Prevailing Party Entitled to Routine Costs in Labor Code section 1194 Overtime Compensation Case.
Employer in Plancich v. United Parcel Service, Inc., Case No. E050631 (4th Dist., Div. 2 Aug. 11, 2011) (certified for publication) defensed employee in an overtime compensation/meal and rest break/failure to maintain records case. However, the trial court denied an award of $38,387.20 in routine costs based on the conclusion that the Labor Code section 1194 overtime compensation statute would not allow costs to a winning employer (but would to a winning employee).
The Fourth District, Division 1 overturned the ruling so that employer could receive routine costs.
The appellate court determined that section 1194 had no express exception to the general rule that a prevailing party is entitled to costs. At best, any suggestion that a prevailing employer is prohibited from recovering its costs is implied by the section 1194 language. However, without an express exception to the general rule, routine costs were awardable. In reaching this conclusion, the appellate court also distinguished Earley v. Superior Court, 79 Cal.App.4th 1420 (2000), finding it dealt with attorney’s fees and did not discuss the applicable routine costs statutory provisions. Despite the policy argument that a routine costs award might have a chilling effect on employee lawsuits, the clearness of the statutory language left no room for judicial fiat.
