Plaintiff sued his former employer under the California Fair Employment and Housing Act (FEHA; Gov. Code, § 12900 et seq.), alleging that defendant employer failed to reasonably accommodate his physical disability and refused to rehire him in retaliation for plaintiff's having filed a workers' compensation claim. Thereafter, defendant learned of information suggesting that plaintiff, to gain employment with defendant, had used another man's Social Security number.
The trial court denied defendant employer's motion for summary judgment. When defendant sought a writ of mandate in the Court of Appeal, that court issued an alternative writ. In response, the trial court vacated its order denying defendant's motion for summary judgment, and it entered an order granting the motion. Plaintiff employee appealed from the ensuing judgment, which the Court of Appeal affirmed. It held that plaintiff's action was barred by the doctrines of after-acquired evidence and unclean hands (based on information defendant acquired during discovery showing wrongdoing by plaintiff), and that here application of those doctrines was not precluded by Senate Bill No. 1818 (2001-2002 Reg. Sess.) (Senate Bill No. 1818), enacted in 2002 (Stats. 2002, ch. 1071, pp. 6913-6915). That state law declares: "All protections, rights, and remedies available under state law, except any reinstatement remedy prohibited by federal law, are available to all individuals regardless of immigration status who have applied for employment, or who are or who have been employed, in this state." (Stats. 2002, ch. 1071, § 1, p. 6914, italics added.)
Because this case arises from an order granting summary judgment to a defendant, we briefly set forth the governing principles. A trial court should grant a defendant's motion for summary judgment if no triable issue exists as to any material fact and the defendant is entitled to a judgment as a matter of law. On appeal, we review the matter independently, resolving in the plaintiff's favor any doubts regarding the propriety of summary judgment. (Elk Hills Power, LLC v. Board of Equalization (2013) 57 Cal.4th 593, 605-606 [160 Cal.Rptr.3d 387, 304 P.3d 1052].)
Defendant Sierra Chemical Co. manufactures, packages, and distributes chemicals for treating water, including water in swimming pools. As the weather gets warmer in spring and summer, consumer demand for defendant's products increases, while in fall and winter demand decreases, which in turn results in defendant's seasonal layoffs of many production line employees. Those laid-off workers generally are recalled to work when consumer demand rises.
In April 2003, plaintiff Vicente Salas applied for a job with defendant, providing a Social Security number and a resident alien card. He completed and signed, under penalty of perjury, federal Immigration and Naturalization form I-9, in which he listed the same Social Security number he had given to defendant, and he attached to the form a copy of a Social Security card with that number. He also signed an employee's Internal Revenue Service withholding form W-4, which had the same Social Security number he had given defendant. In May 2003, plaintiff began working on defendant's production line.
In October 2003, plaintiff was laid off because of defendant's seasonal reduction of production line workers. In March 2004, when plaintiff was called back to work, he used the same Social Security number as before, and the same number again appeared on federal I-9 and W-4 forms he completed. In December 2004, plaintiff was again laid off. When he was recalled to work in March 2005, the federal W-4 form he signed had the same Social Security number he had provided earlier. Plaintiff was not laid off during the fall and winter of 2005.
In late 2004 or early 2005, plaintiff received a letter from the federal Social Security Administration stating that his name and Social Security number did not match the agency's records. Some of his coworkers received similar letters. Plaintiff asserts that a few days later defendant's production manager, Leo Huizar, told the workers not to worry about discrepancies with Social Security numbers because as long as the company's president was satisfied with their work they would not be terminated.
On August 16, 2006, plaintiff again injured his back while stacking crates and was taken to the hospital. That same day he returned to work, finishing his shift under the same work restrictions as before. Thereafter, plaintiff filed a workers' compensation claim for his workplace back injury. Plaintiff still came to work, performing modified duties, until December 15, 2006, when he was laid off during defendant's seasonal reduction of workers.
In either late January or early February of 2007, plaintiff started working for another company. According to plaintiff's declaration filed in opposition to defendant employer's motion for summary judgment, Leo Huizar, defendant's production manager, telephoned him in March 2007. Huizar asked plaintiff if he wanted to return to work and if he had fully recovered from his back injuries. When plaintiff said he was still seeing a doctor, Huizar responded that plaintiff could "not return to work like that," adding it would violate defendant employer's policies to do so.
On May 1, defendant sent plaintiff a letter stating that it was recalling laid-off employees and informing him to call or come to defendant's office to make arrangements to return to work. The letter also told him to bring "a copy of your doctor's release stating that you have been released to return to full duty."
