HARRELL, J.
In this relatively contentious dispute between a young lawyer associate and his former law firm employer over a small amount of allegedly unpaid wages, a medium amount of treble damages, and a large amount of attorney's fees, we are called on to consider the intersection between a fairly complex choice of law doctrine and a fairly straightforward portion of Maryland's Labor and Employment statute. We hold that unpaid wage claims arising from employment entered into in states other than Maryland are not excluded, for that reason alone, from being litigated under the Maryland Wage Payment and Collection Law ("MWPCL"), Labor & Employment, §§ 3-501 et seq. The choice of law doctrine lex loci contractus is not implicated, in the absence of an express choice of law selection in the contract, when such claims do not involve the validity, enforceability, interpretation, or construction of the employment contract. We suggest further that the MWPCL represents
Matthew Feinberg, Esq. ("Feinberg"), filed on 4 October 2012 a Complaint in the District Court of Maryland, sitting in Montgomery County, against Cunningham & Associates, P.L.C. ("C & A"), a Virginia-based law firm, and its principal, Joseph F. Cunningham ("Cunningham").
Feinberg was the only witness to testify at the 17 April 2013 trial in the District Court. He told the Court of his application for an attorney position with C & A, the interview process, and his initial understanding of the terms of his employment. Feinberg suggested that he was hired by C & A to serve as a Maryland attorney, handle Maryland cases, appear before Maryland courts, and advise Maryland clients. He recounted signing a written agreement ("Agreement") with Cunningham wherein his position was described as that of an "independent contractor," although he could not recall specifically where geographically he signed the agreement. He spoke about his day-to-day practice, work environment, and responsibilities, including Cunningham's requirement that he spend the vast majority of his time in C & A's Virginia office. Feinberg testified that his work for Petitioners included representing clients at trial and motions hearings, attending depositions, meeting with clients, and gaining admission to the U.S. District Court, all in Maryland. As might be expected in a wage claim case, a substantial portion of Feinberg's testimony was devoted to the manner in which he was paid by C & A and monies that he claimed were withheld improperly from his paychecks on various occasions. The Agreement that Feinberg signed with Cunningham was produced. The portions of the contract relevant potentially to the payment of wages are as follows:
Feinberg also discussed several instances when he disputed with Cunningham particular withholdings.
At the close of Feinberg's case-in-chief, Petitioners moved to dismiss the remaining wage claims on two grounds: first, no claim could lie on an implied contract theory, such as quantum meruit or unjust enrichment, as there was an express contract between the parties; and, second, the parties' contract was governed, under Maryland's choice of law principles, by Virginia's law, and, as such, the MWPCL did not apply.
The trial judge's ruling turned on one fact: the employment contract was a "Virginia" contract. In his view, because the Agreement between Feinberg and C & A was an employment contract entered in Virginia, and not in Maryland, the court held that the MWPCL did not apply, and the contract was governed instead by Virginia law. Furthermore, the District Court did not identify a strong public policy basis to apply the MWPCL to Feinberg's claims.
Feinberg filed a Motion to Alter or Amend Judgment and/or for Reconsideration regarding his MWPCL claim. He relied on Himes Associates, Ltd. v. Anderson, 178 Md.App. 504, 943 A.2d 30
Feinberg appealed, on the record, to the Circuit Court for Montgomery County. See Maryland Rule 7-102(b)(1). The parties submitted on memoranda. Feinberg reiterated his argument that Himes controlled, that the District Court erred in granting Petitioners' Motion to Dismiss Feinberg's MWPCL claim, and further argued that the evidence at trial indicated that there was a violation of the MWPCL. Petitioners, in their written response, argued that the doctrine of lex loci contractus required that Feinberg's claims be resolved under Virginia law. Petitioners relied on several federal cases for the proposition that the MWPCL did not reflect any fundamental public policy of Maryland so as to supersede traditional conflict of laws principles. Petitioners argued, in the alternative, that if the MWPCL claim was dismissed improperly below, the case should be remanded for further fact-finding. Feinberg, in his reply, argued inter alia that lex loci contractus did not apply to his wage claims.
The Circuit Court reversed the dismissal of Feinberg's MWPCL claim and remanded the matter for further proceedings. That court did not disturb the District Court's factual finding that the employment contract was a "Virginia" contract, but reasoned that Himes controlled, suggesting that Feinberg could recover under the MWPCL. The Circuit Court declined to determine whether Feinberg was indeed an employee of C & A or whether there was a bona fide dispute as to the wages claimed, but instead left those issues to the District Court on remand.
