This case implicates the privacy rights of Los Angeles County (County) employees who are not union members and their ability to control the dissemination of their personal information to the Service Employees International
The trial court concluded the Commission erred by applying the traditional labor law presumption in favor of disclosure. Nevertheless, the trial court upheld the Commission's decision to disclose the nonmembers' personal information under California privacy law, applying the balancing test set forth in Hill v. National Collegiate Athletic Assn. (1994) 7 Cal.4th 1, 39-40 [26 Cal.Rptr.2d 834, 865 P.2d 633] (Hill). The trial court, however, ordered disclosure of the nonmembers' personal information without due consideration to procedural protections afforded to third parties whose privacy rights are at stake. (See Pioneer Electronics (USA), Inc. v. Superior Court (2007) 40 Cal.4th 360, 371-372 [53 Cal.Rptr.3d 513, 150 P.3d 198] (Pioneer Electronics).)
In this case of first impression, we conclude nonmember County employees who have not disclosed their personal information to the Union are entitled to notice and an opportunity to object before disclosure. When third party information has been ordered disclosed in civil litigation, our Supreme Court recognizes that privacy notices and opt-out procedures sufficiently strike a balance between the right to the information and the rights of third parties to control the dissemination of their personal information. Nonmember County employees, like those unwillingly thrust into litigation, are entitled to these same procedural protections. County employees have a reasonable expectation that the personal information they provide to their employer will remain confidential and not be disseminated without notice. These employees do not forfeit their privacy rights by accepting employment with a public agency whose employees have a collective right to unionize but an individual right not to join. We therefore reverse and remand to the trial court with directions to enter a new order denying the petition but directing the County to give nonmember County employees notice and an opportunity to object before disclosure of their personal information to the Union.
During collective bargaining, the Union asked the County for the personal information of County employees in the bargaining unit who are not Union members. The County refused. The Union filed an unfair employee-relations practice charge with the Commission in which it contended the County violated sections 12, subdivision (a)(3) and 15
The Union is the certified majority representative for several bargaining units in the County. County employees have the collective right to unionize, but the individual right to refuse to join or participate in a union. (Gov. Code, § 3502; L.A. County Code, § 5.04.070.) As an accommodation of these rights, a public agency may enter into an agency-shop agreement with a major bargaining unit. (Gov. Code, § 3502.5, subd. (a).) "`[A]gency shop' means an arrangement that requires an employee, as a condition of continued employment, either to join the recognized employee organization or to pay the organization a service fee in an amount not to exceed the standard initiation fee, periodic dues, and general assessments of the organization." (Ibid.)
The memorandum of understanding (MOU) between the Union and the County is an agency-shop agreement. County employees who do not want to join the Union have three options: (1) decline to join and pay their fair-share fee; (2) decline to join, object to the fair-share fee and instead pay an agency-shop fee; or (3) decline to join, claim a religious exemption, and pay the agency-shop fee to a nonreligious, nonlabor charitable fund.
The Hudson notice packet includes a solicitation letter to join the Union and forms to decline to join. Those County employees who affirmatively decline to join the Union must complete and return one of the two forms attached to the Hudson notice ("agency shop fee designation" or "statement of religious objections"). These forms request the County employees' name, home address, and home telephone number. County employees who do not respond are by default "fair share fee payers." As of 2007, fair-share-fee payers represented approximately 11,000 of the 14,512 nonmember County employees. The Union has home addresses and home telephone numbers for less than half of these nonmembers.
During negotiations in 2006, the Union proposed a change in article 15, section 7 of the MOU, addressing the obligation to provide Hudson notices. The proposed change stated: "To facilitate the carrying out of this responsibility, each year the County shall furnish the Union with the names and home addresses of employees in [the] bargaining units covered by agency shop provisions."
The Union wanted the personal information to communicate with the members of the bargaining unit about union activities, layoffs, and other job-related activities. The Union also wanted the information for recruitment. A Union representative testified: "If we had the chance to talk to [the nonmembers], we could have them as members, as opposed to fee payers or whatever."
The Union alleged it needed the personal information of nonmember County employees to fulfill its representation duties. The unfair employee-relations practice charge claimed both the National Labor Relations Board (NLRB) and the state's Public Employee Relations Board (PERB) have consistently ruled certified representatives of employees are entitled to the personal information of nonmembers who are part of the bargaining unit.
