Opinions
Filed 4/1/25; Opinion on remand from Supreme Court
CERTIFIED FOR PUBLICATION
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
SECOND APPELLATE DISTRICT
DIVISION ONE
PATRICK KRUG, B320588
Plaintiff and Appellant, (Los Angeles County
Super. Ct. No. 21STCV14538)
v.
BOARD OF TRUSTEES OF THE
CALIFORNIA STATE UNIVERSITY,
Defendant and Respondent.
APPEAL from a judgment of the Superior Court of Los
Angeles County, Carolyn B. Kuhl, Judge. Affirmed.
Stiller Law Firm, Ari. J. Stiller; Hennig Kramer Ruiz &
Singh, Kramer Brown Hui, Jennifer Kramer, Shoshee Hui; Gunn
Coble, Beth Gunn, Catherine J. Coble for Plaintiff and Appellant.
Call & Jensen, Julie R. Trotter, Jacqueline Beaumont,
Melinda Evans for Defendant and Respondent.
___________________________________
When the COVID-19 pandemic struck, the Board of
Trustees of the California State University (CSU) directed that
instruction be provided remotely. To comply with this directive,
Patrick Krug, a biology professor at California State University
Los Angeles, incurred expenses for a computer and other
equipment and necessities which CSU declined to reimburse.
Krug sued CSU on behalf of himself and similarly situated
faculty, alleging Labor Code section 2802 obligated CSU to
reimburse its employees for necessary work-related expenses.
CSU demurred, arguing that as a department of the state it
enjoyed broad exemption from Labor Code provisions that
infringe on its sovereign powers. Krug appealed from a judgment
of dismissal entered after the trial court sustained CSU’s
demurrer without leave to amend.
We affirmed the judgment, holding that absent express
words or positive indicia to the contrary, Labor Code section 2802
did not obligate CSU, a public institution, to reimburse
employees for work-related expenses because CSU did not fall
within the general words of the section, and subjecting CSU to
the section in this case would impair its sovereignty by infringing
on the broad discretion it enjoys under the Education Code to set
its own equipment reimbursement policies.
Our Supreme Court granted review pending its decision in
Stone v. Alameda Health System (2024) 16 Cal.5th 1040 (Stone),
after which it remanded the matter to us for reconsideration in
light of its holding in that case.
After reconsideration in light of Stone, we again affirm the
judgment.
2
BACKGROUND
The CSU system is a “state agency . . . in the field of public
higher education which is charged with the management,
administration, and control of the State College System of
California.” (Cal. Const., art. XX, § 23; see Ed. Code, §§ 66600
[creating CSU’s board of trustees]; 89000 et seq. [governing
CSU].) The Legislature has conferred on CSU a variety of
powers, including the power to “prescribe policies and procedures
for the acquisition of services, facilities, materials, goods,
supplies, or equipment.” (Ed. Code, § 89036, subd. (a)(2).)
In March 2020, CSU directed its teachers to begin teaching
classes remotely. Krug did so but was denied access to his
workplace office to retrieve his CSU-provided computer and
printer. He absorbed the cost for replacing these items himself,
then asked for reimbursement, which the school denied. CSU
1
took the position that Labor Code section 2802, subdivision (a),
which obligates an employer to “indemnify [an] employee for all
necessary expenditures . . . incurred . . . in direct consequence of
the discharge of his or her duties,” did not apply to the school
because such application would infringe on its sovereign powers
as a department of the state.
Krug filed this class action complaint against CSU, alleging
a single claim for reimbursement of home-office expenses for
2
himself and other CSU faculty employees under section 2802.
1
Undesignated statutory references are to the Labor Code.
2
Before filing the lawsuit, Krug obtained a letter from the
Department of Industrial Relations (aka Division of Labor
Standards Enforcement; DLSE) stating that the DLSE
“disagree[d] . . . that California Labor Code Section 2802 does not
apply to employees of the California State Universities.”
3
Krug alleged he incurred necessary business expenses for
electricity, postage, internet service charges, use of personal
phones for work-related purposes, office supplies, chairs,
computers, printers, ink and toner, and computer monitors
required to perform his work.
He later amended the complaint to add a claim under the
Private Attorneys General Act (PAGA) stemming from the same
reimbursement denial but now concedes that claim is not viable.
CSU demurred to the Labor Code claim on the ground that
as a department of the state it was not subject to suit for the
Labor Code violation asserted, and to the PAGA claim on the
ground that an employee may seek PAGA penalties against a
public entity only if the underlying statute provides for civil
penalties, which section 2802 did not. The trial court sustained
CSU’s demurrer without leave to amend, reasoning that as a
governmental agency, CSU was exempt from section 2802
because that section did not expressly apply to public employers.
Further, because there was no Labor Code violation, the trial
court found the PAGA claim could not stand.
Krug appeals from the resulting judgment of dismissal.
DISCUSSION
Krug contends that the language, context, and history of
section 2802 demonstrate a legislative intent to require public
employers to reimburse employees for reasonable work-related
expenses.
4
A. Analytical Framework
Because this appeal is taken from a dismissal on demurrer,
and involves questions of statutory interpretation, our review is
de novo. (Stone, supra, 16 Cal.5th at p. 1052.)
Our fundamental task in interpreting a statute “ ‘is to
ascertain the Legislature’s intent and effectuate the law’s
purpose, giving the statutory language its plain and
commonsense meaning. [Citation.] We examine that language in
the context of the entire statutory framework to discern its scope
and purpose and to harmonize the various parts of the
enactment.’ [Citation.] If the language is clear, ‘ “its plain
meaning controls. If, however, the language supports more than
one reasonable construction, then we may look to extrinsic aids,
including the ostensible objects to be achieved and the legislative
history.” ’ ” (Stone, supra, 16 Cal.5th at p. 1052; see also Wells v.
One2One Learning Foundation (2006) 39 Cal.4th 1164, 1190
(Wells) [“The statutory language itself is the most reliable
indicator, so we start with the statute’s words, 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”].)
“ ‘ “[I]n light of the remedial nature of the legislative
enactments authorizing the regulation of wages, hours and
working conditions for the protection and benefit of employees,
the statutory provisions are to be liberally construed with an eye
5
to promoting such protection.” ’ ” (McLean v. State of California
(2016) 1 Cal.5th 615, 622 (McLean).)
Stone involved wage-and-hour claims by healthcare
workers against a public hospital. (Stone, supra, 16 Cal.5th at p.
1050.) “The operative complaint alleged that [the hospital]
frequently denied or discouraged the taking of meal and rest
breaks and ‘automatically deducted 1/2 hour from each workday’
even when meal periods were not taken.” (Ibid.) The employees’
claims fell under Industrial Welfare Commission (IWC) Wage
Order No. 5-2001 (Cal. Code Regs., tit. 8, § 11050; hereafter Wage
Order No. 5), which regulates working conditions of hospital
employees. (Stone, at pp. 1050-1051.) The issue was whether the
public hospital was an “employer” for purposes of the meal and
rest break requirements set forth in the Labor Code and Wage
Order No. 5.