We granted C & A's and Cunningham's Petition for Writ of Certiorari. 437 Md. 66, 85 A.3d 156 (2014). Petitioners posed the following two questions:
Petitioners urge us to address squarely the interface between the reach of the MWPCL and the common law choice of law principle lex loci contractus. They argue that choice of law principles require the parties' dispute over unpaid wages be
Feinberg reiterates the arguments made in the trial courts, and suggests further that the Circuit Court declined correctly to apply lex loci contractus to the present litigation because that doctrine only applies to questions of validity or interpretation of a contract. He argues also that, even if lex loci contractus does apply, the MWPCL represents a strong public policy which should override the application of that doctrine to the case at bar, and this Court should ignore selectively the doctrine in favor of a more modern approach favoring his position.
We hold that the matter before us does not implicate the choice of law doctrine of lex loci contractus. In a nifty bit of considered dicta, even if lex loci contractus applied, we think that it would not preclude a claim such as Respondent's under the MWPCL, as the MWPCL represents a strong public policy of Maryland.
The rules of procedure governing appeals to a circuit court on the record made in the District Court "are not as comprehensive as those governing appeals to the Court of Special Appeals or to [the Court of Appeals], [but] we have said that the ordinary rules governing the scope of appellate review in the latter courts are generally applicable to appeals on the record in a circuit court." Atlantic Mut. Ins. Co. v. Kenney, 323 Md. 116, 122, 591 A.2d 507, 509-10 (1991) (citing Ryan v. Thurston, 276 Md. 390, 391-93, 347 A.2d 834, 835-36 (1975)). For purposes of this appeal, the parties have treated the trial court's decision as an "[a]ction [t]ried [w]ithout a [j]ury" pursuant to Maryland Rule 8-131. Under this rule, the appellate court must "review the case on both the law and the evidence. It will not set aside the judgment of the trial court on the evidence unless clearly erroneous, and will give due regard to the opportunity of the trial court to judge the credibility of witnesses." Md. Rule 8-131(c). Appellate courts "`accept and [are] bound by findings of fact in the lower court unless they are clearly erroneous.'" State Sec. Check Cashing, Inc. v. American General Financial Services (DE), 409 Md. 81, 110, 972 A.2d 882, 899 (2009) (quoting $3,417.46 U.S. Money v. Kinnamon, 326 Md. 141, 149, 604 A.2d 64, 67 (1992)). We review the trial court's application of law to the facts for legal error, a non-deferential standard. State Sec. Check Cashing, Inc., 409 Md. at 111, 972 A.2d at 899. We review also without deference the trial court's pure conclusions of law. Id. Under this standard, the lower court's interpretations of law "enjoy no presumption of correctness on review: the appellate court must apply the law as it understands it to be." Rohrbaugh v. Estate of Stern, 305 Md. 443,
Maryland allows employees to recover wages withheld unlawfully from them by their employers under two statutes: the Maryland Wage Payment and Collection Law ("MWPCL") and the Maryland Wage and Hour Law ("MWHL"). Peters v. Early Healthcare Giver, Inc., 439 Md. 646, 652-53, 97 A.3d 621, 624-25 (2014). The MWHL provides a minimum wage standard, id., and the MWPCL "sets certain standards for the frequency and methods of compensation, permissible deductions from pay, and notification of employees about the details of pay and changes in the amount or method of payment." Ocean City, Md., Chamber of Commerce, Inc. v. Barufaldi, 434 Md. 381, 385, 75 A.3d 952, 954 (2013). The MWPCL is a statutory cause of action, the purpose of which is "to provide a vehicle for employees to collect, and an incentive for employers to pay, back wages." Battaglia v. Clinical Perfusionists, Inc., 338 Md. 352, 364, 658 A.2d 680, 686 (1995); see Barufaldi, 434 Md. at 384, 75 A.3d at 954.
We have had occasion to examine in detail the development of the MWPCL and its fee-shifting provision. See Friolo v. Frankel, 373 Md. 501, 515-18, 819 A.2d 354, 362-64 (2003); Barufaldi, 434 Md. at 391-94, 75 A.3d at 958-59. We note here only a few highlights of that history. The precursor to the MWPCL was enacted in 1966, but did not provide originally for a direct private action against an employer for a violation of its provisions. Marshall v. Safeway, Inc., 437 Md. 542, 559, 88 A.3d 735, 744-45 (2014). After the elimination of the unit within the office of the Commissioner of Labor and Industry responsible for prosecuting such civil actions, the General Assembly added a private right of action to "provide a meaningful remedy to the harm flowing from the refusal of employers to pay wages lawfully due...." Marshall, 437 Md. at 562, 88 A.3d at 746; see Baltimore Harbor Charters, Ltd. v. Ayd, 365 Md. 366, 380-83, 780 A.2d 303, 311-13 (2001). The private cause of action was also designed to be "an incentive for employers to pay[] back wages," Medex v. McCabe, 372 Md. 28, 39, 811 A.2d 297, 304 (2002) (quotations omitted), and to "ensure that an employee will have the assistance of competent counsel in pursuing what is likely to be a relatively small claim." Barufaldi, 434 Md. at 393, 75 A.3d at 959.