After a three-day hearing, the administrative hearing officer recommended to the Commission that it order the County to disclose to the Union the personal information of nonmember County employees. Recognizing this was a case of first impression, the hearing officer relied on NLRB and PERB decisions. Based upon this precedent, the hearing officer concluded nonmember County employees' personal information was presumptively relevant to the Union's representation, and the Union had a right to the information.
The hearing officer rejected the County's defense that the disclosure of nonmembers' personal information would violate their privacy rights. The hearing officer acknowledged privacy interests were at stake, and relied on federal law in which the party asserting the privacy right has the burden to show the need for privacy outweighs the need for the information. Citing Teamsters Local 517 v. Golden Empire Transit District (2004) PERB Decision No. 1704-M (Golden Empire Transit), the hearing officer concluded the County had not met its burden.
The County filed a petition for writ of mandamus (Code Civ. Proc., § 1094.5), seeking relief from the Commission's decision on the grounds that disclosure of nonmembers' personal information violates their right to privacy under California law. The trial court agreed the Commission erred but denied the petition.
The trial court concluded the Commission misapplied the law and should have decided the issue under California privacy law.
Having concluded the nonmembers' right to privacy, the trial court considered the Union's competing interest to represent all County employees for purposes of collective bargaining. The labor law cases, according to the trial court, established a public policy in favor of the Union's right to communicate with all represented employees. On balance, the trial court concluded the public policy interests favoring collective bargaining outweighed any privacy interest nonmember County employees might have in nondisclosure. Thus, disclosure of the personal information of nonmember County employees did not violate California law.
The County timely appealed from the judgment entered following the denial of the petition.
We must determine whether a County employee who is not a Union member has a reasonable expectation under California privacy laws that he or she will be provided notice and an opportunity to object before the County discloses his or her personal information to the Union. This is a legal question when, as here, the facts are undisputed. (Pioneer Electronics, supra, 40 Cal.4th at pp. 370-371.) On legal issues, the trial court was required to exercise its independent judgment, while examining the administrative record for any errors of law committed by the Commission. (See Fukuda v. City of Angels (1999) 20 Cal.4th 805, 810-811 [85 Cal.Rptr.2d 696, 977 P.2d 693]; McAllister v. California Coastal Com. (2008) 169 Cal.App.4th 912, 921-922 [87 Cal.Rptr.3d 365].) On appeal, we are not bound by any legal interpretation of the trial court. Instead, we make an independent review of any questions of law necessary to the resolution of this matter on appeal. (Union of American Physicians & Dentists v. Los Angeles County Employee Relations Com. (2005) 131 Cal.App.4th 386, 397 [32 Cal.Rptr.3d 547].)
"The text of the Privacy Initiative does not define `privacy.' The Ballot Argument in favor includes broad references to a `right to be left alone,' calling it a `fundamental and compelling interest,' and . . . include[s] . . . `our homes, our families, our thoughts, our emotions, our expressions, our personalities, our freedom of communion, and our freedom to associate with the people we choose.' [Citation.]" (Hill, supra, 7 Cal.4th at pp. 20-21.) As discussed in White v. Davis (1975) 13 Cal.3d 757 [120 Cal.Rptr. 94, 533 P.2d 222], the argument in favor of the amendment stated: "`Fundamental to our privacy is the ability to control circulation of personal information. [Italics in original.] This is essential to social relationships and personal freedom. The proliferation of government and business records over which we have no control limits our ability to control our personal lives. Often we do not know that these records even exist and we are certainly unable to determine who has access to them.'" (Id. at p. 774.) One of the points that emerged from the arguments in favor of the Privacy Initiative was the "improper use of information properly obtained for a specific purpose, for example, the use of it for another purpose or the disclosure of it to some third party . . . ." (White, at p. 775.) This right to informational privacy that is reflected in our state Constitution also is reflected in our state laws, which regulate the dissemination of personal information. (See, e.g., Civ. Code, § 1798 et seq. [the Information Practices Act of 1977].)
The Pioneer Electronics court focused on the requisite notice and opportunity to object that should accompany a precertification communication to members of a putative consumer class before disclosure of personal information. The class representative sought discovery of third party customer information from the company. (Pioneer Electronics, supra, 40 Cal.4th at p. 364.) They requested the names and contact information of those customers who wrote to Pioneer Electronics to complain about the product at issue in the lawsuit. (Ibid.) Pioneer Electronics refused to disclose the customer information, asserting their customers' right to privacy. (Ibid.) The trial court ordered disclosure but required Pioneer Electronics to inform customers and give them a right to object. (Id. at pp. 365-366.) The Court of Appeal concluded the notice provision should have been an opt-in notice in which the customers affirmatively consented to disclosure. (Id. at pp. 369-370.)