The Stone Court examined the language, structure, and
history of the statutes and wage order at issue to determine
whether the Legislature intended to impose their requirements
on public employers. Using this framework, the Court addressed
the text and history of relevant Labor Code and wage order
provisions to conclude that the hospital was exempt from the
employees’ claims. First, it noted that the Labor Code’s meal and
rest period requirements, sections 226.7 and 512, are subject to
the regulations of Wage Order No. 5, which restricts application
of sections 226.7 and 512 to “person[s] as defined in Section 18 of
the Labor Code.” (Stone, supra, 16 Cal.5th at p. 1055.) Turning
to section 18, the Court found that this provision describes a
“person” with words “ ‘most commonly associated with private
individuals and entities’ as opposed to public or governmental
agencies.” (Stone, at p. 1055.) Thus, section 18 was not silent
6
about whether government employers are covered; “its language
affirmatively indicates that they are not.” (Stone, at p. 1056.)
Wage Order No. 5 also states that “unless specifically
noted otherwise, ‘the provisions of this order shall not apply to
any employees directly employed by the State or any political
subdivision thereof, including any city, county, or special
district.’ ” (Stone, supra, 16 Cal.5th at p. 1057.) “The plain
language of the governing wage order thus expressly excludes
public employers from most of the wage and hour obligations it
places on private employers, including meal and rest break
obligations.” (Ibid.)
Having concluded that the relevant text expressly excludes
government employers from meal and rest break requirements,
the Court then confirmed that Wage Order No. 5’s history is in
accord: Historically, government entities were exempt from all
Wage Order provisions, and when the Wage Orders were
amended in 2001 to specifically apply certain provisions to
government employees, government exemption from the meal
and rest period provisions in Wage Order No. 5 remained
unaltered. (Stone, supra, 16 Cal.5th at pp. 1057-1058.)
The Stone Court rejected the employees’ argument that the
“sovereign powers principle,” by which government entities are
presumed not to be included in generally worded statutes only if
their inclusion would result in an infringement upon sovereign
governmental powers, did not apply because the hospital lacked
sovereignty. (Stone, supra, 16 Cal.5th at pp. 1067-1068.) “This
analysis puts the cart before the horse,” the Court stated, because
the sovereign powers principle only comes into play when a
statute’s text and history are unclear. (Id. at p. 1067.) The Wage
Order’s exemption of public entities from meal and rest period
7
requirements was thus dispositive without addressing whether
the application of those requirements would infringe any
sovereign powers possessed by the hospital. (Ibid.)
B. Public Entity Liability for Expense Reimbursement
We follow Stone’s analytical framework to determine
whether the Legislature intended to exclude public entity
employers from the employment expense reimbursement
obligations at issue here. We thus “examine ‘the language,
structure, and history of the particular statute[s] before us’ to
determine whether the Legislature intended to impose their
requirements on public employers.” (Stone, supra, 16 Cal.5th at
p. 1054.) If these provide no positive indicia of a legislative
intent, we resort to interpretive maxims to determine whether
application of the section would invade CSU’s sovereign powers.
(Ibid. [“Although interpretive maxims may aid in that analysis,
the fundamental question is always one of legislative intent”].)
1. Statutory Language
Subdivision (a) of section 2802 provides in pertinent part:
“An employer shall indemnify his or her employee for all
necessary expenditures or losses incurred by the employee in
direct consequence of the discharge of his or her duties, or of his
or her obedience to the directions of the employer . . . .”
“The Labor Code provides no generally applicable definition
of the term” “employer.” (McLean, supra, 1 Cal.5th at p. 627; see
Stone, supra, 16 Cal.5th at p. 1054 [“The Labor Code does not
define the term ‘employer’ ”].)
Krug argues that because the reference to “employer” in
section 2802 is unqualified, the statute by its plain language
encompasses “all employers.” The statute “cannot be read to
8
exclude public employers,” he argues, because there is no express
exemption for public employers and “no indication that the
Legislature intended such a specialized meaning.”
A statutory provision is ambiguous if it is susceptible of two
reasonable interpretations. (See People v. Raybon (2021) 11
Cal.5th 1056, 1065.) The unqualified term “employer” in the
Labor Code may reasonably apply only to private employers even
absent an express exemption for public employers. (See Johnson
v. Arvin-Edison Water Storage Dist. (2009) 174 Cal.App.4th 729,
737 [“in the context of wage and hour provisions, the Legislature
expressly refers to public entities when it intends them to be
included”]; Stone, supra, 16 Cal.5th at p. 1055 [“the Legislature is
capable of bringing government entities within the scope of
specific legislation when it intends to do so”].)
Here, both parties have presented reasonable
interpretations of section 2802: On the one hand, as CSU would
have it, if the Legislature had wanted section 2802 to apply to
both public and private entities, it could have said so; and on the
other hand, as Krug would have it, if the Legislature intended
3
the statute to apply only to private entities, it could have said so.
3
Krug relies on a 2001 DLSE opinion letter for the
proposition that the DLSE has applied “general Labor Code
provisions” and “a general minimum wage provision” to CSU
“because the school is not subject to any statutory exception.”
The DLSE opinion concerned a minimum wage provision
originating not from the Labor Code but from Wage Order No.
MW-2001. (Cal. Code Regs., tit. 8, § 11000.) Labor Code section
1197 provides that the minimum wage is to be fixed by the IWC,
“and the payment of a lower wage than the minimum so fixed is
unlawful.” Pursuant to this authorization, the IWC issued Wage
Order No. MW-98, which exempted employees of state and local
governments. In 2001, the IWC issued Wage Order No. MW-
9
However, our analysis cannot end where Krug suggests it should
end. As Stone instructs, Krug’s end point is only the beginning.
Following our high court’s guidance in Stone, we thus examine
the statutory language not in isolation but “in the context of the
entire statutory framework to discern its scope and purpose.”
(Stone, supra, 16 Cal.5th at p. 1052.)
2. Statutory Framework
In construing statutory language we look not only to the
statute’s plain meaning but also to the statutory framework, and
we must interpret the words of the statutes ‘in the sense in which
they would have been understood at the time of the enactment.”
(People v. Cruz (1996) 13 Cal.4th 764, 775.)
2001, which raised the minimum wage and made its provisions
applicable to “ ‘employees directly employed by the State or any
political subdivision thereof, including any city, county, or special
district.’ ” (Marquez v. City of Long Beach (2019) 32 Cal.App.5th
552, 561 (Marquez).) On April 25, 2001, in response to a question
about applicability of the minimum wage to CSU, the DLSE
stated that because no statute “exempted employees from the
state minimum wage,” it is “the Labor Commissioner’s policy to
enforce the state minimum wage . . . on behalf of [public]
employees.” (Dept. Industrial Relations, DLSE Opn. Letter No.