Although the distinction has not been material heretofore in the reasoning in our MWPCL cases,
Yeibyo, 2008 WL 182502, at *4-5 (quoting Erie Insurance Exchange v. Heffernan, 399 Md. 598, 615, 925 A.2d 636, 646 (2007)). The Yeibyo court could not determine conclusively if it should follow lex loci delicti (if the MWPCL claim sounded in tort) or lex loci contractus (if the MWPCL claim sounded in contract) with regard to the MWPCL claim, but supposed that MWPCL claims sounded likely in contract as "employment relationships are paradigmatically contractual in nature." Yeibyo, 2008 WL 182502, at *4; see Blanch v. Chubb & Son, Inc., No. CCB-12-1965, 2014 WL 3421534, at *2 n. 4 (D.Md. Jul. 10, 2014) (noting that MWPCL claims "must have a contractual predicate").
The MWPCL makes available a cause of action to jilted employees. The causes of action under the MWPCL, like those available under the Maryland's Workers' Compensation Act, are remedial in nature, in that both provide a remedy to employees who are attempting to collect lost wages. See Johnson v. Mayor and City Council of Baltimore, 430 Md. 368, 377, 61 A.3d 33, 38 (2013) ("`[W]e recognize that the [Workers' Compensation] Act is a remedial statute.'" (citing Montgomery County v. Deibler, 423 Md. 54, 61, 31 A.3d 191, 195 (2011))).
Maryland has recognized the common law doctrine of lex loci contractus since at least 1807. See De Sobry v. De Laistre, 2 H. & J. 191, 191 (Md.1807). This doctrine requires that, when determining the construction, validity, enforceability, or interpretation of a contract, we apply the law of the jurisdiction where the contract was made. Lewis v. Waletzky, 422 Md. 647, 657 n. 8, 31 A.3d 123, 129 n. 8 (2011) ("When determining which law controls the enforceability and construction of a contract, we apply lex loci contractus."); American Motorists Ins. Co. v. ARTRA Group, Inc., 338 Md. 560, 570, 659 A.2d 1295, 1300 (1995) ("[T]he construction and validity of a contract [must] be determined by the law of the place of making of the contract."); Ward v. Nationwide Mut. Auto. Ins. Co., 328 Md. 240, 246-47, 614 A.2d 85, 88 (1992) ("[I]n deciding questions of interpretation and enforceability of contract provisions, a Maryland court ordinarily should apply the law of the jurisdiction where the contract was made. This choice of law principle is referred to as lex loci contractus."); Allstate Ins. Co. v. Hart, 327 Md. 526, 529, 611 A.2d 100, 101 (1992); Kramer v. Bally's Park Place, Inc., 311 Md. 387, 390, 535 A.2d 466, 467 (1988); Bethlehem Steel Corp. v. G.C. Zarnas and Co., 304 Md. 183, 188, 498 A.2d 605, 607 (1985). If the contract contains a choice of law provision, we apply generally the law of the specified jurisdiction. ARTRA Group, Inc., 338 Md. at 573, 659 A.2d at 1301.
We have deployed the doctrine of lex loci contractus when interpreting many kinds of contracts, but most frequently where insurance contracts were at issue. In ARTRA Group, Inc., we turned to lex loci contractus when considering the validity and interpretation of a pollution exclusion clause in an insurance contract. 338 Md. at 565-66, 659 A.2d at 1297. In Ward, we relied on the doctrine to interpret a personal injury protection benefits provision of an automobile insurance contract. 328 Md. at 242, 614 A.2d at 85. We have referred also to lex loci contractus when determining whether a California marriage contract was valid,
Lex loci contractus is not implicated in all contract-related disputes. In Erie Insurance Exchange, where an uninsured/underinsured motorist coverage provision was at issue, we applied lex loci delicti, rather than lex loci contractus, because the contract referred to substantive tort law by its terms.
In the present case, the Agreement between the parties contains no
Petitioners suggest that there are certain implied terms added to the parties' contract that implicate lex loci contractus. Petitioners note that, when construing contracts, relevant statutory requirements and standards are as much a part of a Virginia contract as if incorporated expressly by reference therein. They cite Virginia and federal cases in support of this assertion.
Petitioners highlight, in this regard, a portion of the Labor and Employment title of the Virginia Code, which addresses the time and medium of payment of wages, the withholding of wages, and the proceedings to enforce compliance, among other topics. Va.Code Ann. § 40.1-29 (West 2009). The relevant portions of that statute are as follows:
Petitioners argue that the foregoing statutory provisions should be considered part and parcel of the parties' Agreement as implied terms. The Agreement, in the Petitioners' view, thereby provides an administrative remedy in cases of withheld wages, but no private cause of action (other than a breach of contract claim). Construed as such, the dispute between the parties is one of construction of a contract's terms, and thus lex loci contractus determines that the law of Virginia should apply, to the exclusion of the MWPCL.
