. 98-0250. Oral
November
—Decided
June
Amicus Curiae brief was filed Bruce Meredith Marilyn Windschiegl, Madison, on behalf of Wis- consin Education Association Council.
¶ 1. WILLIAM A. BABLITCH, Petitioner, J. (DOT)1 Department Transportation the Wisconsin published seeks review of decision of the court of appeals, DOT, German v. 2dWis. 589 N.W.2d *4 (Ct. 1998). App. appeals 651 The court of affirmed an State, The defendants in this case are the the Wisconsin Department Transportation, of and two individual defendants capacity, Thompson sued in their official Charles William Singletary, collectively L. all of whom we will refer to as "DOT". denying
order the circuit of court DOT'S motion to dis- wage brought by miss a claim officers of the Wisconsin (officers). brought State Patrol The officers a claim upon 109.03(5X1995-96),2 alleging § based they on-duty during that are their lunch break and are wages pursuant therefore owed that for time to Wis. 274.02(3) 1997). (May, § Admin. Code. DWD This sec- requires employers tion of the administrative code pay employees periods for meal that are not free from work.
¶ 2. The first issue is whether the officers can 109.03(5) seeking § a claim under Wis. Stat. on-duty periods, meal or whether the officers' remedy procedures exclusive is the administrative may Wis. Stat. 103.005. If we determine the action be brought under Wis. Stat. ch. then the second issue legislature we must decide is whether the has waived sovereign immunity type in ch. 109 for this of claim. 3. We hold that Wis. Stat. 103.005 is not the grounded exclusive means to enforce a claim 274.02(3) upon Wis. Admin. Code DWD and that the right of action created Wis. Stat. allows upon regula- for claims based the hours and overtime brought tions to be in circuit court without first obtaining Department administrative review the (DWD). Development agree Workforce In addition, we with the court of has waived the state's in Accordingly, we affirm the decision of the court appeals. statutory All references are to the 1995-96 version of the Statutes,
Wisconsin unless otherwise noted. *5 History
Facts and Procedural ¶ Patrol In 1996 officers of the Wisconsin State 4. employer, against DOT, in Dane filed suit their they County Court. The officers asserted were Circuit duty during their 30-minute neither relieved from on-duty compensated breaks, for this time as lunch nor 274.02(3).3 by required As a Admin. Code DWD alleged they were entitled to result, the officers compensation these hours worked. Their suit to for pursuant compel payment filed due was Wage Payments, §§ 109.03, 109.01 and law). (wage claim Claims and Collections Law ¶ dismiss the suit. This 5. The DOT moved to by County Court, Circuit motion was denied the Dane presiding.4 P. Charles Jones Honorable by sought expedited The review DOT appeals. The court of affirmed court of appealed circuit The DOT to this order of the court. (1997-98), pursuant which to Wis. Stat. 808.10 court granted. we 274.02(3): Wis. Admin. Code DWD on-duty periods, employer pay employes all meal The shall on-duty period time. An meal
which are to be counted as work provide period employer at least 30 min- where the does not meal employe Any period is not free work. meal where utes free from premises an on- of the will also he considered to leave the duty period. meal Fair brought the officers under the Additional claims Act, 201-219 and U.S.C. Labor Standards 29 U.S.C. §§ and are not at issue dismissed the circuit court 1983 were here.
Standard of Review
¶ 7. We are asked to review denial of a motion to
*6
sufficiency
complaint,
dismiss. To determine the
of the
statutory authority
by
we must examine the
cited
plaintiffs as the basis for their claim to determine two
First,
issues.
we must determine whether
Stat.
Wis.
§
109 is a vehicle to enforce Wis. Admin. Code DWD
274.01(3),
promulgated by
authority
rule
vested
in the
under
law,
DWD
the hours and overtime
§ 103.02,
or whether this administrative.code sec-
only
tion can
be enforced
the administrative review
procedures in
Second,
Wis. Stat. ch. 103.
we must
sovereign
determine if the
has waived
Statutory interpretation
in ch. 109.
is a
question of law which we review de novo. Morris v.
