1

Filed 3/8/17

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

THIRD APPELLATE DISTRICT

(Sacramento)

----

GATEWAY COMMUNITY CHARTERS,

Plaintiff and Appellant,

v.

HEIDI SPIESS,

Defendant and Respondent.

C078677

(Super. Ct. No. 34-2013-

00149018-CU-PT-GDS)

APPEAL from a judgment of the Superior Court of Sacramento County, 

Christopher E. Krueger, Judge. Affirmed.

Young, Minney & Corr, Paul C. Minney, James E. Young, William J. Trinkle and 

Rachel B. Tillman for Plaintiff and Appellant.

Procopio, Cory, Hargreaves & Savitch, Wendy L. Tucker; California Charter 

Schools Association, Ricardo J. Soto, Julie Ashby Umansky and Phillipa L. Altmann for 

California Charter Schools Association as Amici Curiae on behalf of Plaintiff and 

Appellant.

Outten & Golden, Jennifer S. Schwartz and Menaka N. Fernando for Defendant 

and Respondent.
2

In this appeal, we are called upon to answer a novel question of statutory 

interpretation: whether Gateway Community Charters (Gateway), a nonprofit public 

benefit corporation that operates charter schools, is an “other municipal corporation” for 

purposes of Labor Code section 220, subdivision (b) (hereafter section 220(b)),

1 thereby 

exempting it from assessment of waiting time penalties described in section 203. We 

conclude it is not; therefore, we affirm the judgment of the trial court. 

FACTUAL AND PROCEDURAL BACKGROUND

Gateway is a California nonprofit public benefit corporation that operates public 

charter schools, including the school at which Heidi Spiess worked as an at-will 

employee. Gateway was the statutory “exclusive public school employer” of all the 

employees at the charter school, including Spiess. Following her termination, Spiess 

filed a claim with the labor commissioner alleging Gateway failed to pay timely her 

wages due and owing as required by section 201. In its decision awarding Spiess $640 in 

wages, $128 in liquidated damages, $105.20 in interest, and $8,538 as a penalty pursuant 

to section 203, the labor commissioner expressly concluded Gateway did not qualify as 

an “ ‘other municipal corporation’ ” under section 220(b).2

 

1 Undesignated statutory references are to the Labor Code. 

2 Though the position of the labor commissioner may be persuasive authority as to an 

issue within its purview where the labor commissioner takes a consistent stance as to that 

issue, where, as here, the labor commissioner has not taken a consistent position, as 

demonstrated by the cases presented by Gateway in exhibits 1 and 5 of its request for 

judicial notice, its interpretation is not entitled to “ ‘significant deference.’ ” (Murphy v. 

Kenneth Cole Productions, Inc. (2007) 40 Cal.4th 1094, 1105, fn. 7.) Therefore, we 

grant Gateway’s request for judicial notice as to those two exhibits; we deny the request 

as to the other exhibits because they are not facially relevant to the instant case. 

Additionally, in light of its inconsistent position on this issue, we proceed with our 

analysis without deference to the labor commissioner’s decision. 
3

Gateway appealed that decision to the trial court pursuant to section 98.2, claiming 

it was exempt from section 203 penalties as an “other municipal corporation” pursuant to 

section 220(b). Following a trial de novo, the trial court too entered judgment finding 

that Gateway is not an “other municipal corporation” for purposes of section 220(b) and 

was not exempt from paying waiting time penalties pursuant to section 203. It ordered 

Gateway to pay Spiess $640 in wages, $128 in liquidated damages, $105.20 in interest, 

and $8,538 in waiting time penalties, plus costs, interest, and attorney fees. 

DISCUSSION

Gateway contends it qualifies as an “other municipal corporation” for purposes of 

section 220(b), thereby exempting it from the assessment of waiting time penalties as 

described in section 203. Section 220(b) provides that the waiting time penalty codified 

in section 203, subdivision (a) does not apply “to the payment of wages of employees 

directly employed by any county, incorporated city, or town or other municipal 

corporation.” (§ 220(b).) Contrary to Gateway’s contention, we conclude Gateway is not 

an “other municipal corporation” for purposes of the statutory exemption from waiting 

time penalties codified in section 220(b). 

As we have frequently explained, “ ‘[o]ur fundamental task in construing’ . . . any 

legislative enactment[] ‘is to ascertain the intent of the lawmakers so as to effectuate the 

purpose of the statute.’ [Citation.] We begin as always with the statute’s actual words, 

the ‘most reliable indicator’ of legislative intent, ‘assigning them their usual and ordinary 

meanings, and construing them in context. If the words themselves are not ambiguous, 

we presume the Legislature meant what it said, and the statute’s plain meaning governs. 