We are not persuaded by this argument. Rather, we agree with Feinberg that such an understanding of lex loci contractus would be an impermissibly broad application of the doctrine. We are unaware of a case in which we used lex loci contractus to import another forum's statute into a foreign contract as an implied term and then interpret the contract in light of that implied term to the exclusion of our laws and remedies. Instead, the doctrine of lex loci contractus should be understood properly to apply only to the express terms of a contract, not implied ones.
Moreover, Petitioners' argument, that we look to Virginia's law in determining whether wages were withheld improperly and, if so, the proper remedy, would lead nonetheless to an outcome unfavorable to Petitioners: the assertedly implied term of § 40.1-29 is essentially one of remedies, but under the choice of law principle lex fori, we look to the law of the forum in determining the remedy available to a plaintiff in a contract-related action, not lex loci contractus. Eastwood v. Kennedy, 44 Md. 563, 567-68 (1876); see Mike Smith Pontiac, GMC, Inc. v. Mercedes-Benz of North America, Inc., 356 Md. 542, 741 A.2d 462 (1999) (applying the rate of post-judgment interest of the lex fori (Maryland) instead of that of the judgment-rendering state); see also Traylor v. Grafton, 273 Md. 649, 668-69, 332 A.2d 651, 664 (1975) (noting that the answer to the question of whether the subject clause should be construed to provide for the payment of liquidated damages was the same under both the lex fori and the lex loci contractus). Thus even though the Agreement between the parties is a "Virginia" contract, if we embraced Petitioners' choice of law argument, the remedies available to Feinberg are determined by the law of Maryland as the lex fori.
In Himes, 178 Md.App. 504, 943 A.2d 30, the Court of Special Appeals considered a very similar factual situation to the present case, holding that Virginia employers could be subject to liability under the MWPCL in certain circumstances. The employee in Himes brought in Maryland courts a breach of contract claim and a MWPCL claim seeking to recover contractually-provided severance pay. Himes, 178 Md.App. at 512-13, 943 A.2d at 34-35. The employee, who lived in Maryland, worked for a Virginia employer and spent most of his work time in that state. Himes, 178 Md.App. at 513-15, 943 A.2d at 35-36. Anderson, the employee, was tasked with overseeing the construction of
The intermediate appellate court agreed with the employee. After noting that the scope of the term "employer" in the MWPCL depended on the meaning of the related phrase "employs an individual in the State," § 3-501(b), the court turned to the definition of "employs." Himes, 178 Md.App. at 535, 943 A.2d at 48. As defined in § 3-101, the term "employ" specifically includes "(i) allowing an individual to work; and (ii) instructing an individual to be present at a work site." The Court of Special Appeals concluded that "[t]he plain language of LE section 3-101 covers the situation in which a company outside of Maryland directs its employee to go to a work site in Maryland." Himes, 178 Md. App. at 535, 943 A.2d at 48. Because the employee attended meetings twice a month in Baltimore, the intermediate appellate court concluded that the Virginia employer must confront the employee's MWPCL claims.
The Court of Special Appeals did not consider explicitly in Himes lex loci contractus,
Id. Based on the language of the pamphlet and Himes's reading of the term "employer," the employer argued that suit should have been filed in Virginia under § 40.1-29 instead of in Maryland under the MWPCL. Id. The intermediate appellate court responded to that argument:
Himes, 178 Md.App. at 535-36, 943 A.2d at 48 (emphasis in original) (citations omitted). The Court of Special Appeals affirmed ultimately the trial court's award to the employee of treble damages, attorney's fees, and costs. Himes, 178 Md.App. at 543, 943 A.2d at 52-53. The employer petitioned for a writ of certiorari, which we denied. Himes v. Anderson, 405 Md. 291, 950 A.2d 829 (2008).
Based on our analysis of the doctrine of lex loci contractus, we come to a conclusion shared by the Court of Special Appeals: employees working for employers located in Virginia are not limited to the remedies available under Virginia's wage payment laws, but may, in certain circumstances, be answerable to claims under
Given our holding, we need not engage with Feinberg's fallback argument that the MWPCL falls within the public policy exception to the applicability of lex loci contractus. Nonetheless, we are moved to comment (at some length) on his contention because of how federal courts have examined and reached conclusions regarding this quintessentially state law question. Even if we were prepared to hold that lex loci contractus applied to this dispute in the manner in which Petitioners would have us apply the doctrine, we would be inclined not to foreclose the possibility of Feinberg recovering under the MWPCL in Maryland's courts for public policy reasons.