County,
Juneau
543, 550,
219 Wis. 2d
Analysis ¶ 8. We first resolve whether the officers' claim is properly brought under law, claim Wis. Stat. plain language broadly
ch. 109. The of ch. 109 defines "wage" part pay- the word in relevant as "remuneration employe personal able to an examples for services" and cites as pay, pay.
salaries, vacation and overtime 109.01(3).5 § The breadth of this definition 109.01(3): Wis. Stat. § "Wage" "wages" payable employe or mean remuneration to an services, personal including salaries, commissions, holiday and pay, pay, pay pay, sup- vacation overtime severance or dismissal plemental unemployment compensation required benefits when binding bargaining agreement, under a any collective bonuses and advantages agreed upon other similar between the obligation encompasses employer's under Wis. pay employee an Admin. Code DWD 274.02 to for on- duty wages. pro- meal break This administrative code requires "personal services," vision "remuneration" for comparable examples listed in We see little difference between a claim under ch. 109 employee seeking overtime with the officers' on-duty wages. In claim for employee meal break both cases the performed
asserts that has been work wages are now due. The DOT contends that a claim under Wis. only can
Admin. Code DWD be resolved through procedures the administrative in Wis. Stat. thl"i*egislature an administra 103.005. Where enacts statute, tive scheme to enforce a the administrative presumed mechanism is exclusive unless there is an *7 legislative contrary. affirmative indication of the Bour que Hosp. Center, 589, 594, v. Wausau 145 Wis. 2d (Ct. 1988). argues App. The that N.W.2d 433 resolving DOT compensable whether meal breaks are on- duty Stat. work time is an issue that arises under Wis. brought 103, the Hours of Work Law and is to be procedures forward in the administrative review chapter through Wis. ch. 109. that Stat. —not provisions ¶ 10. The of Wis. Stat. ch. 109 and 103.02 address two sides of the same coin. promul- authority Under the of 103.02 the DWD has requiring employers gated rule to an administrative pay employees on-duty periods. Admin. for meal Wis. 109.03(5), In Code DWD right provided employees has with the wages against employer an an action court employes employe provided by or as policy. established pursuing due first administrative with without review appeals As the court of noted: DWD. acknowledge argument We the DOT's that the really seeking are officers determination work," periods whether their lunch are "hours of but part parcel wages that is of their claim for due. pay-or possibly, compensatory The amount of time- may ultimately the officers be found to have due necessarily them must await a determination of any compensation whether is due them for lunch Nonetheless, the essence of the officers' periods. they claim is that are compensation due paid. DOT has not (emphasis origi-
German,
¶ 11.
Statutes on
same
matter are
interpreted
giving
in a
them,
manner that harmonizes
McDonough
each statute full force and effect.
v.
Department
Dev.,
227 Wis. 2d
of Workforce
(1999) (quoting
279-80,
If an claim could not be brought merely under ch. 109 because it was dis- puted grounds, on hours and overtime an employer *8 an employee's merely by could defeat suit alleging that the employee "off-duty" during part was of the employee claiming wages time for which the is due. The "off-duty" allegation require interpre- would 272.12(12)(2)(b) tation of WIS. ADM. CODE DWD § 584 (which made to hours and overtime applicable is disputes by virtue of WIS. ADM. CODE DWD § 274.045). Thus an could convert the employee's wages ch. 109 claim for due to a ch. 103 due, claim to determine whether were thereby avoiding employee-initiated suit and penalties provided by ch. 109. 223 2d at 543. German, Wis. Further, notes, and as the court of presumption remedy
"the that an administrative legislative apply expres- not if there is exclusive does contrary. (citing sion to the Id. at 538 Gardner v. (Ct. Gardner, 420, 428, 2d Wis. N.W.2d 103.005(14)(a) 1993)). App. provides § Stat. Wisconsin employ- that the DWD shall administer laws related to regulation employment far as not ment and "so provided otherwise for in the statutes." We find that 103.005(14), meaning together plain § read when are author- with Wis. Stat. ch. is that by ized to seek enforcement of Wis. through Admin. Code relationship ¶ 13. The between Wis. Stat. ch. 103 legislative Stat. ch. 109 is demonstrated in Wis. history. Wisconsin Stat. 109.03 was created proposed a 380, Laws of 1975. The new law was Special Employe Committee on Protection Business Closing Legislative Council and consoli- 1973-75 existing wage payment dated claim laws closing protections, including plant with notifi- new newly imported § 109.03 most cation law. The created provisions of the of the former 103.39 *9 (1973).6 relating statutory language to court The wage adopted 380, in ch. of actions on claims Laws substantially identical to that which had 1975, was provided in ch. 103. been pro- § addition, 380, of 1975 3 In Laws investigate department to
vided that
was
specifically
§
to enforce
103.02.7
claims and
109.09(1).
language
in
This
remains Wis. Stat.
