Opinion
Plaintiffs Jose Reyes, Francisco Reyes, Jose Perez and Carlos Flores were employed by defendant Van Elk, Ltd. (Van Elk), on public works projects, which were allegedly subject to California’s prevailing wage law.
(Lab. Code, §§
1
1720-1861.) Plaintiffs sued Van Elk and others for failing to pay prevailing wages. The superior court granted summary judgment in favor of defendants on the grounds undocumented workers were precluded by the federal Immigration Reform and Control Act of 1986 (the IRCA) (8 U.S.C. § 1101 et seq.) and
Hoffman Plastic Compounds, Inc. v. NLRB
(2002)
FACTUAL AND PROCEDURAL SYNOPSIS
Plaintiffs performed welding-related work for Van Elk on different construction projects in Los Angeles County. The causes of action alleged in the complaint include failing to pay prevailing wages, 1 2 breach of contract, recovery under public works payment bond, and unfair business practices. Plaintiffs later added as Doe defendants Fidelity and Deposit Company of Maryland (Fidelity), Fassberg Construction Company (Fassberg) and Morillo Construction, Inc. (Morillo). Van Elk was a subcontractor for Fassberg and Morillo on the subject projects. Fidelity provided the payment bonds for the subject projects.
Defendant Van Elk filed a motion for summary judgment/summary adjudication arguing that pursuant to the IRCA and Hoffman, plaintiffs did not have standing to sue because they were undocumented workers. 3 In support of the “undisputed fact” plaintiffs were undocumented, defendants cited plaintiffs’ discovery responses affirming they were not bom in the United States and had no Social Security numbers and plaintiffs’ refusals to respond to discovery questions regarding citizenship, legal residency status, documented worker status, and work visa information.
Alternatively, defendants sought summary adjudication of their claim that several of the construction projects identified in the complaint were not public works projects. Defendants also sought summary adjudication that the time plaintiffs spent “off-site” fabricating components to be installed at the construction projects was not governed by prevailing wage rates.
In opposition, plaintiffs invoked their statutory privilege to refuse to answer discovery
The court granted summary judgment against Jose Reyes and Carlos Flores in part finding their discovery responses constituted admissions they were not authorized to obtain employment in the United States. Plaintiffs objected to the court’s proposed order.
After a hearing, the court filed a revised order granting summary judgment against all four plaintiffs, finding (1) under Hoffman, plaintiffs had no standing to assert their action, (2) the three statutes making immigration status irrelevant to certain claims were preempted by the supremacy clause of the United States Constitution, and (3) there was no disputed fact plaintiffs were undocumented as the evidence established each plaintiff had not been bom in the United States and had no Social Security number, which shifted the burden to plaintiffs to introduce other evidence of authorization to work in the United States, and no such evidence had been adduced. The court denied summary adjudication on the basis it could not resolve discrete facts within a cause of action.
Plaintiffs filed a timely notice of appeal from the judgment entered after the court granted summary judgment. Defendants filed a timely notice of appeal from the order denying their request for attorney’s fees.
DISCUSSION
I. Introduction
Defendants contend summary judgment was proper because they met their initial burden of showing all plaintiffs were undocumented. “On the grant of summary judgment, the appropriate standard of review is de novo.”
(Schachter
v.
Citigroup, Inc.
(2005)
Defendants argue plaintiffs did not have standing to bring their action as they were not in compliance with federal law, i.e., the IRCA. Thus, one issue presented by this appeal is whether an employee’s undocumented status alone means he or she has no standing to bring an action for the payment of prevailing wages.
n. IRCA
The United States Supreme Court stated “[w]e have often recognized that a ‘primary purpose in restricting immigration is to preserve jobs for American workers.’ ”
(INS v. National Center for Immigrants’ Rights, Inc.