2001.04.25 (Apr. 25, 2001) p. 3.)
We do not take the 2001 DLSE opinion specifically
addressing the application of the minimum wage provision to
CSU to equate to a broad interpretation that Labor Code
provisions apply to public entities unless those entities are
specifically exempted. If that is the DLSE’s opinion, we
respectfully disagree. (See Brinker Restaurant Corp. v. Superior
Court (2012) 53 Cal.4th 1004, 1029, fn. 11 (Brinker) [DLSE
opinion letters entitled to respect but not to deference].)
10
a. Article 2: Sections 2806, 2807, 2808, 2808.2, 2809
The Labor Code’s employment expense reimbursement
obligation is found in division 3, chapter 2, article 2 of that code,
titled “Obligation of Employers” (Article 2).
The statutory silence of section 2802 stands in marked
contrast to neighboring provisions in Article 2 that expressly
impose obligations on both private and public employers. For
example, in 1979, the Legislature added section 2806, which
provides that no employer, “whether private or public,” shall
discontinue medical insurance coverage without notice. (§ 2806,
subd. (a), added Stats. 1979, ch 222, § 1.) In 1992, the
Legislature added section 2807, which provides that all
employers, “whether private or public,” must notify former
employees about the availability of continued medical insurance
coverage. (§ 2807, subd. (a), added Stats. 1992, ch 722, § 9 (SB
485).) In 1993, the Legislature added section 2808, which
obligates all employers, “whether public or private,” to notify
employees about certain health insurance benefits. (§ 2808,
added Stats. 1993, ch. 1210, § 12.) In 1995, the Legislature
added subdivision (b) to section 2808.2, which obligates an
employer that provides group medical insurance to its employees
to notify its employees of the availability of conversion coverage.
Subdivision (b) states that any employer, “whether private or
public,” must notify its former employees about benefits available
under the Consolidated Omnibus Budget Reconciliation Act of
1985 (COBRA). (§ 2800.2, subd. (b), amended Stats. 1995, ch.
489, § 6 (SB 761).) In 1996, the Legislature added section 2809,
which obligates any employer, “whether private or public,” that
offers employees a deferred compensation plan to notify
11
employees about the financial risks accompanying participation
in the plan. (§ 2809, subd. (a), added Stats. 1996, ch. 1160, § 1.)
The specific reference to public employers in several nearby
statutes in Article 2, but not in section 2802, weighs heavily
against a conclusion that the Legislature intended to expose
public employers to employer reimbursement liability. (See
Wells, supra, 39 Cal.4th at p. 1190 [“specific enumeration of state
and local governmental entities in one context, but not in the
other, weighs heavily against a conclusion that the Legislature
intended to” expose public school districts to California False
Claims Act liability].) This legislative silence is especially voluble
given that the Legislature added or amended the companion
provisions long after section 2802 was enacted, yet left section
2802 alone. That the Legislature added or amended several
provisions in Article 2 expressly to apply to public employers
while leaving section 2802 silent on that front strongly suggests
it intended not to apply the reimbursement set forth in section
2802 to public employers.
In another example from Article 2, Labor Code section
2802.1 provides that some expenses reimbursable under section
2802 must be reimbursed by public as well as private hospitals.
Labor Code section 2802.1 first prescribes that the cost of any
employer-required training for nursing employees and applicants
is subject to the reimbursement requirement of section 2802,
then states that “[t]his section,” i.e., section 2802.1, and by
extension section 2802 in this limited context, applies only to
employees of general acute care hospitals as defined in
subdivision (a) of Health and Safety Code section 1250. (Lab.
Code, § 2802.1, subd. (c), added Stats. 2020, ch. 351, § 2 (AB
2588).) Subdivision (a) of Health and Safety Code section 1250,
12
in turn, specifically references two particular state-run hospitals.
That the Legislature specified that certain public hospital
employers are subject to the reimbursement requirements of
Labor Code section 2802 in limited contexts strongly suggests the
hospitals are not subject to section 2802 in general.
Krug argues that subdivision (e) of section 2801.2, which
states the section “is declaratory of and clarifies existing law with
respect to employer-required training for employees,” reflects the
Legislature’s understanding that section 2802 covers public
workers. This overstates the reach of subdivision (e). At most,
the subdivision reflects the Legislature’s understanding that
section 2802 applies to employer-required training in the context
of general acute care hospitals. The subdivision cannot shed light
on public entity obligations as to other categories of
reimbursement. As with the other provisions in Article 2
discussed above, the Legislature could have amended section
2802 at the same time it enacted section 2802.1 but did not,
which further suggests it intended not to prescribe
reimbursement obligations for public employers broader than
those set forth in section 2802.1.
b. Other Employer Obligations
Other Labor Code provisions governing employer
obligations also expressly state whether they apply to public
employers. For example, section 555 declares that section 552
(which provides, “No employer of labor shall cause his employees
to work more than six days in seven”) is “applicable to cities
which are cities and counties and to the officers and employees
thereof.” (§ 555.) Similarly, the statute mandating paid sick
leave defines “employer” for its purposes as “any person
employing another under any appointment or contract of hire and
13
includes the state, political subdivisions of the state, and
municipalities.” (§ 233, subd. (b)(1); see § 245.5, subd. (b)(1).)
Likewise, the minimum wage law states, “For purposes of this
subdivision, ‘employer’ includes the state, political subdivisions of
the state, and municipalities.” (§ 1182.12, subd. (b)(3).) This
suggests that when the Legislature intended an obligation to
apply to a public employer, it did so expressly.
c. 1937 Legislative Session
In an example outside the context of employer obligations,
the workers’ compensation law, which was enacted in 1937 as
part of the same legislation as section 2802, specifies that the
term “employer” includes “[t]he State and every State agency”
and “[e]ach county, city, district, and all public and quasi public
corporations and public agencies therein.” (§ 3300, subds. (a)-(b);
Stats. 1937, ch. 90, § 3300, p. 266; id., § 2802, p. 258.) That the
same legislative session which applied the workers’ compensation
scheme to public employers declined to do so in section 2802
strongly suggests the Legislature intended the latter provision to
apply only to private entities.
Krug observes that the 1937 legislative session also
produced section 18, which provides, “ ‘Person’ means any person,
association, organization, partnership, business trust, limited
liability company, or corporation.” Characterizing this as a
narrow definition, Krug argues the Legislature in 1937 “knew
how to impose narrower definitions when it intended,” which
implies its failure to do so with respect to “employer” in section
2802 evinces an intent to apply that section broadly, i.e., to public
as well as private entities. We disagree. To determine whether
“employer” applies to public as well as private entities in section
2802, we draw inferences only from legislative action that
14
distinguishes between those two concepts, not action which
defines other terms. How the Legislature chose to define
“person” in section 18 says nothing about its failure to specify
whether “employer” in section 2802 includes public entities.