Subse-
portion
quently,
Act 86 amended that
of Wis.
1993 Wis.
allowing
Stat. ch. 109
to
action for
adding
wages
court,
in
that the action could be
circuit
brought
filing wage
claim with the
without first
department
under
As the court of
stated, we find "no indication that
scope
employee-initiated wage
intended the
claim
scope
actions to be more limited than the
of the actions
pursue
employee's
that
is authorized to
on the
DWD
German,
behalf."
¶ 15. The chs. between Wis. Stat. 103 and 109 is also evident in Wis. Admin. Code ch. penalties provision chapter 274. The of that DWD "[a]ny part in states relevant who vio- subject lates order s. DWD. . .274.03. . .shall be 103.39(1) (1973) provided Wisconsin Stat. in relevant part employe coming meaning that "each within this against any right person section shall have a of action such regular day pay the full amount of his due on each as provided any competent jurisdiction." herein court of Chapter 380, provides part: Laws of relevant (1) claims, Wage department "109.09 collection. The shall inves tigate attempt adjust equitably controversies between employers alleged wage employes depart as to claims. The 66.293, 103.02, 103.49, chapter ment shall enforce this and ss. 103.82 and 104.12."
penalties provided in ss. . . .109.11." Wis. Admin. Code § 274.07. upon plain language
¶ 16. Based ofWis. Stat. *10 legislative history 109, ch. of ch. and 109 Wis. Stat. any 103, the absence of 103, bar this claim in ch.
and the need to 109, harmonize ch. ch. 103 and Wis. 274.03(2), Admin. Code DWD we conclude that the properly brought officers have this action under ch. 109.
¶ 17. The second issue we must then consider is
legislature
sovereign
whether the
has waived
immu
nity in Wis. Stat. ch. 109. The State of Wisconsin's
sovereign immunity
§IV,
derives from Article
27 of the
Wisconsin Constitution.8 It is axiomatic that the state
express
legis
cannot be sued without the
consent ofthe
lature. Bahr v.
Bd.,
State Inv.
186
379,
Wis. 2d
(Ct. App. 1994);
Regents,
N.W.2d 152
Lister v. Board of
(1976); Chicago,
282, 291,
72 Wis. 2d
¶ 18. The state's from suit agencies Sovereign extends to the state's and arms. Id. immunity apply does not to the activities of a state- agency independent proprietary powers created with (an concern"). "independent going and functions Id. at nothing suggests 292. There is in this case that independent going exception applicable. concern The IV, Article 27 of the Wisconsin Constitution states: "The legislature shall direct law in what manner and what may brought against courts suits be the state.” 15.01(5), agency. §§ 15.46.9 is a state DOT argued that the DOT is an have neither The officers they independent going nor that do not have to concern legislature has consented to the that the demonstrate Instead, the officers that has been commenced. action expressly consented to has assert that initiating their claim in circuit court state point and Wis. Stat. to Wis. Stat. and I03.005(l4)(a).10 agree. We argue sovereign The officers the state is in Wis. Stat. ch. 109 because is waived chapter's definition of included this expressly employees to ch. 109 allows because directly pass- court, circuit without claims through ing Stat. administrative review. Wis. 109.0K2)11 109.03(5).12 §§ §15.01(5) "'Department' states: means
9 Wisconsin agency within the executive principal administrative government, not include the Wisconsin state but does branch of independent agencies under subch. III." "Department transporta-
Wisconsin Stat. 15.46 states: of § tion; transportation department creation. is created a of There secretary supervision the direction and of the of under transportation." 10 103.005(14)(a) department Wisconsin Stat. states: "The § enforce, provided so far not otherwise shall administer and as labor, statutes, relating employment, for in the the laws to child relating regulation employment and all offices other laws employment." of 109.01(2) "Except provided states: as in Wisconsin § 109.07(l)(d), any any 'employer' person engaged means in s. employing persons more activity, enterprise or business one or state, including political the state and its subdivi within charitable, tax-exempt organizations nonprofit sions and or institutions."