According to Huizar's declaration in support of defendant's motion for summary judgment, plaintiff contacted Huizar on May 6, 2007, and said that he had not reported for work as he had not yet been released by his physician but that he had an appointment on June 12 to obtain the release. Huizar then agreed to hold the job open for plaintiff until plaintiff obtained the doctor's release, and Huizar told plaintiff to call him if plaintiff was unable to get the release. Huizar never heard from plaintiff again.
In August 2007, plaintiff sued defendant. Plaintiff alleged two causes of action. The first cause of action alleged that plaintiff was disabled and that defendant failed to provide reasonable accommodations for his disability, in violation of California's FEHA. The second cause of action alleged that defendant wrongfully denied plaintiff employment, in violation of the public
After trial was set for April 9, 2009, both parties filed motions in limine. In one of his motions, plaintiff employee acknowledged that it is a criminal offense under federal law (18 U.S.C. § 1546(b)(2)) and a felony under state law (Pen. Code, § 114) for a person to use false identification documents to conceal the person's true citizenship or resident alien status. Plaintiff stated that he would testify at trial and assert his privilege against self-incrimination under the Fifth Amendment to the United States Constitution if asked about his immigration status. He asked that he be allowed to assert the privilege outside the jury's presence and that the court and counsel not comment at trial on his assertion of the privilege. This information led defendant employer to investigate the authenticity of the documents plaintiff had given to defendant in connection with plaintiff's employment by defendant.
On July 24, 2009, defendant filed a motion for summary judgment, which is at issue here. Defendant sought a determination by the trial court that defendant was entitled to a judgment as a matter of law under the legal doctrines of after-acquired evidence and unclean hands, based on plaintiff's fraudulent use of another person's Social Security number and card to obtain employment with defendant. In support, defendant submitted a declaration from Kelly R. Tenney saying that he is a resident of North Carolina and has a certain Social Security number, which is the one plaintiff used when he applied for a job with defendant. Tenney said in his declaration that he did not know plaintiff and had given no one permission to use his Social Security number. Defendant also provided a declaration from its president, Stanley Kinder, stating that defendant has a long-standing policy of not hiring anyone who is prohibited by federal law from working in the United States, and that defendant would immediately discharge any employee upon defendant's discovery that the employee had given defendant false information or documents to establish work eligibility in the United States.
When the trial court denied defendant employer's motion for summary judgment, defendant sought a writ of mandate from the Court of Appeal. When that court issued an alternative writ, the trial court vacated its earlier order denying defendant's motion and entered a new order granting the motion. Plaintiff appealed from the ensuing judgment, which the Court of Appeal affirmed. The Court of Appeal concluded that plaintiff's claims were barred by both the doctrine of after-acquired evidence and the doctrine of unclean hands.
The threshold inquiry here is whether the federal Immigration Reform and Control Act of 1986 (8 U.S.C. § 1101 et seq.), also known as IRCA, preempts application of the antidiscrimination provisions of California's FEHA to workers who are unauthorized aliens.
The California law at issue here is not only the FEHA, but also Senate Bill No. 1818, which added to California's statutory scheme four nearly identical provisions: Civil Code section 3339, Government Code section 7285, Health and Safety Code section 24000, and Labor Code section 1171.5.
The California Legislature enacted Senate Bill No. 1818 in 2002 in response to the United States Supreme Court's decision earlier the same year in Hoffman Plastic Compounds, Inc. v. NLRB (2002) 535 U.S. 137 [152 L.Ed.2d 271, 122 S.Ct. 1275] (Hoffman). (See Sullivan v. Oracle Corp. (2011) 51 Cal.4th 1191, 1197, fn. 3 [127 Cal.Rptr.3d 185, 254 P.3d 237].) In Hoffman, the National Labor Relations Board (NLRB) had determined that an employer violated the National Labor Relations Act (NLRA; 29 U.S.C. § 151 et seq.) by selecting four employees for layoffs because they had supported a union's organizing activities. One of those employees, Jose Castro, testified at the administrative hearing that he was illegally in the United States and had used a friend's birth certificate to obtain a California driver's license and a federal Social Security card, enabling Castro to obtain employment before and after the layoff. (Hoffman, at p. 141.) The NLRB awarded Castro backpay plus interest from the date he was laid off until the date the employer first learned of Castro's undocumented status, a period of four and one-half years. (Id. at pp. 141-142.) The federal court of appeals upheld the NLRB's award. The United States Supreme Court reversed. It said that the NLRB could not "award backpay to an illegal alien for years of work not performed, for wages that could not lawfully have been earned, and for a job obtained in the first instance by a criminal fraud." (Id. at p. 149.) "[A]warding backpay to illegal aliens," the high court held, "runs counter to policies underlying" the Immigration Reform and Control Act of 1986. (Hoffman, at p. 149.)
