In a proceeding in the superior court brought under section 1094.5, Code of Civil Procedure, to review a decision of the Unemployment Insurance Appeals Board affirming a decision of a referee for the Department of Employment denying benefits to plaintiffs, the court discharged an alternative writ of mandate and entered judgment in favor of defendants. Plaintiffs appeal.
Questions Presented
1. Are seamen who, under their collective bargaining agreement, have an option to take pay in lieu of vacation, entitled *104 also to unemployment compensation disability benefits 1 under the Unemployment Relief and Insurance Act (Deering’s Gen. Laws, Act 8780d) 2 §11 (a) (1), and title 22, California Administration Code, section 261 (i) ?
2. Are seamen who receive “maintenance and cure” 3 provided for in said agreement entitled to such benefits?
Records
Plaintiffs are seamen employed under collective bargaining agreements between Pacific Maritime Association 4 and National Union of Marine Cooks and Stewards, and whose employment was terminated by reason of illness or accident resulting in disability. Each plaintiff applied to the department for unemployment compensation disability benefits and his application was refused by the examiner because of receipt of either pay in lieu of vacation or maintenance and cure, and in Ledda’s case, receipt of both. Plaintiffs appealed to the Division of Appeals, Department of Employment. A hearing before the referee resulted in a decision adverse to plaintiffs. On appeal to the Appeals Board from the referee’s decision, said decision was affirmed with modification. Plaintiffs then obtained an alternative writ of mandate from the superior court. The cause was submitted on the certified administrative record and briefs. Judgment was entered affirming the decision of the Appeals Board. The effect of the decision is to hold that seamen, who become disabled and who receive maintenance and cure, or who, having the option of taking pay in lieu of vacation, receive pay in lieu of vacation, are disqualified from receiving disability benefits pro tanto. The act provides benefits to be paid to a disabled individual for “each full day during which he is unemployed.” (§205.) The bargaining agreement provides for vacation with pay to stewards having six months or more continuous service in accordance with a detailed plan. Section 208 provides: “No individual shall be paid unemployment *105 compensation disability benefits with respect to any week if he continues to receive his regular wages, or any part thereof; . . .” (Emphasis added.) The court found that vacation pay constitutes “wages” under section 11 (a) (1) of the act, which provides: “. . . the term ‘wages’ means: (1) All remuneration payable for personal services, whether by private agreement or consent or by force of statute, including commissions and bonuses, and the cash value of all remuneration payable in any medium other than cash”; also under section 261 (i), title 22, California Administrative Code, which provides: “ (i) ‘Eeg-ular Wages’ as that term is used in Section 208 of the act means compensation paid entirely by an employer directly to his employee as a full or partial payment of his remuneration during a period of disability.”
Is in Lieu Vacation Pat “Regular Wages”?
It should be pointed out that there is a decided conflict in the findings of both the board and the court in this: both found that plaintiffs’ vacation pay was not “regular wages” and yet that plaintiffs were receiving wages as defined in section 11 (a) (1) and section 261 (i), Administrative Code. The latter section by its terms refers to section 208 only, and defines the “regular wages” mentioned in that section. It has no relation to “wages” or section 11 (a) (1). Thus the findings, in effect, find that plaintiffs’ vacation pay was not “regular wages” and yet were “wages” as defined in section 261 (i), Administrative Code, which only defines “regular wages.” We can disregard this conflict, as even though plaintiffs were receiving “wages” as defined in section 11 (a) (1), they still would be entitled to disability benefits unless they were receiving the “regular wages” mentioned in section 208 defined by section 261 (i). Section 151(a) provides that should there be a conflict between the provisions regarding unemployment compensation (art. 1 to 9, inclusive, of the act) and those regarding unemployment compensation disability benefits (art. 10), the latter provisions shall prevail with respect to such benefits. So the question we are to decide is, “Is vacation pay ‘regular wages’?”
Plaintiffs contend that “regular wages” in section 208 has a definite meaning, namely, the wages the disabled workman was regularly receiving during his employment up to the time of disability, and that, having such meaning, the power given the Department of Employment by section 90 of the act, to promulgate regulations, of which section 261 (i), *106 Administrative Code, is a part, does not include the power to define “regular wages” so as to extend its definite meaning, and therefore “regular wages” can mean nothing except the claimed definite meaning. We agree with plaintiffs that the department would have no power to enact a regulation or give a definition contrary to the terms of the act, but we do not agree that the term “regular wages” as used in section 208 has such a definite and understood meaning that it does not need defining. It is an ambiguous term and requires defining. We find no conflict between section 208 of the act and section 261 (i), Administrative Code.
