Opinion ID: 2450542
Heading Depth: 1
Heading Rank: 7

Heading: KWPA provides an inadequate substitute remedy

Text: In addition to finding Campbell had not stated a claim upon which relief may be granted, the district court sua sponte held that the remedies available for violating the KWPA provided an adequate substitute remedy for Campbell's common-law retaliatory discharge claim and dismissed the case on that alternative basis. Campbell disagrees, arguing the KWPA can only address his wage claim and noting the common-law remedies traditionally available for a wrongful termination claim, including punitive damages, are not permitted in the administrative action before the Secretary. Under the alternative remedies doctrine, a state or federal statute could be substituted for a state retaliation claimif the substituted statute provides an adequate alternative remedy. Hysten, 277 Kan. at 561, 108 P.3d 437; Flenker, 266 Kan. at 202-03, 967 P.2d 295. Therefore, the issue is whether the statutory remedy under the KWPA is adequate and thereby precludes the common-law remedy sought by Campbell. In Hysten, when deciding whether FELA provided an adequate substitute remedy for the plaintiff's retaliatory discharge claim, this court examined whether the FELA and common-law actions were subject to the same procedures, allowed similar levels of claimant control, and made available the same damages. 277 Kan. at 562-64, 108 P.3d 437. We stated: We also do not regard the unavailability of compensatory damages for pain and suffering and punitive damages as trivial. As we recognized in Coleman, a retaliatory discharge action, such as the one Hysten brings here, is designed to redress a violation of state public policy. [Citation omitted.] The availability of compensatory damages beyond those designed to eliminate purely economic loss and particularly the availability of punitive damages can deter such violations. As Judge Posner said: `It is a grave matter for an employer to fire an employee for exercising a legal right.' [Citation omitted.] Deterrence of such conduct is essential. 277 Kan. at 563, 108 P.3d 437. Similarly, the disparate processes and dissimilar remedies make it untenable to find the KWPA claim is an adequate substitute remedy for Campbell's common-law retaliatory discharge claim. First, as discussed above, the district court's holding is problematic because the wage claim redresses a different harm. The KWPA action and its statutory remedies relate to Campbell's claim that Husky Hogs did not pay him all earned wages. But the retaliatory discharge claim would redress the employment termination. Since these causes do not address the same wrong, it is difficult to conclude the legislature supplanted the retaliatory discharge claim with KWPA. But just as importantly, Campbell does not receive the same process under his KWPA claim as he would in litigating the wrongful termination claim. KWPA permits the Secretary of Labor to hold hearings and investigate alleged violations of the act. K.S.A. 44-322; K.S.A. 2010 Supp. 44-322a. The Secretary or presiding officer determines whether the unpaid wage claim is valid, how much the employer owes in unpaid wages, assesses applicable damages, and may seek a contempt order in district court if the employer refuses to obey the Secretary's order. K.S.A. 44-322; K.S.A. 2010 Supp. 44-322a. But neither party in an administrative action has a right to a jury trial and the Secretary has considerable statutory discretion both to determine whether a dispute exists and to control the investigation of that dispute. See K.S.A. 44-322; K.S.A. 2010 Supp. 44-322a. Regarding damages under the KWPA, the Secretary has authority to award the unpaid wages and damages for willful nonpayment, but they are limited to 1 percent of the unpaid wages for each day payment is not submitted up to 100 percent of the unpaid wages. K.S.A.44-315. While these statutory remedies may adequately compensate Campbell for his unpaid wage claim, it is difficult to see how they adequately compensate him for wrongful termination or provide a better deterrent for the retaliatory misconduct alleged. Retaliatory discharge is a tort. A tort is a breach of duty imposed by law. Under common law, Campbell may seek future lost wages, any other actual damages, and applicable remedies for pain and suffering, as well as punitive damages. See Hysten, 277 Kan. at 563, 108 P.3d 437. This court has previously criticized the allocation of a common-law action to an administrative agency. See Hysten, 277 Kan. at 562, 108 P.3d 437; Flenker, 266 Kan. at 208-10, 967 P.2d 295; Coleman, 242 Kan. at 813-14, 752 P.2d 645. In this case, we hold the KWPA is not an adequate substitute remedy for Campbell's common-law retaliatory discharge claim. The district court erred in so finding. Reversed and remanded for further proceedings.