We have long recognized an exception to the application of lex loci contractus: we refuse to apply the doctrine when doing so would be "contrary to a strong public policy of this State." ARTRA Group, Inc., 338 Md. at 573, 659 A.2d at 1301; see Laboratory Corp. of America v. Hood, 395 Md. 608, 621, 911 A.2d 841, 848 (2006) ("We have just as consistently held, however, that the lex loci contractus principle is not inflexible and that it `does not apply to a contract provision which is against Maryland public policy.'" (citing Bethlehem Steel, 304 Md. at 188, 498 A.2d at 608)). As long ago as 1831 our predecessors determined that "[i]t is a universal principle, governing the tribunals of all civilized nations, that the lex loci contractus controls the nature, construction, and validity of the contract. The exceptions are, where it would be dangerous, against public policy, or of immoral tendency, to enforce that construction here." Trasher v. Everhart, 3 G. & J. 234, 234 (1831).
In order for Maryland's public policy to override the doctrine, it "must be very strong and not merely a situation in which Maryland law is different from the law of another jurisdiction." Hart, 327 Md. at 530, 611 A.2d at 102 (citing Kramer, 311 Md. at 390, 535 A.2d at 467); see Ward, 328 Md. at 247, 614 A.2d at 88 ("The rule of lex loci contractus is subject to a limited exception where a contractual provision or the foreign law is contrary to a very strong Maryland public policy."); Jacobs v. Adams, 66 Md.App. 779, 793, 505 A.2d 930, 937 (1986) ("We must caution that `public policy' is not a term to be bandied about lightly in every conflict of laws case. One should be well convinced of the weight of a supposed policy before advancing it against bedrock legal principles."). The requirement of showing that the public policy is sufficiently strong has
In Bethlehem Steel, we considered whether a provision of a construction contract executed in Pennsylvania was unenforceable in Maryland's courts as contrary to Maryland public policy. 304 Md. 183, 498 A.2d 605. The contract between the antagonists provided that the contractor would hold the steel plant owner harmless from any injuries suffered by the contractor or any subcontractors. Bethlehem Steel, 304 Md. at 185-86, 498 A.2d at 606. After an employee was electrocuted at the plant, the injured employee filed suit against the steel plant owner in Maryland. The plant owner filed a declaratory judgment action against Zarnas & Co., a painting company, seeking to enforce the indemnity provision. Bethlehem Steel, 304 Md. at 186, 498 A.2d at 606. The Maryland Code, in § 5-305 of the Courts and Judicial Proceedings Article, Md. Code Ann., Cts. & Jud. Proc. (1974, 1984 Repl. Vol.),
In National Glass, Inc. v. J.C. Penney Properties, Inc., a subcontractor sought, after a contractual breach, to establish a mechanics' lien for work and materials furnished at a Maryland construction site. 336 Md. 606, 608, 650 A.2d 246, 247 (1994). The contract contained a choice of law provision opting for Pennsylvania law and also waived the right to a mechanics' lien, which clause was permitted under the law of that state. Id. We noted first that Maryland's "strong public policy" exception analysis was the same in lex loci contractus cases where the parties included choice of law clauses in their contract. National Glass, 336 Md. at 613 n. 4, 650 A.2d at 250 n. 4. We turned to the language of the specific statute to determine whether our anti-waiver provision evidenced strong public policy, and held that it did. National Glass, 336 Md. at 614-15, 650 A.2d at 250. The mechanic's lien law, as it existed at the time in § 9-113 of the Real Property Article, contained a provision that stated specifically that contractual provisions made in violation of the statute were "void as against public policy of this State."
The same strong public policy analysis occurs in discussions of lex loci delicti. In Erie Insurance Exchange, the United States Court of Appeals for the Fourth Circuit certified two questions of law to us arising from a breach of contract action in which two insured individuals sought damages against their uninsured/underinsured motorist insurer. Erie Insurance Exchange, 399 Md. at 603-04, 925 A.2d at 639. The Erie Court was asked to determine whether a statutory non-economic damages "cap" represented strong public policy of Maryland. Id. We determined that Maryland's public policy reflected in the non-economic damages "cap" was not so strong as to override lex loci delicti. Erie Insurance Exchange, 399 Md. at 628, 925 A.2d at 653. Because the Maryland General Assembly had not addressed specifically the issue of the applicability of the non-economic damages "cap" to claims for uninsured/underinsured motorist damages, and had not given "an unequivocal directive to the Maryland judiciary to apply the cap in these cases," we determined that lex loci delicti applied and that Maryland's public policy as reflected in the statutory "cap" was not "sufficiently strong to warrant overriding the rule of lex loci delicti." Erie Insurance Exchange, 399 Md. at 633-34, 925 A.2d at 657; see Black v. Leatherwood Motor Coach Corp., 92 Md.App. 27, 43, 606 A.2d 295, 302-03 (1992) (holding that the existence of a "cap" on non-economic damages was not of sufficient importance to override the principle of lex loci delicti).
