Sampson v. Parking Service 2000 Com, Inc.

Decision Date30 March 2004
Docket NumberNo. B163735,B163735
PartiesGeorge SAMPSON, Plaintiff and Appellant, v. PARKING SERVICE 2000 COM, INC., Defendant and Respondent.
CourtCalifornia Court of Appeals Court of Appeals

Lon B. Isaacson Associates, Lon B. Isaacson and Larry D. Johnson for Plaintiff and Appellant.

Scott Gailen, Inc., and Scott Gailen, Woodland Hills, for Defendant and Respondent.

CROSKEY, J.

Under the Labor Code, if an employer fails to pay overtime compensation, the employee may file a civil action (Lab.Code, § 1194)1 or may pursue an administrative remedy set forth in sections 98 et seq., by filing a complaint with the Labor Commissioner (hereafter commissioner).2 Section 1194 provides in pertinent part that an "employee is entitled to recover in a civil action the unpaid balance of the full amount of ... overtime compensation, including interest thereon, reasonable attorney's fees, and costs of suit." In this case, we must decide whether the term "civil action" as it appears in section 1194 means only actions filed in court, or whether it also includes administrative proceedings before the commissioner to recover overtime wages. We conclude that a civil action is one filed in court. We further conclude that because appellant George Sampson (Sampson) elected to pursue his administrative remedy, his right to recover attorney fees is not governed by section 1194, but by section 98.2, subdivision (c).3 The right to recover attorney fees in that code section is limited to those fees incurred on appeal from the commissioner's decision. On this basis, we affirm the trial court's order limiting Sampson's attorney fees to those incurred in the trial de novo following his employer's appeal of the commissioner's decision.

In the unpublished portion of this opinion, we reject Sampson's challenge to the amount of the attorney fees awarded.

FACTUAL AND PROCEDURAL BACKGROUND

Sampson filed a wage claim with the Department of Labor Standards Enforcement (i.e., the commissioner) against his former employer Parking Service 2000.Com., Inc. (employer). Sampson had worked for more than 16 months as a manager for employer at employer's car wash and detail operation at Mountaingate Country Club. After Sampson was fired, he sought to recover, among other things, overtime compensation because employer had erroneously considered him to be an employee exempt from overtime. In addition to alleging failure to pay overtime compensation, Sampson's administrative complaint alleged that employer had failed to pay wages, vacation pay, and tips, totaling about $57,712. The complaint also sought "waiting time" penalties. (§ 203.)

Sampson retained counsel (hereafter attorneys) to represent him before the commissioner. In addition to preparing the administrative complaint, attorneys interviewed potential witnesses and subpoenaed business records from Mountaingate Country Club and employer. These records included individual receipts reflecting tips and provided a basis from which attorneys could estimate the number of hours Sampson worked during his employment. The attorneys also attended settlement conferences before participating in the two-day administrative hearing. Following the administrative hearing, the hearing officer decided in Sampson's favor and awarded him approximately $58,350.

Employer challenged the decision and timely sought a trial de novo in the superior court. (§ 98.2, subd. (a).) After a five-day court trial, the court entered a judgment awarding Sampson $29,277. The award included $11,812, in overtime compensation; $8,750, in unpaid tips; $500, in unpaid vacation; $2,965, in interest; and $5,250, in waiting time penalties.

Sampson filed a posttrial motion requesting $45,597.78 in statutory attorney fees and costs under section 1194. The request for fees included those Sampson incurred during the administrative proceeding and during the trial de novo in superior court. Employer opposed the motion, contending that Sampson was only entitled to statutory fees under section 98.2, subdivision (c), which limited the recovery of fees to those incurred during the trial de novo in superior court.

The trial court concluded that the administrative proceeding before the commissioner was not a "civil action" within the meaning of section 1194. Therefore, it limited Sampson's fees to those incurred during the trial de novo. Sampson incurred $15,235 in attorney fees following his employer's request for a trial de novo. The trial court awarded him $6,750. Sampson timely filed this appeal contesting the attorney fees order on the grounds that the trial court erred in its interpretation of section 1194 and abused its discretion in determining the amount of attorney fees awarded.4

CONTENTIONS

Sampson contends that section 1194 applies to administrative proceedings before the commissioner. That argument necessarily depends upon the meaning of the term "civil action" as used in section 1194. Sampson principally asserts that because section 1194 does not define "civil action," we should import the definition of that term from section 30 of the Code of Civil Procedure. That code section, according to Sampson, defines a civil action as an action "prosecuted by one party against another for the declaration, enforcement or protection of a right," which, in his view, includes an overtime compensation claim prosecuted before the commissioner.