In determining whether the vacation pay here is “regular wages” as used in section 208, as defined by section 261 (i), Administrative Code, there are two matters to be considered: (1) Is vacation pay “remuneration” and (2) is it such “during a period of disability.” (1) In unemployment compensation cases vacation pay
5
is generally considered earned compensation or wages and not a gratuity.
(Jones
v.
California Emp. Stab. Com.,
The bargaining agreement provided that after six months’ employment, the employee “shall be granted vacation, or in lieu thereof, vacation pay in accordance with the following schedule:” In other states it has been held that where, under the union contract of employment, the employee has the option of taking pay in lieu of vacation, such pay is considered a “bonus” rather than wages or compensation in cases involving unemployment compensation.
(Renown Stove Co.
v.
Michigan Unemp. Comp. Com.
(1950),
Grobe
v.
Board of Review of Dept. of Labor
(1951),
In
Hamlin
v.
Coolerator Co.
(1949),
In
Kelly
v.
Administrator, Unemp. Comp. Act
(1950),
There is no California case expressly discussing the situation concerning in lieu vacation pay. The nearest approach to a discussion is in
Jones
v.
California Emp. Stab. Com., supra,
In
Shand
v.
California Emp. Stab. Com., supra,
Bennett
v.
Hix
(1953) -W.Va.- [
All of the cases we have discussed under either rule dealt with unemployment compensation benefits. None of them dealt with unemployment compensation disability benefits. We can see no reason, however, why those rules should not be applied in defining vacation pay and in lieu vacation pay in disability benefit cases.
Article 10 of the act, dealing with Unemployment Compensation Disability Benefits, was adopted in 1946. It was based upon the Rhode Island Temporary Disability Insurance Act, chapter 1200, Laws of 1942. 7 Originally that act provided “wages is hereby declared to have the same definition as contained in the Unemployment Compensation Act, as amended” (§2 (14).) But chapter 1367, Laws of 1943, amended that section to provide that disability benefits would *111 not be denied because of receipt by the employee, under a previous employer and employee agreement, of regular wages, or parts thereof, during incapacitation. California did not accept this provision. On the contrary, section 208 as heretofore shown, provides that receipt of regular wages disqualifies. It would appear that if our Legislature intended the receipt of moneys other than “regular wages” to disqualify, it would have provided that the definition of wages should be the same as contained in the Unemployment Insurance Act, section 11 (a) (1), which defines them as “All remuneration payable for personal services . . . including commissions and bonuses ...”
It is significant, too, that section 208 states “if he [an employee] continues to receive his regular wages, or any part thereof ...” (Emphasis added.) It could hardly be said that in receiving vacation pay an employee is continuing to receive anything. Such pay is a payment made once or twice during a year and not a payment that continues to be made.
In view of the in lieu vacation pay option clause of the contract, the vacation pay received by plaintiffs did not constitute “regular wages” under section 208 of the act as defined in section 261 (i), Administrative Code, and hence those plaintiffs receiving vacation pay were not thereby disqualified from receiving disability benefits.
Maintenance and Cure
Both the Appeals Board and the court held that maintenance and cure constitutes “regular wages” under section 208 of the act and section 261 (i) of title 22, Administrative Code. The bargaining agreement provides: “Crew members who are entitled to maintenance under the general maritime law doctrine of wages, maintenance and cure, on account of injury or illness incurred in the service of the ship, shall be paid maintenance at the rate of $6.00 per day. ’ ’
Maintenance and cure is a right given seamen arising under the general maritime law, and goes back to ancient times.
(Aguilar
v.
Standard Oil Co.,
In
Harden
v.
Gordon,
11 Fed.Cas. 480, Circuit Justice Story stated that seamen in case of sickness were entitled to be “healed at the expense of the ship” and that their right in that respect “constitutes, in contemplation of law, a part of the contract for wages, and is a material ingredient in the compensation for the labour and services of the seamen.” (P. 481.) This was in 1823. The court was not considering the question in issue here, but the primary question of whether admiralty had jurisdiction of such a claim. For the purpose of giving admiralty jurisdiction, the claim was considered a part of the compensation due a seaman. But the later case of
Agnew
v.