Anti-waiver provisions and explicit legislative language are not required always in order to reach a conclusion that a Maryland Code provision represents strong public policy. On occasion, we have given some weight to evolving public policy. In Hood, the United States District Court for the District of Maryland certified three questions of law to us, arising from a wrongful birth action by two Maryland residents against two North Carolina corporations. Hood, 395 Md. at 610, 911 A.2d at 842. Maryland recognized wrongful birth actions, but North Carolina did not. Hood, 395 Md. at 611, 911 A.2d at 842-43. The District Court needed to know ultimately whether to apply the substantive law of Maryland or of North Carolina. Id. We extrapolated from a Maryland statutory prohibition on interfering with a woman's right to terminate her pregnancy that another state's failure to recognize wrongful birth actions was contrary to the strong public policy of Maryland. Hood, 395 Md. at 624-25, 911 A.2d at 850-51. The court determined that the right to seek damages in a wrongful birth action represented "clear, strong, and important Maryland public policy," as represented in Maryland Code § 20-209(b) of the Health General Article, which precluded the State from "interfering with the decision of a woman to terminate her pregnancy at any time ... if the fetus is affected by genetic defect or serious deformity or abnormality." Id.
In Kramer v. Bally's Park Place, Inc., we considered whether a New Jersey gambling contract violated Maryland public policy such that a Maryland court should refuse to apply New Jersey law. 311 Md. 387, 535 A.2d 466. The petitioner wrote a check for $5,000, payable to Bally's Park Place, as payment of a gambling debt, but argued before us that gambling debts were
The Court of Special Appeals has looked also to changing societal mores in determining whether a strong public policy is implicated by legislative enactment. In Linton v. Linton, the intermediate appellate court engaged in an analysis to determine whether public policy would be violated by Maryland courts entertaining an inter-spousal tort action prohibited here at the time by the doctrine of inter-spousal immunity (but allowable in Virginia) pursuant to lex loci delicti. 46 Md.App. 660, 663, 420 A.2d 1249, 1251 (1980). Referencing changing perspectives in society on permitting the bringing of suits regarding inter-spousal torts, the court held that the public policy reflected in Maryland's inter-spousal immunity doctrine was not sufficiently strong to decline to entertain the suit. Linton, 46 Md.App. at 663, 667, 420 A.2d at 1251, 1253. The Court of Special Appeals revisited this question in the context of interfamilial tort suits, reiterating the reasoning of Linton in Rhee v. Combined Enterprises, Inc., 74 Md.App. 214, 223-25, 536 A.2d 1197, 1201-02 (1988).
Petitioners' brought to our attention several cases in which federal judges, applying conflict of law principles, found that a private right of action under the MWPCL was not available to employees claiming unpaid wages under contracts entered outside of Maryland. Each of these cases involved contractual choice of law clauses,
In Taylor v. Lotus Development Corp., the hearing judge determined that a choice of law provision in the parties' employment contract, electing to be governed under Massachusetts law, was enforceable to the exclusion of the MWPCL, because the MWPCL did not constitute public policy strong enough to overcome the parties' choice of law provision. Taylor v. Lotus Dev. Corp., 906 F.Supp. 290, 297-98 (D.Md.1995). That court was of the opinion that, under Maryland law, the "mere presence of dissimilar law is insufficient to render a choice-of-law provision void; rather, [the other state's] law must run contrary to a strong Maryland public policy to be unenforceable." Taylor, 906
Roughly fifteen years later, in Sedghi v. Patchlink Corp., another judge in the federal District Court of Maryland concluded that the MWPCL did not embody strong public policy, and accordingly enforced a choice of law clause opting to apply Arizona law. No. JFM-07-1636, 2010 WL 3895472, at *4 (D.Md. Sept. 30, 2010).
In Kunda v. C.R. Bard, Inc. the United States Court of Appeals for the Fourth Circuit held that the MWPCL did not express fundamental Maryland policy sufficiently enough to trump the parties' New Jersey choice of law contract provision. 671 F.3d 464, 466 (4th Cir.2011). That court determined that the MWPCL contained no express language of legislative intent nor any anti-waiver provisions. Kunda, 671 F.3d at 468. Immediately prior to the filing of the opinion in Kunda, however, House Bill 298 (2011 session), enacted by the Maryland Legislature, took effect and changed the landscape of the MWPCL by adding an anti-waiver provision of a sort to the MWPCL. See infra Op. 344-48, 107 A.3d at 1215-18. Perhaps the Fourth Circuit was unaware of this change; perhaps they determined not to assign to the change much weight.