DISCUSSION
1. Standard of Review

We exercise our independent review to determine whether the Legislature intended the term "civil action" as it appears in section 1194 ("the employee is entitled to recover in a civil action ... reasonable attorney's fees") to mean only actions in a court of justice or to include administrative proceedings before the commissioner. (Cf. Smith v. Rae-Venter Law Group (2002) 29 Cal.4th 345, 357, 127 Cal.Rptr.2d 516, 58 P.3d 367; Earley v. Superior Court (2000) 79 Cal.App.4th 1420, 1426, 95 Cal.Rptr.2d 57 (Earley); Californians for Population Stabilization v. Hewlett-Packard Co. (1997) 58 Cal.App.4th 273, 294, 67 Cal.Rptr.2d 621.)

2. Overview of Administrative and Judicial Remedies to Recover Unpaid Wages

Sampson urges on appeal that section 1194 applies irrespective of whether he initiated his overtime compensation claim in a judicial or administrative forum. Sampson's argument requires us to review the procedural context in which this attorney fees dispute arises.

Under the Labor Code, "If an employer fails to pay wages in the amount time or manner required by contract or by statute, the employee has two principal options. The employee may seek judicial relief by filing an ordinary civil action against the employer for breach of contract and/or for the wages prescribed by statute. (§§ 218, 1194.) Or the employee may seek administrative relief by filing a wage claim with the commissioner pursuant to a special statutory scheme codified in sections 98 to 98.8." (Cuadra v. Millan (1998) 17 Cal.4th 855, 858, 72 Cal.Rptr.2d 687, 952 P.2d 704 [italics in original], disapproved on another ground in Samuels v. Mix (1999) 22 Cal.4th 1, 16, fn. 4, 91 Cal.Rptr.2d 273, 989 P.2d 701; see also Smith v. Rae-Venter Law Group, supra, 29 Cal.4th at p. 355, 127 Cal.Rptr.2d 516, 58 P.3d 367.)5

a. Employee's Administrative Remedy in Sections 98 through 98.2

Sampson filed an administrative complaint with the commissioner to recover overtime compensation and unpaid wages. Labor Code sections 98 through 98.2 confers authority on the commissioner to adjudicate these wage claims through an administrative process. In Post v. Palo/Haklar & Associates (2000) 23 Cal.4th 942, 946-948, 98 Cal.Rptr.2d 671, 4 P.3d 928 (Post), our Supreme Court summarized that administrative process:

"The commissioner may investigate complaints; his or her powers include the right to make inspections, subpoena witnesses and documents, and conduct examinations of witnesses. (See Lab.Code, §§ 74, 92.) Within 30 days of the filing of a complaint, the commissioner must notify parties as to whether he or she will take further action. (Id., § 98, subd. (a).) The statute provides for three alternatives: the commissioner may either accept the matter and conduct an administrative hearing (see id., §§ 98-98.2), prosecute a civil action for the collection of wages and other money payable to employees arising out of an employment relationship (see id., § 98.3), or take no further action on the complaint. (Id., § 98, subd. (a).)

"If the commissioner decides to accept the matter and conduct an administrative hearing — commonly known as a `Berman hearing' after the name of its sponsor, then Assemblyman Howard Bermanhe or she must hold the hearing within 90 days, although he or she has discretion to `postpone or grant additional time before setting a hearing if the [commissioner] finds that it would lead to an equitable and just resolution of the dispute.' (laB.codE, § 98, subd. (a).)

"Labor Code section 98, subdivision (a), expressly declares the legislative intent that hearings be conducted `in an informal setting preserving the right of the parties.' The Berman hearing procedure is designed to provide a speedy, informal, and affordable method of resolving wage claims. (Cuadra v. Millan, supra, 17 Cal.4th at p. 858, 72 Cal.Rptr.2d 687, 952 P.2d 704.) As we explained in Cuadra, `the purpose of the Berman hearing procedure is to avoid recourse to costly and time-consuming judicial proceedings in all but the most complex of wage claims.' (Id. at p. 869, 72 Cal.Rptr.2d 687, 952 P.2d 704.) [¶] ... [¶])

"Within 15 days after the Berman hearing is concluded, the commissioner must file a copy of his or her order, decision, or award and serve notice thereof on the parties. (Lab.Code, § 98.1.) The order, decision, or award must include a summary of the hearing and the reasons for the decision, and must...

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