Stone relied heavily on the definition of “person” in section
18 to determine whether a wage order wage-and-hour provision
in Wage Order No. 5 applied to public employers. (See Brinker,
supra, 53 Cal.4th at p. 1026 [“[W]age and hour claims are . . .
governed by two complementary and occasionally overlapping
sources of authority: the provisions of the Labor Code, enacted by
the Legislature, and a series of 18 wage orders, adopted by the
IWC”].) But that was not because the Legislature intended the
term “person” in section 18 to define the term “employer”
elsewhere in the Labor Code. As our Supreme Court has
observed, “[t]he Labor Code provides no generally applicable
definition of the term.” (McLean, supra, 1 Cal.5th at p. 627; see
Stone, supra, 16 Cal.5th at p. 1054.) After concluding there was
no applicable Labor Code definition of “employer,” the Stone
Court turned to Wage Order No. 5 for its definition because the
statutes at issue in Stone are specifically governed by wage
orders. Wage Order No. 5 stated: “ ‘ “Employer” means any
person as defined in Section 18 of the Labor Code, who directly or
indirectly, or through an agent or any other person, employs or
exercises control over the wages, hours, or working conditions of
any person.’ (Wage Order No. 5, subd. 2(H).)” (Stone, at pp.
1054-1055.) Thus, the Court held section 18 helped define
“employer” only because the IWC prescribed that it do so for
purposes of Wage Order No. 5, not because the Legislature
prescribed that it do so for the Labor Code generally. (See
Gerard v. Orange Coast Memorial Medical Center (2018) 6
15
Cal.5th 443, 448 [“ ‘To the extent a wage order and a statute
overlap, we will seek to harmonize them, as we would with any
two statutes.’ [Citation.] But because the Legislature is the
source of the IWC’s authority, a provision of the Labor Code will
prevail over a wage order if there is a conflict”].) Because no
wage order applies here, we have no cause to rely on the term
“person” as defined in section 18 to define “employer” in section
2802.
d. Contrary Inference
It is true that other Labor Code provisions, relating to
payment of wages, specifically exclude some government
employers from their terms. For example, subdivision (a) of
section 220 provides that “[s]ections 201.3 [pertaining to
temporary service employees], 201.5 [employees fired from
production of motion pictures], 201.6 [print shoot employees],
201.7 [oil drilling employees], 201.8 [events employees], 203.1
[payment by check which is refused], 203.5 [penalty under bond],
204 [wages payable semimonthly], 204a [unified payment from
simultaneous employers], 204b [weekly payment], 204c [certain
executive, administrative or professional employees], 204.1 [car
dealer employee], 205 [farm workers and domestic help boarded
and lodged by employer], and 205.5 [agricultural employee] do
not apply to the payment of wages of employees directly
employed by the State of California.”
Similarly, subdivision (b) of section 220 provides that
“[s]ections 200 to 211, inclusive, and Sections 215 to 219,
inclusive [pertaining to specific industries and to remedies,
penalties and criminal liability], do not apply to the payment of
wages of employees directly employed by any county,
incorporated city, or town or other municipal corporation.”
16
This practice somewhat “blunts any inference one might
draw from legislative silence.” (Stone, supra, 16 Cal.5th at p.
1056.) The blunting effect on any inference from legislative
silence regarding public employers across the board for all
purposes is minimal, however, because section 220 extends its
express exemption only to certain public employers in specific
limited situations.
Two competing implications thus exist. On the one hand,
specific inclusion of public employers in several other provisions
implies that “employer” in section 2802 refers only to private
entities. On the other hand, section 220’s specific exclusion of the
State of California in subdivision (a) and other public entities in
subdivision (b) in several wage payment situations implies that
“employer” in section 2802 includes public entities. However, in
our view, the competing implications do not carry the same
weight. The first is supported by (1) a concerted legislative effort
to expressly refer in Article 2 to public employers when a
provision applies to them, an effort which left section 2802
unchanged, and (2) a companion legislative scheme (the workers’
compensation law) from the same 1937 session which expressly
includes public employers. The second is supported only by the
express exemption of only certain public employers in limited
situations.
We conclude the statutory structure evinces positive indicia
that the Legislature intended to exclude government employers
from the terms of section 2802.
3. Legislative History
The history of section 2802 also supports the conclusion
that the Legislature intended to exclude government employers
from its terms.
17
a. 1872 Civil Code Section 1969
Labor Code section 2802 derives from and is substantively
identical to 1872 Civil Code section 1969.
In 1870, the California Code Commission (Commission)
was appointed to draft a complete system of laws for presentation
to the Legislature. (Haymond & Burch, Civil Code of California
(Annotated) (1874) (Haymond & Burch), California Code
4
Commission Preface.) 1872 Civil Code section 1969, enacted as
part of this effort, was compiled by the Commission from statutes
and cases from other jurisdictions and from a treatise on agency
by United States Supreme Court Justice Joseph Story. (Stats.
1937, ch. 90 [Labor Code created to “consolidate[] and revise[] the
law relating to labor and employment relations”]; see Kleps, The
Revision and Codification of California Statutes 1849-1953 (1954)
42 Cal. L.Rev. 766.)
The Commission’s commentary on 1872 Civil Code section
1969 confirms the statute was influenced by numerous common
law and statutory authorities, including from New York,
Louisiana and England, going back to the early 19th century.
The Commission parsed its commentary according to the
following concepts in the statute: “indemnity for losses in
discharge of [the employee’s] duties”; “[indemnity for losses]
resulting from obedience to [the] employer”; and “[indemnity]
even though [the employee’s actions were] unlawful.” (Code
commrs., notes foll. Ann. Civ. Code, § 1969 (1st ed. 1872,
Haymond & Burch, commrs. annotators) p. 598.)
4
HathiTrust
<https://babel.hathitrust.org/cgi/pt?id=mdp.35112104866969&seq
=11&format=plaintext> [as of March 28, 2025], archived at
<https://perma.cc/3SMU-EWSA>.
18
In determining the intent and understanding of the 1872
Legislature, we give substantial weight to the comments of the
California Code Commission (Commission), which proposed the
1872 Civil Code. (Li v. Yellow Cab Co. (1975) 13 Cal.3d 804, 817.)
As pertinent here, in support of the concept of “indemnity
for losses in discharge of [the employee’s] duties” the Commission
cited: Story’s treatise on agency; a Louisiana Civil Code section;
three cases from New York; and three from England and Wales.
The comment stated: “NOTE.—“Indemnity for losses in
discharge of his duties.”—“Story Agency, Secs. 335-340; Code La.,
§§ 2991, 2993; Castle vs. Noyes, 14 N. Y., p. 332; Powell vs.
