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Post v. Palo/Haklar & Associates8/3/2000
After conducting an administrative hearing on a wage claim brought by respondent herein, Jonathan Vos Post (hereafter Post), the Labor Commissioner (hereafter commissioner) served the parties with a notice of dismissal, on the ground that " n employer-employee relationship between the parties was not conclusively established." Post appealed and the superior court ruled that he was an employee and awarded him unpaid wages. We granted review to address the question whether such appeal was properly taken. For the reasons stated below, we conclude that the answer is yes.
I.
In August 1995, Post filed a complaint before the commissioner, pursuant to Labor Code section 98, to recover unpaid wages and expenses from defendants Palo/Haklar & Associates and individuals Paul Palo and Peter Haklar (hereafter Palo/Haklar) for the period of August 1, 1994, through April 1, 1995. The commissioner set the matter for hearing, and the parties were duly served with notice thereof. After the hearing, which lasted 18 hours over a two day period, the commissioner took the matter under submission.
In May 1997, the commissioner served the parties with a document entitled "Notice of Dismissal," stating as follows: "The above-entitled matter came before the Labor Commissioner of the State of California, pursuant to the provisions of Section 98 of the California Labor Code, and all parties were duly served with the Notice of Hearing. The complaint is dismissed for the following reasons: [ ] An employer-employee relationship between the parties was not conclusively established. The Labor Commissioner does not assert jurisdiction." Post filed a notice of appeal requesting that the cause be set for a hearing de novo in the superior court, in accordance with Labor Code section 98.2.
In August 1997, a hearing de novo was held in the superior court. Post presented evidence that he was employed by Palo/Haklar at a rate of $2,000 a month, plus travel and office expenses, to work on CD-ROM educational and entertainment projects. Paul Palo and Peter Haklar, appearing in propria persona, countered that Palo/Haklar had no employees and had never hired Post; instead, he had approached them with a proposal for obtaining financing and new clients with the possibility of eventual formation of a new business venture with him as a partner. The superior court found for Post, concluding that he had been employed by Palo/Haklar. It awarded him unpaid wages and travel and office expenses in the amount of $28,581.52. Palo/Haklar moved to strike costs and for relief from judgment and/or stay of enforcement; both motions were denied.
Palo/Haklar appealed on the ground, inter alia, that the commissioner's dismissal of the claim was not appealable pursuant to Labor Code section 98. The Court of Appeal requested additional briefing on the question whether there was a right of appeal to the superior court from the commissioner's dismissal of Post's wage claim. It reversed the judgment of the superior court, concluding that the superior court had no jurisdiction to review the commissioner's jurisdictional determination. Post's remedy was not to appeal the commissioner's decision to the superior court, but to file an original civil lawsuit.
We granted review of the question whether the commissioner's decision was appealable; we now reverse the judgment of the Court of Appeal and remand the matter for further proceedings.
II.
As we explained in Cuadra v. Millan (1998) 17 Cal.4th 855, 859, if an employer fails to pay wages in the amount, time, or manner required by contract or statute, the employee may seek administrative relief by filing a wage claim with the com
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