Vineyard & Winery Management

March/April 2015

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w w w. v w m m e d i a . c o m M a r - A p r 2 015 | V I N E YA R D & W I N E RY M A N A G E M E N T 9 5 persons working at the winery a minimum wage. According to the DIR, the Labor Commissioner's office received a complaint from a Westover volunteer, alleging the individual could not seek work- er's compensation for a job injury because the winery did not consider the individual an "employee." Upon inspection, the DIR discovered Westover was using more than 20 individuals who were not covered by any worker's compensation scheme, nor were they compensat- ed monetarily for their work efforts. Westover classified these indi- viduals as unpaid volunteers, claim- ing the business was not required to provide benefits. The DIR disagreed. Westover was assessed approxi- mately $29,375 in back wages and $29,375 in liquidated damages (to compensate individuals who had not received wages when they were due). Penalties were also levied against the winery in the amount of $56,800 for minimum wage and pay stub violations, and for failure to offer worker's com- p e n s a t i o n c o v e r a g e . We s t o v e r ultimately paid the assessed back wages and penalties – the liqui- dated damages portion of the fine is currently under appeal. Due to these major fines and penalties, owner Bill Smyth decided to retire and close Westover for good. CURRENT LAW In light of the DIR's action, it is now crucial that all businesses – not just wineries – take care to comply with California's ever-expanding list of labor laws. California law defines a "volun- teer" as "an individual who per- forms work … without promise, expectation or receipt of any com- pensation for work performed," and only government agencies and nonprofits are permitted to utilize volunteers, with a few restrictions. (Lab. Code, § 1720.4.) For-profit businesses such as wineries, on the other hand, are required to pay employees at least the minimum wage. Through this mandate, Cali- fornia claims its public policy inter- ests are met, and the state will not is classified as an employee or as a volunteer. This is not so in all states. In Arizona, for example, the employer-employee/volunteer relationship is examined using the totality of the facts, "including the intentions and expectations of the incur expenses from volunteers who make no contributions to the state-run worker's compensation scheme. California law ignores an indi- v i d u a l 's " s u b j e c t i v e i n t e n t " i n determining whether he or she NEW & USED UNITS AVAILABLE All Major Credit Cards Accepted 7ROO)UHH866-307-9731 )$;281-227-8404 COLD SHOT CHILLERS ® s s 0RVW0DFKLQHV6KLSSHGLQ:HHNVRU/H VV s

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