High Court Temporarily Blocks Appellate Ruling on ‘Sub’ Wage

A “sub-minimum” wage for California workers who receive tips--struck down by an appeals court last week--could go into effect July 1 while the state Supreme Court reviews its legality, the high court said Friday.

In a brief order, the justices said the appellate ruling would be set aside, at least temporarily, while they decide whether to grant review of an appeal of the decision by the state Industrial Welfare Commission.

The effect of Friday’s order would allow state officials to implement the new, two-tiered wage system on July 1, unless the court acts before then on the commission’s petition for review, attorneys said.

The commission had asked the high court to issue a stay of a ruling made June 16 by a state Court of Appeal in Sacramento, invalidating a commission order that would establish a $3.50 per hour minimum wage for employees, such as restaurant workers, who receive at least $60 a month in tips.

Under the commission’s order, the minimum wage for most other workers would be raised to $4.25, compared to the current minimum of $3.35 for all workers.

Friday’s order by the justices denied the commission’s request for a stay as “premature,” but went on to point out that under the law, the Court of Appeal’s ruling could not take effect until the Supreme Court acted on the commission’s petition for review of the appellate decision. Jan T. Chilton, a San Francisco attorney representing the commission, expressed the hope that the high court will act soon on the petition for review.

Lloyd W. Aubry, state labor commissioner, said in a telephone interview, he could not say at this point what the Division of Labor Standards Enforcement will do on July 1 absent any further ruling by the Supreme Court. “I want to make sure I understand what the court actually (said) and what the status of the (appeals court) decision is,” before deciding what to do July 1. “We’ll meet at the beginning of next week to see what we’re going to do.”

Meanwhile, lawyers for the California Restaurant Assn. and the California Hotel and Motel Assn. filed a separate request Friday for a stay of the appeal court decision.

In their court papers, the attorneys for those organizations requested that the Supreme Court also stay implementation of the new $4.25-an-hour minimum wage until the “sub-minimum” wage issue is resolved.