On the other hand, if the language allows more than one reasonable construction, we may 

look to such aids as the legislative history of the measure and maxims of statutory 

construction. In cases of uncertain meaning, we may also consider the consequences of a 

particular interpretation, including its impact on public policy.’ ” (Even Zohar 
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Construction & Remodeling, Inc. v. Bellaire Townhouses, LLC (2015) 61 Cal.4th 830, 

837-838.) 

The term “other” is inherently ambiguous. (Zumbrun Law Firm v. California 

Legislature (2008) 165 Cal.App.4th 1603, 1619.) Thus, to assist us in the interpretation 

of the phrase in question here—“other municipal corporation”—we turn to the related 

maxims of construction of noscitur a sociis (“literally, ‘it is known from its associates’ ”) 

and ejusdem generis (“literally, ‘of the same kind’ ”). (California Farm Bureau 

Federation v. California Wildlife Conservation Bd. (2006) 143 Cal.App.4th 173, 189.) 

“Noscitur a sociis . . . means that a word may be defined by its accompanying words and 

phrases, since ‘ordinarily the coupling of words denotes an intention that they should be 

understood in the same general sense.’ [Citation.] Ejusdem generis . . . means that where 

general words follow specific words, or specific words follow general words in a 

statutory enumeration, the general words are construed to embrace only things similar in 

nature to those enumerated by the specific words.” (Ibid.) 

Here, the specifically listed words that precede “other municipal corporation” are 

“any county, incorporated city, or town.” (§ 220(b).) As “other” is an “inherently 

relational” term, its use suggests that the previously referenced entities in the sequence 

share the same characteristic or characteristics as the entity mentioned immediately 

thereafter, that is those of a “municipal corporation.” (See People v. Hubbard (2016) 

63 Cal.4th 378, 387.) We must then ascertain what key characteristics are common to a 

“county, incorporated city, or town” that another entity must possess to enable it to be 

characterized as an “other municipal corporation.” 

Gateway relies on Division of Labor Law Enforcement v. El Camino Hosp. Dist. 

(1970) 8 Cal.App.3d Supp. 30 (El Camino) in support of its claim that it is an “other 
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municipal corporation.”3 El Camino was primarily concerned with whether the term 

“other municipal corporation” should be read strictly—thereby limiting it to incorporated 

cities or towns—or more broadly—to include public or quasi-municipal corporations. 

(El Camino, supra, at p. Supp. 35.) It concluded only the broad interpretation was 

reasonable and would give effect to all language included in the provision. (Ibid.) In 

reaching this conclusion, El Camino further noted that the “ ‘characteristic feature of the 

municipal corporation, as that term is used in its strict or proper sense, is the power and 

right of local self-government,’ ” and that “ ‘quasi-municipal corporations are public 

agencies created or authorized by the Legislature to aid the state in some form of public 

or state work, other than community government.’ ” (Id. at p. Supp. 33.) Finally, it held, 

without further analysis, that the public hospital district in question was a quasimunicipal corporation that qualified for purposes of section 220(b) as an “other municipal 

corporation,” thereby exempting it from waiting time penalties. (El Camino, at 

pp. Supp. 33, 36.) 

Gateway also relies on Kistler v. Redwoods Community College Dist. (1993) 

15 Cal.App.4th 1326. Relying on El Camino without any additional analysis, Kistler

concluded that the community college district at issue was “a ‘municipal corporation’ ” 

for purposes of section 220(b). (Kistler, at p. 1337; see Ed. Code, § 70900 et seq. 

[powers, governance, and regulation of community college districts].) 

Based on El Camino and Kistler, one might deduce, as Gateway and amicus curiae 

California Charter Schools Association (CCSA) appear to do, that the only showing that 

must be made to qualify as a quasi-municipal corporation or “other municipal 

corporation” for purposes of section 220(b), is that (1) the entity was created or 

 

3 We note that this case, though persuasive, is not binding precedent as it comes from the 

appellate division of a superior court. (Suastez v. Plastic Dress-Up Co. (1982) 31 Cal.3d 

774, 782, fn. 9.) 
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authorized by the Legislature, and (2) it performs some kind of public or state work. We 

disagree with that deduction, however. The entity at issue in El Camino, a public hospital 

district, bore other characteristics reminiscent of a municipal corporation that are not 

present here and that were not expressly discussed in El Camino. (See Health & Saf. 

Code, § 32000 et seq. [powers, governance, and regulation of local health care or hospital 

districts].) The same is true of the community college district at issue in Kistler. These 

characteristics were described in some detail in Johnson v. Arvin-Edison Water Storage 

Dist. (2009) 174 Cal.App.4th 729 (Johnson), which considered whether a water storage 

district qualified as an “other municipal corporation” for purposes of section 220(b). 

