Wage Law

In an unpublished opinion in the case of Utgard v. Employment Development Department, (G035811, Superior Court. No. 04CC09382), the 4th District Court of Appeal affirmed Orange County Superior Court judge Gregory Munoz's order sustaining a demurrer by the Employment Development Department (EDD) and the Department of Industrial Relations (DIR) for denial of unemployment benefits and failure to act on a claim for nonpayment of wages and unfair labor practices.

In connection with the wage portion of the claims, the plaintiff, representing himself, filed 10 complaints with the Labor Commissioner and the DIR, in the form of mere emails and letters, for unpaid wages and unfair labor practices in violation of the Labor Code. He alleged they were never answered, and thus, he filed a complaint against the DIR for “due process,” “negligence,” and “misfeasance.” After the court sustained a demurrer without leave to amend as to all causes of action except negligence (we are curious as to how that one remained), the plaintiff filed a second amended complaint with two causes of action: (i) “failure to discharge a statutory duty” (Government Code § 815.6); and (ii) negligence per se. He claimed general and a variety of special damages on both causes of action, including loss of wages, personal property and income, damage to his credit, "loss of the ability to seek restitution from his employers", and costs. He also requested "that the state investigate the manner in which its agencies operate." The court sustained the demurrer to the second amended complaint without leave to amend.

For a myriad of reasons, the Court of Appeal affirmed, including the trial court's refusal to grant leave to amend. On appeal, the plaintiff had the burden to show “there is a reasonable possibility the defect in the pleading can be cured by amendment." Mr. Utgard would not or could not do so. Consequently, his wage claims are now gone. As he learned the hard way, sometimes it is best just to get a lawyer.