¶ 20. The state's is waived in Wis. Chapter expressly "employer" Stat. ch. 109. defines political to include the state and its subdivisions. Wis. § Stat. employee Wisconsin Stat. allows an against
to a cause of action an employer wages. express leg- for This is consent brought against islature to suits legislature the state. When the n excluding wishes to enact a statute expressly state from the definition of it does 111.02(7)- ("The 'employer' so. See Wis. Stat. term person engages means a who the services of an employe.. any politi- .but shall not include the state or 111.51(5)(a) ."); cal (" subdivision thereof. . . Wis. Stat. Utility Employer' any employer, 'Public means other any political than the state or subdivision thereof . . . ."). Sovereign immunity is waived in ch. 109. On this point ambiguity. there is no argues
¶ 21. However, DOT that Wis. Stat. ch. simply compel employers 109 is a mechanism to paychecks promptly issue and is not a means to enforce This section of the statutes was amended 1997 Wis. Act 237, 354n. The impact analysis amendment does not our this case. 109.03(5): Wis. Stat. § Except (1), provided employer may Enforcement. as in sub. no
by special employes by any contract with or other means secure exemption employe right from this section. Each shall have a against any employer action employe's for the full amount of the wages regular pay day provided due on each as in this section 109.11(2), provided any increased as in s. court competent jurisdiction. employe may bring against An an action *12 employer filing wage under this subsection without first claim 109.09(1). department with employe brings the under s. An who an against action under this subsection shall have a lien upon property employer, personal, all the of real or in located this state as in s. described sought any as a are in back other claim which immunity sovereign Any remedy. in ch. of waiver purpose compelling argued, the of for the sole it is is paycheck. claims that there The DOT of a issuance immunity sovereign express in waiver of clear and no brought type the in officers of claim ch. 109 for disagree. We this case. argument presented in
¶
a similar
The state
22.
Family
Department
Services,
Health and
v.
Butzlaff
1998).
(Ct. App.
In
673,
suit judicial procedure related and its administrative in the as well as Butzlaff, The state asserted review. any ambiguity in the hand, if there is case at concerning the claim can be whether or not statute sovereign brought, at is not waived. Id. then 681-82. correctly noted in But- The court of argument that the state's
zlaff
against
suit
statutory
consent to
confuses
statutory conditions
agencies with the
state and its
all
The former must be
apply
parties.
for suit that
sovereign
constitute a waiver
clearly expressed to
according to
immunity.
interpreted
The latter are
ordinary
statutory
rules of
construction.
*13
Id. at 682. In this case it is evident that the
against
in Wis. Stat. ch. 109 consented to suit
the state
claims.
Although
¶ 24.
we reach the same conclusion as
appeals,
disagree
point
the court of
we
with one
in its
analysis.
finding
sovereign
method of
In
type
brought by
had
waived for
been
of claim
appeals
part upon
officers, the court of
relied in
Bahr.
German,
against our conclusions in this case. We find none of persuasive. them argues
¶ 26. First, the DOT that Wis. Stat. ch. penal strictly 109 is a statute and must be construed to exclude the officers' claim. Wisconsin Stat.
subjects
ability
pay wages
with the
due,
intentionally
but who
fails to do so with the intent to
annoy,
obtain a reduction in the debt or with intent to
oppress,
employee,
harass,
hinder or defraud the
to a
jail,
days
fine of not
$550,
more than
or both.
opinions
long recognized
¶ 27. Our
that,
have
penal
rule of strict construction of
statutes is not a
"
general
application;.
. . . Some
'rule of
or universal
a liberal construction is
times a strict and sometimes
required,
penal
respect
law,
even in
to a
because the
carry
dominating purpose
is to
of all construction
out
legislative purpose.'"
Kittilstad,
v.
State
*14
(1999) (quoting
245, 262, 603
732
State v.
2d
N.W.2d
(1914)).
Boliski,
78, 81,
Wis.
Dep't
475, 478
Corrections, 972
of
1996),
seemingly
arguing
our
that it
conflicts with
con-
Although Arndt, the
in
federal district court
clusions.
inquiry
103,
Wis.
chs. 109 and
its
is
examined
distinguishable
First,
at
from the case
hand.
Arndt
109
the court concluded that ch.
contained no waiver of
sovereign immunity.
respectfully disagree
We
with
Second, this conclusion.13
district court character-
statutory
109
as two distinct
ized chs.
and 103
v.
The concurrence labels our discussion ofArndt Wiscon
1996)
(W.D.
Corrections,
Supp.