The Supreme Court agreed with the trial court that an opt-out notice was sufficient to protect the privacy interests of the third party customers. (Pioneer Electronics, supra, 40 Cal.4th at pp. 372-373.) The complaining customers had a reduced expectation of privacy in the information they voluntarily disclosed to Pioneer Electronics. (Id. at p. 372.) Moreover, these complaining customers presumably would want their personal information disclosed to a class plaintiff who might help them obtain the relief they sought from Pioneer Electronics. (Ibid.) Nevertheless, before disclosure, the company had to give customers notice and an opportunity to object to the release of their personal information. (Id. at p. 373.) Thus, there was no serious invasion of privacy "given that the affected persons readily may submit objections if they choose." (Id. at p. 372.)
As the Pioneer Electronics court noted, it required similar procedural safeguards in Valley Bank of Nevada v. Superior Court (1975) 15 Cal.3d 652 [125 Cal.Rptr. 553, 542 P.2d 977], which addressed the disclosure of non-party financial information. (Id. at pp. 654-655.) While this information is discoverable in a proper case, a bank customer's reasonable expectation is that, absent compulsion by legal process, the matters he or she reveals to the bank will be used by the bank for internal bank purposes. (Id. at p. 657.)
This notice and opt-out procedure is not limited to the disclosure of financial or consumer information, but also has been applied in the employment context when nonparty information is sought during discovery. (See Alch v. Superior Court (2008) 165 Cal.App.4th 1412, 1416, 1418 [82 Cal.Rptr.3d 470] [privacy notice sent to nonparty writers];
We recognize not all compelled disclosure warrants procedural safeguards. But these cases generally fall into two categories—nonparty, percipient witnesses whose identity was previously disclosed and have no right to object to disclosure (Puerto v. Superior Court (2008) 158 Cal.App.4th 1242, 1248-1249, 1251-1252, 1256-1257 [70 Cal.Rptr.3d 701]), and putative class members (Crab Addison, Inc. v. Superior Court (2008) 169 Cal.App.4th 958, 969, 974 [87 Cal.Rptr.3d 400]; Lee v. Dynamex, Inc. (2008) 166 Cal.App.4th 1325, 1336-1337 [83 Cal.Rptr.3d 241]). For these putative class members, there is an assumption that they want their information disclosed because the class action involves a vindication of their statutory rights (Crab Addison, supra, at pp. 972-973). A similar assumption is expressed in Pioneer Electronics, but even when the complaining customers might reasonably expect disclosure or "hope" for disclosure, these customers were entitled to
The notice and opt-out procedure used in Pioneer Electronics and appropriate here does not deprive the Union of its right to the information, but simply recognizes that before disclosure, the holder of the information (the County) must inform nonmember County employees whose privacy interests are at stake. Individual nonmember County employees will have an opportunity to object, and if the Union seeks to challenge the objection, as was the case in Alch v. Superior Court, supra, 165 Cal.App.4th at pages 1419-1420, it may do so before the Commission, which will weigh the interests of the Union and the person whose privacy interest is at stake. At the end of the day, the Union will be able to communicate directly with those nonmembers who do not opt out (or whose objections have been overruled) and will no longer be required to communicate to nonmembers through annual Hudson notices.
This opt-out notice procedure does not provide an unfair advantage to the County or a disadvantage to the Union in collective bargaining matters. (See Pioneer Electronics, supra, 40 Cal.4th at p. 374.) Rather, it recognizes the previously overlooked individual rights of the County employees. If, as the Union represented during oral argument, nonmember County employees will not respond to the opt-out notice, the Union will obtain the personal information it wants and will do so in accordance with California's privacy laws. In sum, we conclude before the County discloses the personal information of nonmember County employees, it must give them notice and an opportunity to object.
The superior court's order denying the petition is reversed and remanded with directions to enter a new order denying the petition and directing the County and Union to meet and confer on a proposed notice for the trial
Klein, P. J., and Croskey, J., concurred.
Section 15, codified as section 5.04.060, subdivision A. of the Los Angeles County Code states: "To facilitate negotiations, the county shall provide to certified employee organizations concerned the published data it regularly has available concerning subjects under negotiation, including data gathered concerning salaries and other terms and conditions of employment provided by comparable public and private employers, provided that when such data is gathered on a promise to keep its source confidential, the data may be provided in statistical summaries but the sources shall not be revealed."