Division of Labor Standards Enforcement v. Williams

This is an appeal by plaintiff from a summary judgment against its action to enjoin defendant restaurant employers from crediting meal values of employees toward the state minimum wage.

Introduction

The appellant is the State of California Division of Labor Standards Enforcement, Department of Industrial Relations (hereinafter referred to as the Division or Plaintiff). It has the authority to enforce labor laws and standards of the State of California.

Respondents are restaurants and their owners operating in the Santa Barbara area (hereinafter referred to as Defendants or Employers).

Certain categories of restaurant employees of Defendants in the past have received less than the mandatory minimum wages paid in money as set by the State of California. To the wages paid in money to the employees the employer has credited toward satisfaction of the minimum wage a sum not over the meal values permitted by the state wage order (90 cents for breakfast; $1.25 for lunch; $1.65 for dinner). Until October 18, 1976, this practice was accepted; but after that date a new wage order of the state became effective which required that there be a “voluntary written agreement” of the…