We encourage a future Maryland Court to hold (in light of the considered dicta expressed here) that the MWPCL represents strong Maryland public policy. The anti-waiver provision and other clear indicators of legislative intent point to such a conclusion. "[D]eclaration of the public policy of the State is normally the function of the legislative branch of government; in discerning that policy, courts consider, as a
Before the anti-waiver provision was added, our case law suggested that employees could not contract away their right to be compensated for their work. In Medex, we held that "[c]ontractual language between the parties cannot be used to eliminate the requirement and public policy that employees have a right to be compensated for their efforts." Medex, 372 Md. at 39, 811 A.2d at 304. We did not have occasion in that case to discuss whether this reflected the strong public policy of our State, but we agreed with the Court of Special Appeals that "a contract conflicting with public policy set forth in a statute is invalid to the extent of the conflict between the contract and that policy." Id. (citing McCabe v. Medex, 141 Md.App. 558, 566, 786 A.2d 57, 62 (2001)).
Despite the language in Medex suggesting the importance of the policy embodied in the MWPCL, federal courts continue, it seems, to hold that the MWPCL does not apply when parties choose another state's law in a choice of law clause. See, e.g., Kunda, 671 F.3d at 468 ("[T]he Maryland Court of Appeals' decision in Medex v. McCabe fails to show that the MWPCL is a fundamental Maryland public policy...."); Lantry v. Pitney Bowes Inc., No. 08:08-CV-1273-AW, 2011 WL 3843693, at *3 (D.Md. Aug. 29, 2011)
The legislative history underlying the addition of the anti-waiver provision in 2011 indicates that its inclusion was supported by public policy considerations. The anti-waiver provision of the MWPCL originated as House Bill 298 and was introduced in the Maryland General Assembly in 2011. H.D. 298, 2011 Leg., 428th Sess. (Md. 2011). The Fiscal and Policy Note of the Bill suggested that it had no effect except to "clarif[y] current law." Dep't Legis. Serv., Fiscal & Pol'y Note, 2011-298, at 1 (Md. 2011). The term "clarifying" "sometimes can be helpful in signaling legislative intent." Johnson, 430 Md. at 389, 61 A.3d at 45. The term "can mean... that this is what lawmakers viewed as the state of the law all along." Johnson, 430 Md. at 389, 61 A.3d at 45.
The testimony of one of the Bill's sponsors, Delegate Joseline A. Peña-Melnyk, before the Senate Finance Committee, is particularly informative. She explained that employers doing business in Maryland were forcing employees to waive their MWPCL rights, either explicitly or by "applying the laws of other states to their employment relationship that provide fewer protections than the MWPCL." Wage Payment and Collection: Void Agreements: Hearing on H.B. 298 Before the H.D. Economic Matters Committee, 428th Sess. 1 (2011) (statement of Del. Joseline A. Peña-Melnyk). She named Sedghi
The interpretation of the MWPCL requires a certain appreciation of other provisions of Maryland's overall labor and employment statutory scheme:
Whiting-Turner Contracting Co. v. Fitzpatrick, 366 Md. 295, 302-03, 783 A.2d 667, 671 (2001) (citations omitted). Workers' compensation statutes, although sufficiently different from contract and tort principles so as to be considered separately, nonetheless have some affinity to both. See Hood, 395 Md. at 621, 911 A.2d at 848. In the context of workers' compensation statutes, we have at times applied a public policy exception. See Hutzell v. Boyer, 252 Md. 227, 249 A.2d 449 (1969); Hauch v. Connor, 295 Md. 120, 453 A.2d 1207 (1983). In Hutzell, we rejected the application of Virginia law which otherwise would have applied because Maryland had "a genuine interest in the welfare of a person injured within its borders" and the "social and economic problems following [the injury] ... are properly matters of public concern." Hutzell, 252 Md. at 233, 249 A.2d at 452. More recent workers' compensation cases reflect a pointed willingness by Maryland to allow itself to be a forum where the rights of employees may be vindicated to the fullest extent possible under our workers' compensation statutory scheme. For example, in Pro-Football, Inc. v. McCants, a player on the roster of the Washington NFL football team brought in Maryland a workers' compensation claim for game injuries sustained in various forums — some in Maryland, and some out of state. 428 Md. 270, 275-76, 51 A.3d 586, 589-90 (2012). McCants' employment contract contained a forum-selection clause choosing Virginia law, but we allowed McCants nonetheless to maintain a claim in Maryland for the injuries sustained here and out-of-state. McCants, 428 Md. at 288, 51 A.3d at 596-97; see Pro-Football, Inc. v. Tupa, 197 Md.App. 463, 471, 474, 14 A.3d 678, 682, 684 (2011), aff'd, 428 Md. 198, 51 A.3d 544 (2012) (holding that a player on the roster of the Washington NFL football team was a "covered employee" under § 9-203(a) of the workers' compensation statute despite working "intermittently" in Maryland playing games at FedEx Field and "primarily" in Virginia practicing).