American President Lines, supra,
However, it is contended that plaintiffs’ right to benefits is denied by section 207(b) which provides in effect that the disabled employee is not entitled to benefits during such time as he shall receive with respect to his disability “benefits under a workmen’s compensation law, or employer’s liability law of this state, or of any other state, or of the Federal Government ...” (Emphasis added.)
*113
Are “maintenance and cure” benefits, then, received under a federal workmen’s compensation or employer’s liability law? In
Doucette
v.
Vincent
(1st Cir.),
Owens
v.
Hammond Lbr. Co.
(Dis. Ct., N.D. Calif. S.D.),
In
Occidental Indem. Co.
v.
Industrial Acc. Com.,
We are here concerned with the question of whether maintenance and cure is a benefit under an employer’s liability law of the federal government. California in enacting its unemployment benefit laws has the right to determine who shall be entitled to receive benefits. Here, it has said that persons receiving benefits under workmen’s compensation or employer’s liability laws of either state or federal government shall not receive disability benefits, or if the latter would be greater than the former the disability benefits shall be reduced pro tanto. There is no conflict between the state and the federal government involved. The only question is whether maintenance and cure is paid under either a federal workmen’s compensation or employer’s liability law.
There is no element of workmen’s compensation in it. As pointed out, maintenance and cure is in nowise a statutory obligation of the employer but is a common law liability. While in a sense it is the payment of a liability by an employer, it is not paid under what is commonly considered an employer’s liability law.
It is a general law of statutory construction that where an act of the Legislature refers to “laws,” the expression will be held to refer to statute law, rather than to the common law, unless the context requires a different construction. In
*115
Southern Bell Tel. & Tel. Co.
v.
Beach
(1911),
The constitutional provision that no act shall be passed which shall provide that any existing “law” shall be applicable except by inserting it in such act, refers to other statute law.
(State
v.
Masnik,
While in a broad sense the payment of maintenance and cure is an employer’s liability, there is nothing in the context of section 207(b) which would require an application of anything but the general rule in interpreting the section. Particularly is this so as “workmen’s compensation law” is coupled with “employer’s liability law.” There never was any workmen’s compensation at common law, nor in the strict sense was there any employer’s liability. When one uses either of these terms, “workmen’s compensation law,” “employer’sliability law,” one thinks only of statutory law. In interpreting section 207 (b) section 11 (c) (2) should be *116 borne in mind. It excludes from the definition of “wages” which bar an employee from receiving unemployment compensation benefits “The amount of any payment made to, or on behalf of, an employee under a plan or system established by an employer which makes provision for his employees . . . on account of . . . sickness or accident disability ...” Surely, unless the context requires it, this court should not read into section 207(b) a disqualification from receiving disability benefits which would not be a disqualification as to unemployment compensation benefits. We hold that section 207(b) does not apply in this ease.
It is obvious that the writ of mandate should have issued. The judgment is reversed.
Peters, P. J., and Wood (Fred B.), J., concurred.
A petition for a rehearing was denied February 4, 1955, and respondents’ petition for a hearing by the Supreme Court was denied March 3, 1955. Edmonds, J., Schauer, J., and Spence, J., were of the opinion that the petition should be granted.
Notes
Hereafter referred to as “ disability benefits. ’ ’
The act was greatly revised and is now the Unemployment Insurance Code, adopted April 21, 1953. However, the law applicable here is Act 8780d, Deering’s General Laws, 1949 pocket supplement.
“Maintenance and cure” refers to the traditional payments required by maritime law of shipowners to be paid seamen who are injured or become sick or disabled while in the service of the ship. “Maintenance” is the payment to provide food and shelter to the seaman during the period when he cannot work. “Cure” is the cost of doctor’s services, medicines, etc.
Which filed an amicus curiae brief.
As distinguished from in lieu vacation pay, hereafter discussed.
In analyzing the Jones ease, supra, it should be borne in mind that it was dealing only with unemployment compensation, and that section 9.2 disqualifies from that type of benefit any employee receiving “wages” which are defined in section 11 (a) (1) as “All remuneration ... including commissions and bonuses” whereas the only disqualification from the receipt of disability benefits is “regular wages” as defined in section 261 (i) Adm. Code, herein discussed. In the Shand case, supra, the claim of Mclver (a eoplaintiif) was for disability benefits. However, the court, without considering section 208, treated the two claims, Shand for unemployment compensation and Mclver for disability benefits, exactly the same, seeming to assume without discussion that the act also treated the two situations the same.
See 2 Stan. L. Rev. 348; 22 Cal. State Bar Journal, 132.