Dep't
sin
972 F.
Wis.
as a
of
"ill
"criticism" of
district court and
advised." Neither asser
is correct. The
court was asked to and did
tion
district
specifically
address whether
Stat. ch. 109 contains a
immunity:
of the state's
waiver
chapter
private
Plaintiffs look to
cause of action allowed under
statutory
[to
waiver]....
find
A waiver
of the state's
only
by the
found
where stated
the most
will be
However,
schemes.
as the court of
noted, and
already
as we have
stated, chs. 109 and 103 are not
nearly so distinct. German,
¶ 29. The DOT also cites state that, cases14 it contends, characterize Wis. Stat. ch. 109 as a law nar- rowly assuring prompt payment focused on of wages actually jurisdic- due rather than as a broad grant. analysis tional Our of ch. 109 with Wis. Stat. ch. gives 103 and Wis. Admin. Code DWD 274 full effect wage payment purpose of the statutes. We con- keeping clude it purpose with the well-established prompt payment wages. to assure As the judge circuit court noted, allows employee bring private cause of action for "the *15 wages full amount" of due. We believe that this statute contemplates presented by a situation such as that the officers in case, this where the issue is not that the express language overwhelming implication or such from the any
text as to leave no room for
other reasonable construction.
Id. at 479. The district court found
sovereign
no waiver of
immu-
nity in
differing
ch. 109. Our
conclusion here is not a criticism of
court;
simply,
district
we
respectfully,
disagree.
but
MEDC,
v.
243, 250-51,
216 Wis. 2d
576 N.W.2d
14 Pfister
(Ct. App. 1998);
Cos., Inc.,
Jacobson v. American Tool
554
222
(Ct.
384, 400,
Erdman v.
Wis. 2d
1998);
588
App.
N.W.2d 67
Jovoco, Inc.,
736,
n.6,
181 Wis. 2d
(1994);
749
593 paycheck, never a but that have received wages they of due to seek the full amount to obtain them. addition, DOT In contends that
affirming
ability
to
their action
the officers'
under Wis. Stat. ch. 109 will raise federal constitu
According
DOT,
concerns.
state statutes
tional
past
109
in the
such as
have been found constitutional
they
narrowly
support
In
focused.
of this
because
were
proposition
St.
Iron
& Saint
DOT cites
Louis
Mountain
(1899);
Railway
404,
Paul,
v.
U.S.
Paul
Co.
173
406 - 10
Williams,
685,
R.R.
v.
233 U.S.
692-705
Erie
Co.
(1914);
(1928),
McBride,
350,
Ribnik v.
277 U.S.
375
part by
v. State
ex rel.
overruled in
Olsen
Nebraska
of
(1941);
Ass'n,
&
Western
Bond
U.S.
Reference
Hosp.
Columbia,
and Adkins v. Children's
District
(1923),
part by
261 U.S.
West
overruled
(1937).
Hotel
U.S. 379
We are
Parrish,
Coast
Co. v.
persuaded. "Simply to
a
as con
not
label
claimed error
so,
make
and we
decide
stitutional does not
it
need not
validity
broadly
claims
of constitutional
stated but
specifically argued."
Scherreiks,
never
State v.
153 Wis.
(Ct.
1989) (citations
App.
510, 520,
2d
omitted).
¶ 32.
court
We concur with the
that
point
this
are
DOT's concerns on
"unwarranted and
German,
overstated."
considering sovereign immunity, the issue of dismissal is warranted because the officers have failed to state a upon granted. claim which relief can be The DOT did petition review, not raise this issue its and we decline it to consider here.15 review, granting par In this court's order we asked the questions. question
ties to brief two additional The first was plaintiffs required whether were to serve a notice of claim pursuant to Wis. Stat. The second issue was impacts whether the fact that no notice of claim was filed resolu parties agree tion of the case on the merits. Because the inapplicable and the 893.82 is to the State of Wisconsin Department Transportation we need not address these issues further. *17 on-duty
¶ has classified sum, In the DWD 34. compensable periods 103.02; time. Wis. Stat. as meal Under Wis. Code DWD Wis. Admin. claims for can state pursuant to this classification. due
By of the court of decision the Court.—The is affirmed.
¶ ABRAHAMSON, CHIEF 35. SHIRLEY S. join (concurring). ¶ I 28 of the do not JUSTICE majority opinion. majority opinion's criticism of The F.Supp. Dep't Corrections, 972 Arndt v. Wisconsin (W.D.Wis. 1996), my opinion, ill advised. is, in large part the U.S. Constitution and Arndt turns in on present concerns, not in the case at federalism issues bar. join ¶
¶ stated, I in 28 For the reasons do not 36. opinion. of the I authorized to state that Justice am joins SYKES this concurrence.
DIANE S.