(1991)
The IRCA “ ‘forcefully’ made combating the employment of illegal aliens central to ‘[t]he policy of immigration law.’ ”
(Hoffman Plastic Compounds, Inc. v. NLRB, supra,
“Under the IRCA, it is unlawful to hire or continue to employ an alien the employer knows to be an ‘unauthorized alien,’ defined as one who is not lawfully admitted for permanent residence, or authorized to be so employed by federal immigration and nationality law or by the United States
Several times in defendants’ brief, they claim plaintiffs provided false documents to obtain employment. 4 The only “facts” listed in defendants’ statement of facts in their summary judgment motion are that each plaintiff was “an undocumented worker not legally authorized to work in the United States.” There is no “fact” that plaintiffs provided false documents. The only cited evidentiary support for the claim false documents were provided is in a response to a request for admission by Jose Perez. When Perez was asked if he provided false employment information to Van Elk, he objected, but admitted he had. False employment information is a vague term and could mean any number of things, including false information about an applicant’s employment history, and does not necessarily mean the applicant submitted false work authorization documents. 5
Thus, as presented to this court, this case does not involve a situation where undocumented workers submitted false work authorization documents to a prospective employer. (See, e.g.,
Ulloa v. Al’s All Tree Serv.
(Dist.Ct. 2003)
III. Prevailing Wage Law
“The conditions of employment on construction projects financed in whole or in part by public funds are governed by the prevailing wage law.”
(Lusardi Construction Co.
v.
Aubry
(1992)
“Section 1773 requires the public entity ‘awarding any contract for public work, or otherwise undertaking any public work,’ to obtain from the Director [of the Department of Industrial Relations] the general prevailing rate for each craft, classification or type of worker needed to execute the contract. The public entity must specify those rates in its call for bids, in bid specifications, and in the contract or, alternatively, must specify in those documents that the prevailing wage rates are on file in its principal office. (§ 1773.2.) [][] A contractor for a public works project that
The Legislature has declared that it is the public policy of California “to vigorously enforce minimum labor standards in order to ensure employees are not required or permitted to work under substandard unlawful conditions or for employers that have not secured the payment of compensation, and to protect employers who comply with the law from those who attempt to gain a competitive advantage at the expense of their workers by failing to comply with minimum labor standards.’’ (§ 90.5, subd. (a).)
“It is well established that California’s prevailing wage law is a minimum wage law.”
(Road Sprinkler Fitters Local Union No. 669 v. G & G Fire Sprinklers, Inc.
(2002)
“Earned but unpaid salary or wages are vested property rights.”
(Loehr v. Ventura County Community College Dist.
(1983)
In determining that paying prevailing wages was a statutory obligation, one court noted: “The overall purpose of the prevailing wage law ... is to benefit and protect employees on public works projects. This general objective subsumes within it a number of specific goals: to protect employees from substandard wages that might be paid if contractors could recruit labor from distant cheap-labor areas; to permit union contractors to compete with nonunion contractors; to benefit the public through the superior efficiency of well-paid employees; and to compensate nonpublic employees with higher wages for the absence of job security and employment benefits enjoyed by public employees.”
(Lusardi Construction Co. v. Aubry, supra,
IV. Hoffman
In
Hoffman,
the court concluded that allowing the National Labor Relations
Hoffman
concerned remedies available to undocumented workers under the NLRA and not their standing to file a claim before the NLRB. The Supreme Court reaffirmed the portion of its earlier holding in
Sure-Tan, Inc. v. NLRB
(1984)
In
Patel
v.
Quality Inn South
(11th Cir. 1988)
Defendants argue
Hoffman
would prohibit plaintiffs’ action for unpaid prevailing
Defendants cite three cases, which they claim support their position. Two of those cases note that
Hoffman
did not preclude an undocumented worker’s claim for wages for work already performed.
(Crespo v. Evergo Corp.
(App.Div. 2004)
In
Zavala v. Wal-Mart Stores, Inc.
(D.N.J. 2005)
V. Preemption
The superior court found that because there was no dispute plaintiffs were undocumented, the burden shifted to them to introduce evidence of their authorization to work in the United States. Plaintiffs argue that finding was improper under section 1171.5 and the other statutes declaring all residents of California are entitled to the protection of California’s labor, employment, civil rights and employee housing laws regardless of immigration status.
Section 1171.5 9 reads, in relevant part:
“(a) All protections, rights, and remedies available under state law, except any reinstatement remedy prohibited by federal law, are available to all individuals regardless of immigration status who have applied for employment, or who are or who have been employed, in this staté.
“(b) For purposes of enforcing state labor and employment laws, a person’s immigration status is irrelevant to the issue of liability, and in proceedings ordiscovery undertaken to enforce those state laws no inquiry shall be permitted into a person’s immigration status except where the person seeking to make this inquiry has shown by clear and convincing evidence that the inquiry is necessary in order to comply with federal immigration law.