Newburgh, 19 Johns., p. 284; Ramsay vs. Gardner, 11 id., p. 439;
Adamson vs. Jarvis, 4 Bing., p. 66; Betts vs. Gibbins, 2 Ad. & L.,
p. 57; Taylor vs. Stray, 2 C. B. (N. S.), p. 196.” (1872 Civ. Code,
§ 1969, Code Comm’n annot., p. 598.)
In modern usage, the citation is: “Story’s ‘Commentaries
on the Law of Agency, as a Branch of Commercial and Maritime
Jurisprudence, with Occasional Illustrations From the Civil and
Foreign Law’ (3rd ed., 1846) sections 335-340, pp. 421-438
(Agency); La. Civ. Code arts. 2991 (‘The principal ought to
reimburse the expenses and charges, which the agent incurred in
the execution of the mandate’), 2993 (‘The attorney must also be
compensated for such losses as he has sustained on occasion of
the management of his principal’s affairs’) (1824); Castle v. Noyes
(1856) 14 N.Y. 329, 332 (‘it has been repeatedly held within the
law of agency that a promise to indemnify is binding when the
agent acts within the legitimate scope of his agency and in good
faith’); Powell v. Trustees of Village of Newburgh (N.Y. Sup. Ct.
1822) 19 Johns. 284 (Powell) (agents entitled to recover costs
incurred in mounting a legal defense for the principal); Ramsay v.
Gardner (N.Y. Sup. Ct. 1814) 11 Johns. 439 (agent acting in good
19
faith for the principal’s benefit is entitled to recover expenses
paid on the principal’s behalf); Adamson v. Jarvis (4 Bing. 66) (an
agent who acts in good faith based on the representations of the
principal is entitled to indemnity from the principal for any losses
incurred as a result of those representations, provided that the
agent was not aware of any wrongdoing); Betts vs. Gibbons (1834)
2 Ad. & E. 57 [111 Eng. Rep. R. 22] (between wrongdoers there is
neither indemnity nor contribution except when the act is not
clearly illegal in itself); and Taylor v. Stray (1857) 2 C. B. (N. S.)
196 [140 Eng. Rep. 380] (principal obligated to indemnify stock
broker for purchase made on the principal’s behalf).” (1872 Civ.
5
Code, § 1969, Code Comm’n annot., p. 612.)
The Commission cited nothing suggesting a definition for
the concept of “employer.”
Of particular interest here is the Commission’s citation to
Powell, where trustees of a municipality sought to recover
expenses incurred in defending a civil lawsuit on the
municipality’s behalf. (Powell, supra, 19 Johns. at p. 284.) The
court held these public workers were entitled to recover costs
incurred in mounting the municipality’s defense. (Id. at p. 289.)
Krug argues this establishes that the Legislature intended the
term “employer” in 1872 Civil Code section 1969 to refer to public
as well as private entities. We disagree.
The Commission cited Powell as support only for the
concept of “indemnity for losses in discharge of [the employee’s]
5
The 1824 Louisiana Civil code is available at Internet
Archive
<https://archive.org/details/civilcodestatel00louigoog/page/612/mo
de/2up> [as of March 28, 2025], archived at
<https://perma.cc/G7M4-QMX3>.
20
duties,” not for a definition of “employer,” which Powell did not
provide. Although it is true the parties seeking reimbursement
for employment-related expenses in that case happened to be
public employees, the court did not analyze the public nature of
their employer. The case cannot stand for a principle never
addressed. (See Kinsman v. Unocal Corp. (2005) 37 Cal.4th 659,
680 [an opinion is not authority for a proposition not considered].)
Krug similarly argues that the Commission’s citation to
Story’s treatise, Agency, indicates the Legislature intended 1872
Civil Code section 1969 to prescribe a right of reimbursement for
all employees without limitation, including public employers.
This is so, Krug argues, because Story wrote (as quoted by Krug)
that an agent’s right to reimbursement is “ ‘implied from the very
character of every agency.’ ” (Story, Agency, (3d ed. 1846) § 335,
p. 431.) By “every agency,” Krug argues, Story intended the right
of reimbursement to be both private and public.
We disagree, for several reasons. First, as with Powell, the
Commission cited Agency not for a definition of “employer” but to
illuminate the concept of “indemnity for losses in discharge of
[the employee’s] duties.” Each of the sources cited on that topic
dealt with that theme, and none defined “employer.”
Second, Story defined “employer” elsewhere in Agency as
follows: “In the common language of life, he, who, . . . to do any
act for his own benefit, or on his own account, employs another
person to do it, is called the Principal, Constituent, or Employer.”
(Agency, supra, § 3, p. 3, italics added.) The Commission could
have cited this definition had it intended to explain the scope of
the term, but the definition would not assist Krug because it
impliedly excludes public employers, as the phrases “own benefit”
and “own account” communicate a private or individual interest
21
rather than a community or broader interest generally associated
with the word “public.”
Third, Story states that unless otherwise indicated, the
type of agency under discussion “is that[] which arises in the
course of commercial affairs.” (Agency, supra, § 4, p. 5 [“The
Agency, which will be principally, though not exclusively, treated
of in the present work, is that[] which arises in the course of
commercial affairs; and illustrations will be borrowed from other
sources, only when they more fully explain the doctrines
applicable to the former”].) Nothing in sections 335 to 340 in
Agency, the only sections cited by the Commission to support
1872 Civil Code section 1969, indicate they apply to public (in
addition to commercial) employers; the words “public” and
“government” are not mentioned. Story discusses agency in
public affairs in a different chapter, sections 302 to 322, which
the Commission did not cite. (Id. at pp. 306-333.)
Fourth, whereas in his briefing Krug quotes only a
fragment of one sentence in section 335 in Agency (which itself
constitutes only one of six sections the Commission cited to
support 1872 Civil Code section 1969), the full passage,
acknowledged by Krug at oral argument, establishes that Story
understood an agent’s right to reimbursement exists only when
the scope of the agency permits expenditures. An agent’s right to
reimbursement, he wrote, is “implied from the very character of
every agency, to which such advances, expenses, and
disbursements are incident, whenever they fall within the
appropriate duty of the agent.” (Story, Agency, (3d ed. 1846)
§ 335, p. 431, italics added.) Nothing in the record suggests that
Story or the Commission understood that advances, expenses and
22
disbursements are incident to and within the appropriate duties
of public employees generally.
Finally, even if Story’s conception of principals generally
included public entities, he wrote in U.S. v. Hoar that in the
context of legislative drafting, the general words of a statute
should not include the government “unless that construction be
clear and indisputable upon the text of the act.” (U.S. v. Hoar
(C.C.D. Mass. 1821) 26 F.Cas. 329, 330 [“It appears to me,
therefore, to be a safe rule founded in the principles of the
common law, that the general words of a statute ought not to
include the government, or affect its rights, unless that
construction be clear and indisputable upon the text of the act”].)