Johnson began by noting that in other contexts irrigation and water districts had 

been deemed municipal corporations, and that a water storage district provided the same 

principal function and bore no essential difference from irrigation or water districts. 

(Johnson, supra, 174 Cal.App.4th at p. 741.) Johnson detailed the identifying 

characteristics of these entities, explaining that “water storage districts are governed by 

elected boards of directors that have regulatory and police powers to operate facilities for 

storage and distribution of water,” including the power to “set[] tolls and charges for the 

use of water, issu[e] bonds, and acquir[e] property through eminent domain.” (Ibid.) 

They are subject to open meeting laws and their records are subject to public disclosure. 

(Ibid.) “Thus, water storage districts perform an essential governmental function for a 

public purpose, i.e., the development, preservation and conservation of water for the 

beneficial use of the district’s inhabitants [citation], through an elected board of directors 

with regulatory powers. As such, water storage districts qualify as other municipal 

corporations under section 220, subdivision (b).” (Ibid.) 

Johnson thus makes clear that while the performance of “an essential 

governmental function for a public purpose” is crucial to determining whether an entity is 

an “other municipal corporation,” it is not the only factor to be considered. (Johnson, 
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supra, 174 Cal.App.4th at p. 741.) We must also consider, for example, whether the 

entity is governed by an elected board of directors; whether the entity has regulatory or 

police powers; whether it has the power to impose taxes, assessments, or tolls; whether it 

is subject to open meeting laws and public disclosure of records; and whether it may take 

property through eminent domain. 

Gateway and amicus curiae CCSA rely on El Camino and on the language of 

Johnson highlighting the importance of whether the entity provides a public purpose to 

contend that it should be considered an “other municipal corporation.” We are not 

persuaded. We acknowledge Gateway undoubtedly provides an essential governmental 

function, in that it provides public education through the charter schools it operates. It is 

also subject to the open meeting laws of the Ralph M. Brown Act and the California 

Public Records Act. (Gov. Code, §§ 54950-54952, 6250 et seq.; see Yoffie v. Marin 

Hospital Dist. (1987) 193 Cal.App.3d 743, 748-749.) These factors are in its favor. 

However, Gateway does not have the power to acquire property through eminent 

domain; it may not impose taxes and fees upon those who live within its geographical 

jurisdiction, indeed it has no geographical jurisdiction but exists pursuant to its charter; it 

has no independent regulatory or police powers but remains subject to the limitations of 

its charter throughout its existence; and its board of directors is not comprised of 

members elected by the public. Without these multiple crucial characteristics that are 

common to municipal and quasi-municipal corporations, we cannot conclude Gateway, a 

nonprofit public benefit corporation, is an “other municipal corporation” for purposes of 

section 220(b). In truth, without the publicly elected board, the geographical 

jurisdictional boundary, and the power to forcefully raise funds or acquire property from 

people within its geographical jurisdiction, Gateway bears little resemblance to a 

“county, incorporated city, or town” or to the quasi-municipal districts that have been 

deemed to qualify as “other municipal corporations” (for purposes of section 220(b)), i.e., 
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public school districts, hospital districts, and water storage districts. Therefore, it does 

not appear the Legislature intended nonprofit public benefit corporations operating 

charter schools to be exempt from waiting time penalties as “other municipal 

corporations” pursuant to section 220(b). 

Nor are we persuaded by Gateway and CCSA’s reliance on specific statutory 

designations naming charter schools “part of the Public School System” (Ed. Code, 

§ 47615), as “school districts” for funding purposes (Ed. Code, § 47612, subd. (c)), and 

as “exclusive public school employers” for collective bargaining purposes (Ed. Code, 

§ 47611.5; Gov. Code, § 3540.1, subd. (k)) as evidence that the Legislature intended 

charter schools to be deemed “other municipal corporations,” just as public school 

districts are (El Camino, supra, 8 Cal.App.3d at pp. Supp. 34, 36 [public school district is 

public corporation or quasi-municipal corporation]). Even setting aside that these 

express, specific, and limited statutory designations are in other codes and for other 

purposes not at issue here, this position is untenable given that for a variety of other 

purposes, charter schools are treated differently than public school districts. Charter 

schools are expressly permitted to opt out of various regulations controlling public school 

employment (Ed. Code, §§ 47605, 47611.5), including, for example, teacher tenure rules 

(Ed. Code, § 44929.21, subd. (b)), presuspension or dismissal notice and hearing 

requirements (Ed. Code, § 44934), a right to continued employment (see Ed. Code, 

§ 44955), and employment of only credentialed teachers (Ed. Code, § 47605, subd. (l)). 