“(c) The provisions of this section are declaratory of existing law.”
Citing section 1171.5, one court observed, “Thus, if an employer hires an undocumented worker, the employer will also bear the burden of complying with this state’s wage, hour and workers’ compensation laws.”
(Hernandez
v.
Paicius
(2003)
“ ‘Article VI of the Constitution provides that the laws of the United States “shall be the supreme Law of the Land; . . . any Thing in the Constitution or Laws of any state to the Contrary notwithstanding.” Art. VI, cl. 2. Thus, . . . state law that conflicts with federal law is “without effect.” . . . Consideration of issues arising under the Supremacy Clause
“start[s] with the assumption that the historic police powers of the States [are] not to be superseded by . . . Federal Act unless that [is] the clear and manifest purpose of Congress.” [|] Examples of historic police powers include ‘[c]hild labor laws, minimum and other wage laws, laws affecting occupational health and safety, and workmen’s compensation laws ‘States possess broad authority under their police powers to regulate the employment relationship to protect workers within the State.’ . . . ‘Accordingly, “ ‘[t]he purpose of Congress is the ultimate touchstone’ ” of pre-emption analysis.. .. [f] Congress’ intent may be “explicitly stated in the statute’s language or implicitly contained in its structure and purpose.” ... In the absence of an express congressional command, state law is pre-empted if that law actually conflicts with federal law, . . . , or if federal law so thoroughly occupies a legislative field “ ‘as to make reasonable the inference that Congress left no room for the States to supplement it.’ ” ’ ”
(Farmer Brothers Coffee v. Workers’ Comp. Appeals Bd., supra,
133 Cal.App.4th at pp. 538-539, citations omitted, underscoring added; see also
Cipollone v. Liggett Group, Inc.
(1992)
“Power to regulate immigration is unquestionably exclusively a federal power. . . . But the Court has never held that every state enactment which in any way deals with aliens is a regulation of immigration and thus per se pre-empted by this constitutional power, whether latent or exercised.”
(De Canas v. Bica
(1976)
Citing
Sanango v. 200 E. 16th St Hous.
(N.Y.App.Div. 2004)
Because legislation providing for the payment of prevailing wages comes under the historic police powers of the state, the presumption is that legislation is not superseded by the IRCA. Defendants do not cite any provision in the IRCA preempting state wage and hour legislation. The only specific preemption provision prohibits state or local law from imposing civil or criminal sanctions upon those who employ
In
Farmer Brothers,
the court determined California’s Workers’ Compensation Act did not conflict with the IRCA.
(Farmer Brothers Coffee v.
Workers’ Comp. Appeals Bd., supra,
133 Cal.App.4th at pp. 539-542.) “As it stated in its report prior to the passage of the IRCA, the House Judiciary Committee discerned no intention in the statute ‘that the employer sanctions provisions of the bill be used to undermine or diminish in any way labor protections in existing law, or to limit the powers of federal or state . . . labor standards agencies . . . .’ (H.R.Rep. No. 99-682(1), 2d Sess. (1986), reprinted in 1986 U.S. Code Cong. & Admin. News, p. 5662 . . . .)”
10
(Farmer Brothers Coffee v. Workers’ Comp. Appeals Bd., supra,
Defendants argue the
post-Hoffman
California statutes are in direct conflict with
Hoffman
as they prevent or frustrate the accomplishment of federal objectives. We conclude there is no actual conflict between the IRCA and the prevailing wage law as the state law is not an obstacle to the accomplishment and execution of the full purposes and objectives of the IRCA. (Cf.
Farmer Brothers Coffee
v.
Workers’ Comp. Appeals Bd., supra,
The ultimate goal of the IRCA is to control illegal immigration into the United States by prohibiting the employment of unauthorized aliens. (3A Am.Jur.2d (2005) Aliens and Citizens, § 25, p. 73; 8 U.S.C. § 1324a(a).) Allowing employers to hire undocumented workers and pay them less than the wage mandated by statute is a strong incentive for the employers to do so, which in turn encourages illegal immigration. The fact an employer pays a worker less than the prevailing wage suggests the employer knew the worker was undocumented. Moreover, it is not the public which benefits from the savings. Employers are awarded public works contracts based on bids—bids which provide for the payment of prevailing wages. When prevailing wages are not paid, it is the employer who pockets the difference just as if it had provided substandard materials to those promised in a contract. (See
People
v.