Our Supreme Court quoted U.S. v. Hoar for this rule in
Mayrhofer v. Board of Education (1891) 89 Cal. 110, 112, which
the Court cited in Stone to support its holding that it “is deeply
embedded in our state’s jurisprudence” that “absent express
words to the contrary, governmental agencies are not included
within the general words of a statute.” (Stone, supra, 16 Cal.5th
at p. 1053.)
In sum, the only positive indication about the meaning of
“employer” which can be inferred from the Commission’s
comments on 1872 Civil Code section 1969 is that the term
referred only to private entities. The Commission cited Story’s
treatise on agency, in which he defined “employer” in terms of
private entities and limited his discussion—in the portion of
Agency cited by the Commission—to private agencies. We
conclude the legislative history of Civil Code section 1969 evinces
positive indicia the provision was intended to apply only to
private employers.
23
b. Senate Bill No. 1305
Later legislative history is also in accord. Section 2802 was
amended in 2000 by Senate Bill No. 1305 (SB 1305). Krug argues
that a September 6, 2000 enrolled bill report from the California
Department of Finance to Governor Davis pertaining to the fiscal
impact of SB 1305 indicates the Legislature intended section
2802 to require public employers to reimburse employees for
employment-related expenses. We disagree.
Before SB 1305, case law interpreting section 2802 was
split on the issue of whether an employee may recover costs and
attorney’s fees in a civil action for indemnification under that
section. (Compare O’Hara v. Teamsters Union Local No. 856 (9th
Cir. 1998) 151 F.3d 1152, 1160-1161 [costs and fees recoverable]
and Jacobus v. Krambo Corp. (2000) 78 Cal.App.4th 1096, 1105-
1106 [fees not recoverable].) The author of SB 1305 stated that
section 2802 was “useless” if the cost of hiring a lawyer to enforce
employee rights is greater than the unreimbursed expenses the
employee is trying to recover. (Sen. Floor Analysis, Sen. Bill No.
1305, as amended Aug. 18, 2000, p. 3; see O’Hara, at p. 1161 [“An
employer who wished to avoid paying an employee who had
proven a right to indemnification under § 2802 could simply
refuse—secure in the knowledge that it might very well cost the
employee more to enforce his rights under § 2802 than the
amount expended in the original action”].)
SB 1305 amended section 2802 to provide that interest and
costs, including attorney’s fees, shall be awarded to an employee
in an indemnification action against an employer for necessary
work-related expenditures and losses.
The Senate’s Rules Committee and the Assembly’s Labor
and Employment Committee prepared three floor analyses
24
summarizing SB 1305, explaining the need for it, and describing
its potential fiscal impact on the state. None of the analyses
found any fiscal impact on the state or suggested that section
2802 applies to public employers; the Rules Committee’s report
stated that the Senate’s Appropriations, Budget and Fiscal
Review, and Local Government committees found the bill would
have no fiscal impact. (Assem. Floor Analysis, Sen. Bill No. 1305,
as amended Aug. 7, 2000 [“Fiscal Effect: Unknown”]; Assem.
Floor Analysis, Sen. Bill No. 1305, as amended Aug. 18, 2000
[“Fiscal Effect: Unknown”]; Sen. Floor Analysis, Sen. Bill No.
1305, as amended Aug. 18, 2000 [“Fiscal Effect: Appropriation
[Com]: No[,] [Budget and Fiscal Review] Com.: No[,] Local
[Government Com]: No”].)
After the Legislature passed and enrolled SB 1305 and sent
it to the governor, the Department of Finance drafted an
“enrolled bill report” in which it stated, “We believe that by
directly requiring an employer, including state agencies, to
indemnify employees for ‘all necessary expenditures and losses’
incurred by an employee following directions of the employer, the
bill could result in some increased operational costs for the
State.” (Dept. of Finance, Enrolled Bill Rep. on Sen. Bill No.
1305 prepared for Governor Davis (Sept. 2000) p. 1, italics added;
see Enrolled Bill Memorandum on Sen. Bill No. 1305 prepared
for Governor Davis (Sept. 2000) p. 1.) The Finance Department
gave no explanation for its belief that section 2802 applied to
state agencies.
Although an enrolled bill report prepared by a responsible
agency contemporaneous with passage and before signing can be
instructive on matters of legislative intent (Elsner v. Uveges
(2004) 34 Cal.4th 915, 934, fn. 19), the Finance Department’s
25
enrolled bill report on SB 1305 is not instructive. Prepared by
the Executive Branch to brief the governor after SB 1305 was
enrolled but before it was signed (see In re Lucas (2012) 53
Cal.4th 839, 855, fn. 13), the report gave no explanation for and
provided no analysis supporting its conclusion that section 2802
applied to state agencies. For example, the report referenced
nothing in the text, context or history of section 2802 suggesting
it applies to state agencies, cited no caselaw, litigation, or report
concerning a section 2802 reimbursement claim against a state
agency, and ignored the Legislature’s floor reports, which either
described the fiscal impact of SB 1305 as “unknown” or stated
that three Senate committees had concluded there would be no
fiscal impact. We cannot conclude that three unexplained words
(“including state agencies”) from the Executive Branch’s Finance
Committee, written after all Legislative Branch activity had
concluded, indicates the Legislature intended that section 2802
apply to public entities. (See Conservatorship of Whitley (2010)
50 Cal.4th 1206, 1218-1219, fn. 3 [although enrolled bill reports
can be “ ‘instructive’ in filling out the picture of the Legislature’s
purpose,” they “certainly do not take precedence over more direct
windows into legislative intent such as committee analyses”];
Joyce v. Ford Motor Co. (2011) 198 Cal.App.4th 1478, 1492
[“ ‘enrolled bill reports cannot reflect the intent of the Legislature
because they are prepared by the executive branch, and then not
until after the bill has passed the Legislature and has become
“enrolled” ’ ”]; McDowell v. Watson (1997) 59 Cal.App.4th 1155,
1161-1162, fn. 3 [“it is not reasonable to infer that enrolled bill
reports prepared by the executive branch for the Governor were
ever read by the Legislature”].)
26
c. Section 2802.1
The only other legislative history on point we have
discovered concerns Article 2. We have already discussed the fact
that the Legislature added half a dozen provisions to Article 2 in
which it expressly referred to public employers when it intended
to do so, yet left section 2802 unchanged. We will briefly touch
again on one of those provisions, section 2802.1.
Assembly Bill No. 2588, which created section 2802.1, was
designed to alleviate a nursing shortage during the COVID-19
pandemic by prohibiting hospitals from requiring nursing
applicants to pay for in-house training, i.e., training unrelated to
the nurses’ broader certification. Section 2802.1 states that the
reimbursement obligation prescribed by section 2802 applies to
the training policies of public hospitals. An analysis of the bill by
the Senate Committee on Labor, Public Employment and
Retirement stated the bill “only applies to applicants for
employment and employees providing direct patient care for an
employer, whether public or private.” (Sen. Labor, Pub.