Although significant differences exist between our workers' compensation statutory scheme and the MWPCL, we refer to these cases to make a point that Maryland is willing generally to allow itself to be used as a forum by workers seeking recovery of their wage claims. We offer no prediction as to the ultimate success or failure of Feinberg's claim, recognizing that additional facts must be found on remand before its merits may be adjudicated finally. The mere fact that Feinberg and Petitioners entered into a "Virginia" employment contract does not prohibit, however, maintenance of Feinberg's claims under the MWPCL.
ADKINS, J., concurs.
ADKINS, J.
Most respectfully, I join the judgment, but not the Majority's opinion. The Majority chooses to rest its opinion on the principle that, without a choice of law provision in the statute, "the choice of law doctrine lex loci contractus is not implicated" because this claim does "not involve the validity, enforceability, interpretation, or construction of the employment contract." Maj. Op. at 315, 107 A.3d at 1197. I think our jurisprudence would be better served by deciding this case on the more solid ground — approved by the Majority in dictum — that the MWPCL falls within the public policy exception to the applicability of lex loci contractus.
The public policy exception is soundly supported, first by the remedial terms of the MWPCL itself — including treble damages, recovery of attorneys' fees, and an anti-waiver provision — and second, by our expansive interpretation of the statute. See Peters v. Early Healthcare Giver, Inc., 439 Md. 646, 654-55, 97 A.3d 621, 626 (2014) (concluding that employees have a right to bring a private cause of action under the MWPCL to recover unlawfully withheld overtime wages); Marshall v. Safeway Inc., 437 Md. 542, 561-62, 88 A.3d 735, 746 (2014) (concluding that employees have a right to bring a private cause of action under the MWPCL to recover unlawfully withheld wages that result from miscalculating the amount of wages exempt from garnishment); Ocean City, Md., Chamber of Commerce, Inc. v. Barufaldi, 434 Md. 381, 393-94, 75 A.3d 952, 959 (2013) (stating that courts should exercise their discretion liberally in favor of awarding employees reasonable attorneys' fees under the MWPCL); Medex v. McCabe, 372 Md. 28, 37, 811 A.2d 297, 302-03 (2002) (concluding that incentive fees are "wages" under the MWPCL).
The MWPCL covers "any person who employs an individual in the State." Md. Code (1991, 2008 Repl. Vol.), § 3-501 of the Labor & Employment Article. The statute's broad terms leave no doubt that the General Assembly enacted this law with serious purpose that amounts to a firm statement of public policy. This case presents a perfect opportunity to make a clear ruling that an employee who lives and works in Maryland is entitled to the remedial benefits of the MWPCL, notwithstanding the doctrine of lex loci contractus. I would decide this case on that ground.
The Court of Special Appeals in Himes gave no weight to the residency of the employee nor where the contract had been signed. 178 Md.App. 504, 532-36, 943 A.2d 30, 46-49 (2008). Indeed, the opinion does not note where the employee signed the written employment agreement, but does say that a draft was sent to the employee at his home in Annapolis and that he executed it shortly after receiving it. Himes, 178 Md. at 513, 943 A.2d at 35. Those two facts were relevant only to questions of the Maryland court's personal jurisdiction over the parties. Himes, 178 Md.App. at 524-32, 943 A.2d at 41-46. As to the question of work time spent by Anderson in Maryland, the Court of Special Appeals did not highlight other points of connection that the employee had with Maryland, including the projects that he worked on in Gaithersburg and Aberdeen. The intermediate appellate court thought apparently that the Baltimore meetings alone were enough to warrant liability under the MWPCL. See Himes, 178 Md.App. at 535, 943 A.2d at 48 ("Anderson had to attend meetings twice a month at Lockheed Martin's Baltimore office, in the State of Maryland. On that evidence alone, Himes was an `employer' under the MWPCL, and therefore was subject to liability for violating it."). Finally, the parties disputed the severance package due the employee under the employment contract, which did not appear to be connected specifically to the employee's Maryland work, as opposed to work performed in Virginia or other states. Himes, 178 Md.App. at 513, 943 A.2d at 35.
More recently, in Erie Insurance Exchange, we were asked to abandon lex loci contractus' cousin, lex loci delicti, which requires essentially that we apply the law of the state in which a tort occurred, with some exceptions. 399 Md. at 624, 925 A.2d at 651. We declined to do so. Erie Ins. Exchange, 399 Md. at 625, 925 A.2d at 651.
Kunda, 671 F.3d at 468.