Turning to the first type of preemption — express preemption — we note that the federal Immigration Reform and Control Act of 1986 has an express preemption provision, which states: "The provisions of this section preempt any State or local law imposing civil or criminal sanctions (other than through licensing and similar laws) upon those who employ ... unauthorized aliens." (8 U.S.C. § 1324a(h)(2), italics added.) We agree with plaintiff employee that this provision is inapplicable here. Rather than asserting any claim of employer wrongdoing in hiring unauthorized aliens, plaintiff seeks in this lawsuit to impose civil sanctions upon defendant employer for alleged violations of California's FEHA, which prohibits invidious employment discrimination. Accordingly, the relevant federal immigration law does not expressly preempt California's provisions, enacted by Senate Bill No. 1818, granting state employment law protections to all workers "regardless of immigration status."
At the time of De Canas, federal immigration law expressed at best "a peripheral concern with employment of illegal entrants." (De Canas, supra, 424 U.S. at p. 360, fn. omitted.) That changed 10 years after the high court's 1976 De Canas decision, when Congress enacted the Immigration Reform and Control Act of 1986. That law, with its focus on employment of unauthorized aliens, "`forcefully' made combating the employment of illegal aliens central to `[t]he policy of immigration law.'" (Hoffman, supra, 535 U.S. at p. 147, quoting INS v. National Center for Immigrants' Rights, Inc. (1991) 502 U.S. 183, 194 & fn. 8 [116 L.Ed.2d 546, 112 S.Ct. 551].) The question before us is this: Has federal immigration regulation now become so pervasive as to leave no room for state employment laws that extend antidiscrimination protections with lost pay remedies to employees who are unauthorized aliens?
The high court has recently pointed out, as noted earlier, that the states' historic police powers are not preempted "`unless that was the clear and manifest purpose of Congress'" (Arizona v. United States, supra, 567 U.S. at p. ___ [132 S.Ct. at p. 2501]), and it has acknowledged that regulation of the employment relationship is within the states' police powers (De Canas, supra, 424 U.S. at p. 356). The parties here have not cited, nor has our research disclosed, evidence of a clear and manifest purpose by Congress to occupy the field of immigration regulation so completely as to preclude the states from applying to unauthorized aliens the states' own worker protection labor and employment laws. A conclusion that Congress has occupied the field would dramatically affect state laws such as those regulating workers' compensation, minimum wages, working hour limits, and worker safety. We therefore conclude that the federal regulation imposed by the Immigration Reform and Control Act of 1986 is not so pervasive as to leave no room for any state law on the same subject.
We first consider the postdiscovery period. Because under federal immigration law an employer may not continue to employ a worker known to be ineligible (8 U.S.C. § 1324a(a)(2)), any state law award that compensates an unauthorized alien worker for loss of employment during the postdiscovery period directly conflicts with the federal immigration law prohibition against continuing to employ workers whom the employer knows are unauthorized aliens. Such an award would impose liability on the employer for not performing an act (continuing to employ a worker known to be an unauthorized alien) expressly prohibited by federal law.
Far less stringent, however, is federal immigration law's approach to unauthorized alien workers. Although Congress made it a crime for an unauthorized alien to use false documents to obtain employment (18 U.S.C. § 1546(b)), Congress did not impose criminal sanctions on unauthorized aliens merely for seeking or engaging in unauthorized work. As the high court recently pointed out, "Congress made a deliberate choice not to impose criminal penalties on aliens who seek, or engage in, unauthorized employment," as this "would be inconsistent with federal policy and objectives." (Arizona v. United States, supra, 567 U.S. at p. ___ [132 S.Ct. at p. 2504].)
Plaintiff employee challenges the Court of Appeal's holdings that the doctrines of after-acquired evidence and unclean hands are complete defenses to plaintiff's action against defendant employer. Before addressing plaintiff's challenges, we consider whether the Legislature, when it enacted Senate Bill No. 1818, adopted the reasoning of two Court of Appeal decisions addressing the application of those doctrines in employment termination cases.
