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Labor Commissioner’s Deposition Subpoena Was Properly Snubbed, C.A. Declares
By a MetNews Staff Writer
A trial judge had no power to order a business that is facing an informal adjudicatory hearing before the Labor Commission as to possible violations of wage and hour laws to comply with deposition subpoena issued by the labor commissioner, the Third District Court of Appeal declared yesterday.
Justice Stacy Boulware Eurie wrote:
“California’s overall statutory scheme regarding administrative proceedings provides for only limited discovery in connection with informal agency adjudications. So while Commissioner has broad power to issue investigative subpoenas to a company for suspected violations of the law, that broad power ends upon initiation of adjudicative proceedings against the company.”
The subpoena for a deposition of the “person most knowledgeable” was issued to Nor-Cal Venture Group, Inc. which operates fast food restaurants in the Sacramento area. It is alleged in a citation to have misclassified about 40 of its restaurant managers.
More than $900,000 in back pay and penalties is being sought.
Sacramento Superior Court Judge David I. Brown ordered that the subpoena be honored. Eurie’s opinion reverses the order.
She noted:
Our holding does not, as Commissioner suggests, mean ‘investigation before the issuance of a citation, and no investigation thereafter.’ Our holding is only that Commissioner’s deposition subpoena issued to Nor-Cal, a party opponent in a pending informal hearing, was unauthorized as a statutory matter.”
The case is Garcia-Brower v. Nor-Cal Venture Group, Inc., C089148.
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