Employment & Retirement Com., Analysis of Assem. Bill No.
2588 (2019-2020 Reg. Sess.) as amended Aug. 11, 2020, p. 2,
italics added.) By confirming that the term “employer” refers to
both public and private entities for purposes of the bill, the
analysis suggests that “employer” standing alone in section 2802
would not refer to public entities.
4. Case Law
No case has applied the reimbursement obligations set
forth in section 2802 to a public employer.
Johnson v. Arvin-Edison Water Storage Dist. (2009) 174
Cal.App.4th 729 held that the Legislature generally follows the
rule that unless the law in question expressly states otherwise, a
27
Labor Code provision does not apply to public employers. There,
the court observed that “[i]n the context of reviewing the
legislative history of an amendment to provide whistleblower
protection to public employees (§ 1102.5), the court in Campbell
v. Regents of University of California (2005) 35 Cal.4th 311
quoted the Senate Committee on Industrial Relations as follows:
‘ “These provisions are silent as to their applicability to public
employees. Generally, however, provisions of the Labor Code
apply only to employees in the private sector unless they are
specifically made applicable to public employees.” ’ ” (Id. at p.
736.) The Johnson court held that the Legislature’s iteration of
the rule “is an indication that the Legislature follows it.” (Ibid.)
In the context of wage and hour requirements, for example,
“appellate decisions have uniformly concluded that, unless the
laws in question expressly state otherwise, the Labor Code’s wage
and hour requirements do not apply to public employers.” (Stone,
supra, 16 Cal.5th at p. 1059.) One court held that payment to
employees for work uniforms is a part of the employees’
compensation and should be considered like any other payment of
wages, compensation or benefits. (In re Work Uniform Cases
(2005) 133 Cal.App.4th 328, 338.) Under this determination, the
court held, an employee’s claim of entitlement to compensation
for uniform expenses as indemnification under section 2802
directly conflicts “with a public entity’s power to provide for
compensation of its employees . . . .” (Ibid.)
In Weil v. Raisin City Elementary School District (E.D. Cal.,
Dec. 20, 2021, No. 1:21-cv-00500-AWI-EPG) 2021 WL 6010137,
the district court held that the contrast between the statutory
silence of section 2802 on the scope of the term “employer” and
the express provisions in nearby statutes in Article 2 alone
28
sufficed to establish that section 2802 does not apply to public
employers. (Id. at p. *4.)
Krug relies on Mendoza v. Fonseca McElroy Grinding Co.,
Inc. (2021) 11 Cal.5th 1118 (Mendoza) for the proposition that
legislative silence on whether the term “employee” applies to
public as well as private employees suggests that public
employees are included. Mendoza is not instructive.
In Mendoza, private contractors sought prevailing wages
for mobilization work, which involved transporting heavy
machinery to and from a public works site. In the course of the
analysis, the Court discussed the origins of the prevailing wage
laws, which were first enacted in an uncodified version in 1931 in
response “ ‘to the dire economic conditions of the Great
Depression, when private construction diminished severely and
“the oversupply of labor was exploited by unscrupulous
contractors to win government contracts.” ’ ” (Mendoza, supra, 11
Cal.5th at p. 1123.)
The prevailing wage law evolved through three versions.
The uncodified measure (the 1931 Act) provided in relevant part
that a prevailing wage must be paid to “ ‘all laborers, workmen
and mechanics employed by or on behalf of the State of
California, or by or on behalf of any county, city and county, city,
town, district or other political subdivision of the said state,
engaged in the construction of public works. . . . Laborers,
workmen and mechanics employed by contractors or
subcontractors in the execution of any contract or contracts for
public works . . . shall be deemed to be employed upon public
works.’ ” (Stats. 1931, ch. 397, § 1, p. 910.) [¶] The first sentence
quoted above extended coverage to those ‘employed by or on
behalf’ of the government in constructing public works. [Fn.]
29
The second sentence ‘deemed to be employed upon public works’
those who work for contractors or subcontractors. The latter
sentence . . . appeared to clarify that prevailing wage protection
extends not only to those employed directly by the government,
as confirmed in the first sentence, but also to those who were
employed by contractors or subcontractors.” (Mendoza, supra, 11
Cal.5th at pp. 1127-1128.)
When the prevailing wage law was codified in 1937, the two
sentences quoted above were split into two new sections, 1771
and 1772. (Stats. 1937, ch. 90, p. 243.) Section 1771 provided
that a prevailing wage would be paid on public work “to all
workmen employed on public works.” (Ibid.) Section 1772
provided: “Workmen employed by contractors or subcontractors
in the execution of any contract for public work are deemed to be
employed upon public work.” (Ibid.)
The Legislature explicitly excluded government workers
from the prevailing wage entitlement nearly 40 years later.
(Mendoza, supra, 11 Cal.5th at p. 1130.)
Mendoza held that even though the 1937 version of section
1771 was silent as to whether “all workmen” included public
employees, it held “there is little reason to believe the omission
reflected a legislative intent to exclude governmental workers
from the scope of the prevailing wage law.” (Mendoza, supra, 11
Cal.5th at p. 1130.) This is so, the Court reasoned, not only
because section 1771 contained no exclusion for public employees,
but because section 1772’s express reference to private workers
again appeared to clarify that prevailing wage protection extends
not only to those employed directly by the government, as
confirmed in the first sentence. Moreover, the Court reasoned, an
“explicit exclusion of prevailing wage entitlement for government
30
workers was . . . adopted by the Legislature” nearly 40 years
later, suggesting government workers were not excluded before
then. (Ibid.) Finally, the Court observed that the Commission,
which prepared the Proposed Labor Code in 1936 to codify
various labor statutes, included “no comment or annotation
associated with proposed section 1771 that would indicate an
intent to change the meaning or scope of the provision in the
1931 Act from which that statute was derived.” (Id. at fn. 14.)
In Mendoza, therefore, the Court did not hold that
legislative silence on whether the term “employee” applies to
public as well as private employees suggests that public
employees are included, it held that the evolution of section 1772
itself implied that the Legislature intended to protect public as
well as private workers.
No similar evolution in section 2802 exists here. On the
contrary, section 2802 has proven impervious to changes in the
Labor Code that apply employer obligations to public entities.
Krug relies on In re Acknowledgment Cases (2015) 239
Cal.App.4th 1498 for the proposition that section 2802 applies to
public employers. We disagree. In that case the City of Los
Angeles alleged that police academy trainees were liable for the
cost of their training. The issue was whether the costs of
employee training qualified as “necessary expenditures or losses
incurred by the employee” in direct consequence of the discharge
of the employee’s duties. (§ 2802, subd. (a).) Apparently, no
party raised, and the court did not discuss whether section 2802
applies to public as opposed to only private employers. Cases are
not authority for propositions not considered. (B.B. v. County of
Los Angeles (2020) 10 Cal.5th 1, 11.)
