Issue link: http://read.dmtmag.com/i/467731
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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
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