Opinion ID: 2140651
Heading Depth: 3
Heading Rank: 2

Heading: Civil Penalties and Injunctive Relief

Text: We next address the plaintiffs' entitlement to civil penalties and injunctive relief. Farmers argues that civil penalties and injunctive relief may be imposed only by the Commissioner. Alternatively, Farmers argues that such relief is available in civil actions brought by private parties only when the plaintiffs are first awarded compensatory damages. The plaintiffs argue that civil penalties may be imposed whenever a violation of the Act occurs, regardless of whether the employee is entitled to compensatory damages, and civil penalties are payable to individual litigants, not, as the court of appeals concluded, the state.
We first consider the district court's authority to impose civil penalties and injunctive relief. The MFLSA authorizes the Commissioner to enforce the Act. See Minn.Stat. § 177.27 (giving the Commissioner the power to inspect businesses; issue compliance orders; bring a civil action; issue cease-and-desist orders; order back pay, gratuities, and compensatory and liquidated damages; and assess civil penalties). Subdivision 7 of section 177.27 delineates the remedies the Commissioner can impose when an employer is found to have violated the Act: If an employer is found by the commissioner to have violated a section identified in subdivision 4, or any rule adopted under section 177.28, and the commissioner issues an order to comply, the commissioner shall order the employer to cease and desist from engaging in the violative practice and to take such affirmative steps that in the judgment of the commissioner will effectuate the purposes of the section or rule violated. The commissioner shall order the employer to pay to the aggrieved parties back pay, gratuities, and compensatory damages, less any amount actually paid to the employee by the employer, and for an additional equal amount as liquidated damages. Any employer who is found by the commissioner to have repeatedly or willfully violated a section or sections identified in subdivision 4 shall be subject to a civil penalty of up to $1,000 for each violation for each employee. The MFLSA, however, does not vest the power to enforce the Act solely in the Commissioner. The Act allows employees to bring civil actions to enforce the MFLSA. Under subdivision 8 of section 177.27, an employee may seek wages, gratuities, and overtime compensation, as well as liquidated damages and other appropriate relief provided by subdivision 7 and otherwise provided by law. Thus, under the plain language of subdivision 8, the relief provided by subdivision 7 is available to a private party in a civil action and includes civil penalties, as well as injunctive relief. Subdivision 7 specifically provides for civil penalties for repeated or willful violations of the MFLSA. In addition, subdivision 7 authorizes the Commissioner to order employers to cease and desist from engaging in violative practices and to take affirmative steps to comply with the Act. The legislature intended that the district court's powers mirror those of the Commissioner, and district court injunctions are the functional equivalent of administrative cease-and-desist orders. See Bernard Schwartz, Administrative Law § 2.26 (3d ed. 1991). Accordingly, we conclude that employees may seek injunctive relief and civil penalties in actions brought in district court. We note that this conclusion does not mean that private parties have all the powers of the Commissioner; rather, the statute grants private parties the right to seek the remedies available to the Commissioner under subdivision 7.
Even if the district court is authorized to award civil penalties and injunctive relief, Farmers argues that these remedies are available in civil actions only when the plaintiffs are entitled to compensatory damages. Subdivision 8 describes the remedies available in civil actions by private parties: An employer who pays an employee less than the wages and overtime compensation to which the employee is entitled under sections 177.21 to 177.35 is liable to the employee for the full amount of the wages, gratuities, and overtime compensation, less any amount the employer is able to establish was actually paid to the employee and for an additional equal amount as liquidated damages. In addition, in an action under this subdivision the employee may seek damages and other appropriate relief provided by subdivision 7 and otherwise provided by law. Minn.Stat. § 177.27, subd. 8 (emphasis added). Farmers argues that the words [i]n addition in the second sentence indicate that there must be unpaid wages or overtime compensation before an employee may seek other appropriate relief provided by subdivision 7. The court of appeals rejected this argument, concluding that the plain meaning of the `in addition' language    is not limiting, but rather it is granting. Milner, 725 N.W.2d at 143. We similarly conclude that the statute is clear and unambiguous, and the plain meaning of the words in addition does not limit the circumstances in which an employee can seek the remedies of subdivision 7. Moreover, this conclusion is appropriate considering that an employee may bring a private suit for the violation of any section of the MFLSA, including a failure to maintain records. Minn.Stat. § 177.27, subd. 8. Although such a violation may not result in compensatory damages, other relief, such as civil penalties or injunctions, may be appropriate.
The final issue of statutory interpretation we address is determining to whom civil penalties are payable. The plaintiffs argue that the court of appeals erred in concluding that civil penalties are payable to the state, not to individual litigants. Farmers argues that the court of appeals correctly concluded that civil penalties are payable to the state. The MFLSA does not specify to whom civil penalties are to be paid, either when assessed by the Commissioner or by a district court. In the absence of any plain language in the MFLSA dictating to whom civil penalties are payable, we look to other related statutes for guidance. Statutes should be read as a whole with other statutes that address the same subject. Harris v. County of Hennepin, 679 N.W.2d 728, 732 (Minn.2004); see Minn. Stat. § 645.16(5) (2006) (stating that when the words of a statute are not explicit, the intention of the legislature may be ascertained by considering, among other matters, other laws upon the same or similar subjects). In addition, we presume that the legislature intends to favor the public interest as against any private interest. Minn.Stat. § 645.17 (2006). In this case, we look to the Minnesota Payment of Wages Act (PWA), Minn. Stat. §§ 181.01-.171 (2006). The PWA is a related act that covers employment and wages, is enforced by the Commissioner of Labor and Industry, and is referenced in the MFLSA. See Minn.Stat. § 177.27, subd. 4. While the MFLSA addresses minimum wage and hour standards, the PWA addresses how often wages must be paid and establishes penalties for wages that are paid late. See Minn.Stat. §§ 181.10-.15. The PWA also has similarities to the MFLSA in that its provisions can be enforced by either the Commissioner or by an employee in a private action. See Minn.Stat. §§ 181.101, 181.13, 181.171. Thus, together, these acts provide a comprehensive statutory scheme for wages and payment in Minnesota and should be interpreted in light of each other. We decline to look to the federal FLSA, as it is structured differently from the MFLSA. We also decline to look to the Minnesota Human Rights Act, as suggested by the court of appeals, Milner, 725 N.W.2d at 145, because that act is broader than the MFLSA and does not pertain exclusively to employment. See Minn.Stat. §§ 363A.01-.41 (2006). [8] Under the PWA, penalties are paid to the individual employee, even when the Commissioner collects the money. See, e.g., Minn.Stat. § 181.101 (Money collected by the commissioner must be paid to the employee concerned.). The PWA also specifically provides that an employer found to have violated the PWA is liable to the aggrieved party for civil penalties. Minn.Stat. § 181.171, subd. 1. If the legislature had intended the same result under the MFLSA, the legislature would have used similar language and explicitly provided for civil penalties to be paid to the individual employees. For example, in enforcement actions brought by the Commissioner under the MFLSA, the legislature specifically provides for the employer to pay to the aggrieved parties back pay and compensatory damages, as well as liquidated damages. Minn.Stat. § 177.27, subd. 7. The legislature did not include civil penalties within this particular provision. See id. (stating that an employer found to have repeatedly or willfully violated the MFLSA shall be subject to a civil penalty). And the legislature did not specify a different result for civil actions brought by employees. See Id., subd. 8. Therefore, we hold that civil penalties are payable to the state under the MFLSA, regardless of whether the penalties are assessed by the Commissioner or the district court.