31
Krug argues that some courts have held that “employers”
includes public employers. (E.g., Flowers v. Los Angeles County
Metropolitan Transportation Authority (2015) 243 Cal.App.4th
66, 79 [absent a specific exemption, a wage order covering
“[e]very employer” was broad enough to subject public employers
to a minimum wage requirement]; Sheppard v. North Orange
County Regional Occupational Program (2010) 191 Cal.App.4th
289 [a wage order’s general terms applied to a public employer in
the absence of an exemption]; Guerrero v. Superior Court (2013)
213 Cal.App.4th 912; Marquez, supra, 32 Cal.App.5th 552
[same].) In other words, Krug argues, general terms like
“employer” include public employers unless defined to exclude
them.
These cases are distinguishable because as discussed in
Stone, they involved provisions that are expressly applicable to
public employers. Sheppard, for example, “considered whether
the minimum wage provision in IWC wage order No. 4-2001 (Cal.
Code Regs., tit. 8, § 11040) applied to a public employer. . . .
[T]he Sheppard wage order . . . appl[ied] to all employers,
including public entities.” (Stone, supra, 16 Cal.5th at p. 1060.)
The same wage order was at issue in Marquez. (Marquez, supra,
32 Cal.App.5th at p. 569.) Similarly, Flowers considered a public
transit authority’s liability for minimum wage and rest break
violations under IWC wage order No. 9-2001 (Cal. Code Regs., tit.
8, § 11080), which expressly made minimum wage and rest period
requirements applicable to public transit drivers. (Stone, at p.
1060.) Finally, Guerrero discussed public entity liability when
construing IWC wage order No. 15-2001 (Cal. Code Regs., tit. 8,
§ 11150), which defines “employer” as “any person as defined in
Section 18 of the Labor Code,” defined “employee” as “any person
employed by an employer” (Cal. Code Regs., tit. 8, § 11150, subd.
(2)), and “ ‘unlike 14 of the 17 industry, occupation and
32
miscellaneous wage orders . . . does not expressly exempt public
employees from its provisions.’ [Citation.] Accordingly, based on
its plain language, the wage order’s requirements applied to
public as well as private employers” (Stone, at p. 1060, italics
omitted).
Krug relies on Knowles v. Roberts-at-the-Beach Co. (1953)
115 Cal.App.2d 196 for the idea that an unrestricted
interpretation of “employer” applies under another Article 2
statute, section 2750, which states, “The contract of employment
is a contract by which one, who is called the employer, engages
another, who is called the employee, to do something for the
benefit of the employer or a third person.” We disagree. Knowles
involved a personal injury suit by a bar patron hurt while
participating in a floor show. The issue on appeal was whether
the patron could void the bar’s assumption-of-the-risk affirmative
defense on the theory she was an unpaid “employee” during the
floorshow. (Knowles, at pp. 198-199.) Nothing in Knowles
suggests that the meaning of “employer” in section 2802, and
whether it includes public entities, can be determined by
reference to section 2750, especially in light of Stone’s observation
that “[t]he Labor Code does not [generally] define the term
‘employer.’ ” (Stone, supra, 16 Cal.5th at p. 1054.) In any event,
we fail to see how the phrase “one[] who . . . engages another . . .
to do something” materially explains the term “employer” for our
6
purposes here. (§ 2750.)
6
Although no party contends any wage order directly
applies here, CSU argues that the amendment history of Wage
Order No. 4-2001, governing “professional, technical, clerical,
mechanical, and similar occupations” (Cal. Code Regs., tit. 8,
§ 11040(1)), reflects the legislative intent behind Labor Code
section 2802. This is so, CSU argues, because section 9(B) of the
33
5. Conclusion
In sum, although the language of section 2802 is silent on
whether “employer” denotes both public and private entities, the
statutory structure and legislative history provide positive indicia
of legislative intent to exclude public employers from the
provision’s reimbursement obligations. The Legislature: (1)
declined to expressly apply section 2802 to public employers, as it
did in the workers’ compensation laws, which were enacted in the
same 1937 legislative session; (2) declined to expressly apply the
reimbursement obligation of section 2802 to public employers, as
wage order, which obligates an employer to “provide and
maintain” required “tools or equipment,” is analogous to Labor
Code section 2802, and was left untouched in 2000 when other
provisions of the wage order were amended to expressly apply to
public employers. CSU argues this wage order history reflects a
legislative intent not to apply statutory reimbursement
obligations to public employers.
Krug, on the other hand, relies on Bowerman v. Field Asset
Services, Inc. (9th Cir. 2022) 39 F.4th 652, 665, for the
proposition that the wage orders do not govern section 2802
reimbursement obligations. We need not decide this issue
because no party contends that a wage order directly applies
here. However, inapplicability of a wage order only means that
section 2802 does not tie the definition of “employer” to section
18’s definition of “person”; it does not mean that section 2802
applies to public employers.
While we agree that the history of some of the wage orders
shows certain provisions do not apply to public employers, we
respectfully reject both Krug’s and CSU’s broad reliance on wage
orders and DLSE communications as evidence of the legislative
intent behind section 2802.
34
it did with other employer obligations set forth in sections 555,
552, 233, and 1182.12; (3) declined to amend section 2802 to
apply to public employers when it added or amended other
provisions in Article 2 to do so expressly; and (4) expressly made
section 2802 applicable to public employers only in the limited
context of reimbursement for employer-required training in
public hospitals. Moreover, the Commission, which compiled the
predecessor to section 2802, relied on a treatise which defined
“employer” in terms of private entities and limited its discussion
to private principal/agent relationships.
Therefore, we conclude section 2802 does not obligate CSU
to reimburse employees for work-related expenses, without the
7
need to resort to interpretive maxims.
7
Krug observes that Education Code section 89500 directs
CSU to “provide by rule for the government of [its] appointees
and employees, pursuant to this chapter and other applicable
provisions of law, including, but not limited to: . . . uniform and
equipment allowances . . . .” (Ed. Code, § 89500, subd. (a)(1).) He
argues that because CSU must provide uniform and equipment
allowances pursuant to “other applicable provisions of law,” its
doing so is subject to legislative regulation. (Slivkoff v. Board of
Trustees (1977) 69 Cal.App.3d 394, 403 [CSU is subject to
legislative regulation].) We do not disagree. We hold only that
section 2802, specifically, provides no such regulation.
35
DISPOSITION
The judgment is affirmed. Each side is to bear its own
costs on appeal.
CERTIFIED FOR PUBLICATION
M. KIM, J.
We concur:
BENDIX, Acting P. J.
WEINGART, J.
36