Hwang, supra,
In Hoffman, the undocumented worker obtained employment by using false authorization documents; the court determined the award of backpay violated the' IRCA because it provided wages for work not performed and for work that could not have been performed without violating the IRCA. (Hoffman Plastic Compounds, Inc. v. NLRB, supra, 535 U.S. at pp. 141, 149-150.) In contrast to Hoffman, the work at issue in the case at bar had already been performed. The Hoffman court concluded, “recognizing employer misconduct but discounting the misconduct of illegal alien employees, subverts [the IRCA].” (Id., at p. 150.) Allowing employers to hire undocumented workers and pay them less than the prevailing wage would also subvert the IRCA by condoning and encouraging future violations by employers. Moreover, such awards do not condone future unauthorized work; rather they make it clear that employers should not be allowed to profit from employing undocumented workers and then exploiting them.
As one federal circuit court reasoned: “We recognize the seeming anomaly of discouraging illegal immigration by allowing undocumented aliens to recover in an action under the FLSA. We doubt, however, that many illegal aliens come to this country to gain the protection of our labor laws. Rather it is the hope of getting a job—at any wage—that prompts most illegal aliens to cross our borders. By reducing the incentive to hire such workers the FLSA’s coverage of undocumented aliens helps discourage illegal immigration and is thus fully consistént with the objectives of the IRCA.”
(Patel v. Quality Inn South, supra,
846 F.2d at pp. 704-705;
Singh v. Jutla
(N.D.Cal. 2002)
In conclusion, we hold that Hoffman and their undocumented status did not prohibit plaintiffs from having standing to raise their prevailing wage claim and that the prevailing wage law and the post-Hoffman statutes are not preempted by the IRCA. Accordingly, we reverse the judgment and the order granting summary judgment and direct the superior court to enter an order denying the motion for summary judgment. We need not consider the cross-appeal from the order denying defendants’ request for attorney’s fees.
DISPOSITION
The judgment is reversed with directions to enter an order denying the motion for summary judgment. Plaintiffs to recover costs on appeal.
Perluss, P. J., and Johnson, J., concurred.
The petition of defendants and appellants for review by the Supreme Court was denied June 13, 2007, S152133.
Notes
Unless otherwise noted, all statutory references are to the Labor Code.
Plaintiffs were paid wages, but not prevailing wages.
At oral argument, the parties stated all defendants were before the court on the summary judgment motion. However, judgment was only entered in favor of three of the four defendants—Van Elk, Fidelity and Fassberg. Morillo was not named in the judgment. Accordingly, the issue of whether the general contractors should be dismissed may be raised in the superior court.
The IRCA requires employers to verify that each new hire is authorized to work in the United States. The employee must present documents establishing his or her identity and employment authorization. (For list of acceptable documents see 8 U.S.C. § 1324a(b); 8 C.F.R. § 274a.2(b)(l)(v) (2007).)
One amicus curiae claims its clients regularly report that they are given documents and false names by the employers who hire them as a condition of employment. There is some indication in the record that Van Elk did not ask for employment authorization documents from plaintiffs.
Thus, defendants’ contention that even if the IRCA and
Hoffman
do not apply, plaintiffs are not entitled tó be paid the prevailing wage because such wages are a special remedy is without merit as paying prevailing wages is a statutory duty not a remedy. Even though in
San Francisco Labor Council v. Regents of University of California
(1980)
“Back pay” “seeks to make an employee whole by awarding wages that would have been earned but for an unlawful firing.”
(Martinez
v.
Mecca Farms, Inc.
(S.D.Fla. 2002)
The prevailing wage law uses the general term “worker” and does not restrict workers to citizens.
Civil Code section 3339 and Government Code section 7285 contain similar language, but include civil rights and employee housing laws under the protection afforded by section 1171.5, subdivision (b). The Legislature enacted those three statutes in response to
Hoffman. (Rivera v. NIBCO, Inc.
(9th Cir. 2004)
“Although a committee report is not dispositive of congressional intent . . . , it may be helpful in discerning it.”
(Farmer Brothers Coffee
v.
Workers’ Comp. Appeals Bd., supra,