Thus, though charter schools in some ways and for some purposes are treated as public 

school districts, for other purposes they are not. 

Additionally, the Education Code has been amended, as highlighted by Gateway 

and CCSA, to expressly treat charter schools like school districts for purposes of payment 

methods (i.e., over 10, 11, or 12 months, regardless of months worked). (Ed. Code, 

§§ 45038-45039.) However, that the statutes were amended to expressly identify charter 
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schools separately from school districts is a further indication that charter schools are not 

school districts for all purposes. (See Tuolumne Jobs & Small Business Alliance v. 

Superior Court (2014) 59 Cal.4th 1029, 1038-1039 [“courts should give meaning to 

every word of a statute and should avoid constructions that would render any word or 

provision surplusage”].) Therefore, the statutory designations identified by Gateway and 

CCSA are clearly not intended to render charter schools public school districts for all 

purposes, nor is it likely charter schools actually desire to be treated as public school 

districts for all purposes. Moreover, these arguments fail to address the underlying 

question addressed above: that is, whether a charter school bears the same characteristics 

as a municipal corporation that would suffice to qualify it as an “other municipal 

corporation” for purposes of section 220(b).

4

Finally, Spiess suggests the public policy demanding full and prompt payment of 

earned wages (see Smith v. Superior Court (2006) 39 Cal.4th 77, 82) weighs against 

finding Gateway to be an “other municipal corporation” exempt from assessment of 

waiting time penalties. Gateway argues the public policy underlying the waiting time 

 

4 For the same reason, we do not address the reasoning of Wells v. One2One Learning 

Foundation (2006) 39 Cal.4th 1164 (nonprofit public benefit corporations operating 

charter schools are “persons” for purposes of the California False Claims Act (Gov. 

Code, § 12650 et seq.) and the unfair competition law (Bus. & Prof. Code, § 17200 et 

seq.)), Knapp v. Palisades Charter High School (2007) 146 Cal.App.4th 708 (nonprofit 

public benefit corporation is not a public entity for purposes of the Government Tort 

Claims Act), Wright v. Compton Unified Sch. Dist. (1975) 46 Cal.App.3d 177 (a public 

school district is a public entity for purposes of the Government Tort Claims Act (Gov. 

Code, § 900 et seq.)), and Caviness v. Horizon Cmty. Learning Ctr., Inc. (9th Cir. 2010) 

590 F.3d 806 (charter school operator not a state actor for purposes of 42 U.S.C. § 1983 

action), cited by the parties. Whether an entity is a “person” subject to the California 

False Claims Act or unfair competition law, or a “public entity” for purposes of the 

Government Tort Claims Act, or a “state actor” for purposes of a civil rights lawsuit, is 

inapposite to the question presented here—whether Gateway, a nonprofit public benefit 

corporation operating a charter school, is an “other municipal corporation” for purposes 

of section 220(b). 
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penalty is inapplicable to it as a nonprofit public benefit corporation because it, contrary 

to “private employers,” is not motivated by financial gain and therefore needs no 

“disincentive . . . to pay final wages late.” (Pineda v. Bank of America, N.A. (2010) 

50 Cal.4th 1389, 1400.) It further claims it should be exempt from the waiting time 

penalty because such a penalty would “reduce the funds available to educate” because it 

is funded (at least in part) by average daily attendance funds provided by the state. Such 

policy arguments are best left to the Legislature to decide. (Cassel v. Superior Court 

(2011) 51 Cal.4th 113, 124 [“Where competing policy concerns are present, it is for the 

Legislature to resolve them.”].) Our role is merely to interpret the statute as written, not 

to establish policy. (Los Angeles County Metropolitan Transportation Authority v. 

Alameda Produce Market, LLC (2011) 52 Cal.4th 1100, 1112-1113.) If the Legislature 

desires to exempt charter schools from the waiting time penalties, it can do so. But it 

does not appear the Legislature so intended, for if it did it would have used clearer 

language than that found in section 220(b) to express such an intent. 

In conclusion, as described above, Gateway does not bear the defining 

characteristics that qualify an entity as an “other municipal corporation” for purposes of 

section 220(b). Accordingly, we conclude that Gateway is not an “other municipal 

corporation” exempt from assessment of waiting time penalties, and we affirm the 

judgment of the trial court. 
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DISPOSITION

The judgment is affirmed. Spiess is awarded her costs on appeal. (Cal. Rules of 

Court, rule 8.278(a)(1), (2).) (CERTIFIED FOR PUBLICATION)

 BUTZ , J.

We concur:

 RAYE , P. J.

 DUARTE , J.