Opinion ID: 6107706
Heading Depth: 3
Heading Rank: 1

Heading: Statutory Procedures Available to Wage Claimants

Text: The Labor Code provides an administrative procedure for recovery of unpaid wages. When an employer does not pay wages as required, the employee may either: (1) file a civil action in court, or (2) file a wage claim with the Labor Commissioner under sections 98 to 98.8. The administrative option was added in 1976 (see Stats. 1976, ch. 1190, §§ 4-11, pp. 5368-5371) and is commonly known as a Berman hearing. 6 If an employee files an administrative complaint, the Labor Commissioner may either accept the matter and conduct a Berman hearing ( § 98, subd. (a) ); prosecute a civil action on the employee's behalf (§ 98.3); or take no further action ... on the complaint ( § 98, subd. (a) ). The commissioner's staff may try to settle the complaint before holding a hearing or filing suit. (Dept. of Industrial Relations, Div. of Labor Stds. Enforcement (DLSE), Policies and Procedures for Wage Claim Processing (2012 rev.) p. 2.) Subject to extensions of time, Berman hearings must generally be held within 90 days after a matter is accepted. ( § 98, subd. (a).) A Berman hearing is conducted by a deputy commissioner, who may issue subpoenas. ( Cal. Code Regs., tit. 8, §§ 13502, 13506.) The procedure is designed to provide a speedy, informal, and affordable method of resolving wage claims. (  Cuadra v. Millan (1998) 17 Cal.4th 855 , 858, 72 Cal.Rptr.2d 687 , 952 P.2d 704 ( Cuadra ).) Pleadings are limited to a complaint and answer. There is no discovery process. ( § 98, subd. (d).) Technical rules of evidence do not apply, and all relevant evidence is admitted if it is the sort of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs. ( Cal. Code Regs., tit. 8, § 13502.) The hearing officer may assist the parties with cross-examination and explain issues and terms involved. (DLSE, Policies and Procedures for Wage Claim Processing, supra , at p. 3.) If necessary, a translator will be provided. ( Ibid .; see § 105, subd. (b).) The claim must be decided within 15 days of the hearing. (§ 98.1, subd. (a).) Either party may appeal the decision to the superior court, which reviews the claim de novo. ( § 98.2, subd. (a).) An employer who appeals must post an undertaking in the amount of the award. ( Id ., subd. (b).) On appeal, the Labor Commissioner may represent claimants financially unable to afford counsel and must represent any indigent claimant attempting to uphold the award while objecting to no part of it. (§ 98.4.) An unappealed decision is a final judgment, enforceable immediately. ( § 98.2, subds. (d), (e).) The commissioner is responsible for enforcement ( id ., subd. (i)), which is entitled to court priority ( id. , subd. (e)). If an employer's appeal fails, the court determines costs and reasonable attorney  fees incurred by the successful employee and orders payment by the losing appellant. ( § 98.2, subd. (c).) Claimants represented by the commissioner may still recover fees, consistent with the statute's goal of discouraging unmeritorious appeals. ( Lolley v. Campbell (2002) 28 Cal.4th 367 , 376-378, 121 Cal.Rptr.2d 571 , 48 P.3d 1128 ( Lolley ).) An employee is successful if the court awards an amount greater than zero. ( § 98.2, subd. (c).) The statute provides a one-way fee-shifting scheme: An unsuccessful employer must pay attorney fees but a successful one may not recover them. (See Arias v. Kardoulias (2012) 207 Cal.App.4th 1429 , 1435, 144 Cal.Rptr.3d 599 .) This fee scheme differs from wage claims brought in superior court, where the prevailing party may obtain attorney fees. ( § 218.5, subd. (a).) 7  The Berman process is optional for both claimants and the Labor Commissioner. Aggrieved employees may take their wage claims directly to superior court. (See § 218.) Likewise, the commissioner may decline to act on a filed  complaint. (See § 98, subd. (a).) However, Berman procedures can significantly reduce the costs and risks of pursuing a wage claim. They provide an accessible, informal, and affordable avenue for employees to seek resolution, with assistance available if necessary. ( Sonic II , supra , 57 Cal.4th at p. 1129, 163 Cal.Rptr.3d 269 , 311 P.3d 184 .) They discourage unmeritorious appeals through a bond requirement and a fee-shifting scheme that favors employees. (See id . at p. 1130, 163 Cal.Rptr.3d 269 , 311 P.3d 184 .) They permit the commissioner to represent claimants on appeal and facilitate award collection. (See ibid . )