The California Legislature enacted Senate Bill No. 1818 in 2002. As we have noted (see ante, at p. 419), that law was a direct response to the high court's 2002 decision in Hoffman, supra, 535 U.S. 137, to ensure that in California unauthorized alien workers would continue to have the same protections and remedies (apart from reinstatement when prohibited by federal law) afforded other workers under California's employment and labor laws. The 2002 legislation, the Legislature said at the time of enactment, is "declaratory of existing law." (Civ. Code, § 3339, subd. (c); Gov. Code, § 7285, subd. (c); Health & Saf. Code, § 24000, subd. (c); Lab. Code, § 1171.5, subd. (c).) Focusing on this just-quoted language, the Court of Appeal here relied on two Court of Appeal decisions in existence at the time of the 2002 legislation's enactment: the 1995 decision in Camp v. Jeffer, Mangels, Butler & Marmaro (1995) 35 Cal.App.4th 620 [41 Cal.Rptr.2d 329] (Camp), and the 1998 decision in Murillo v. Rite Stuff Foods, Inc. (1998) 65 Cal.App.4th 833 [77 Cal.Rptr.2d 12] (Murillo). The Court of Appeal here read Camp and Murillo broadly as creating a complete defense based on after-acquired evidence, a view that, according to the Court of Appeal, the Legislature had adopted in enacting Senate Bill No. 1818.
We are not persuaded by the Court of Appeal's reasoning on this point. Why would the Legislature have focused only on those two Court of Appeal decisions (which provided support for the Court of Appeal's holding here on the issue of after-acquired evidence) while ignoring another Court of Appeal decision, Cooper v. Rykoff-Sexton, Inc. (1994) 24 Cal.App.4th 614 [29 Cal.Rptr.2d 642], which held that after-acquired evidence was not a defense to a wrongful termination action alleging age discrimination?
Lacking is any indication that when the California Legislature enacted Senate Bill No. 1818 in 2002, it intended to endorse or codify the decisions
We now consider the applicability here of the doctrine of after-acquired evidence.
Here, plaintiff sued his employer for allegedly violating California's FEHA. During the litigation, defendant employer obtained information suggesting that plaintiff had used another person's Social Security number to obtain employment with defendant. The Court of Appeal agreed with defendant that the after-acquired evidence completely barred plaintiff's claims. Plaintiff challenges that holding, arguing that it fails to give effect to the strong public policies contained in the FEHA.
Pertinent here is the high court's decision in McKennon v. Nashville Banner Publishing Co. (1995) 513 U.S. 352 [130 L.Ed.2d 852, 115 S.Ct. 879] (McKennon), which was cited by both parties and the Court of Appeal. At issue in McKennon was whether after-acquired evidence provided a complete
McKennon observed that the federal ADEA sought to eliminate discrimination in the workplace and that a private litigant seeking redress vindicates the ADEA's important public policy against discriminatory employment practices. McKennon reasoned that allowing after-acquired evidence to completely bar relief in such cases would be inconsistent with the federal statutory scheme and would impair the efficacy of the ADEA's enforcement mechanism. (McKennon, supra, 513 U.S. at pp. 358-359.)
It does not follow, however, that the doctrine of after-acquired evidence has no bearing on employment discrimination and retaliation claims brought under California's FEHA. As the high court observed in McKennon, "the lawful prerogatives of the employer in the usual course of its business and the corresponding equities that it has arising from the employee's wrongdoing" are entitled to recognition. (McKennon, supra, 513 U.S. at p. 361.) In after-acquired evidence cases, therefore, both the employee's rights and the employer's prerogatives deserve recognition. The relative equities will vary from case to case, depending on the nature and consequences of any wrongdoing on either side, a circumstance that counsels against rigidity in fashioning appropriate remedies in those actions where an employer relies on after-acquired evidence to defeat an employee's FEHA claims.
Generally, the employee's remedies should not afford compensation for loss of employment during the period after the employer's discovery of the evidence relating to the employee's wrongdoing. When the employer shows that information acquired after the employee's claim has been made would have led to a lawful discharge or other employment action, remedies such as reinstatement, promotion, and pay for periods after the employer learned of such information would be "inequitable and pointless," as they grant remedial
The remedial relief generally should compensate the employee for loss of employment from the date of wrongful discharge or refusal to hire to the date on which the employer acquired information of the employee's wrongdoing or ineligibility for employment.
Here, the trial court initially denied defendant employer's motion for summary judgment because of a triable issue of material fact as to whether defendant employer continued to employ plaintiff worker after being put on notice that his name did not match the Social Security number he had provided. The Court of Appeal concluded there was no triable issue of fact because a mere mismatch could have an innocent explanation and was not necessarily inconsistent with the evidence that defendant employer had a settled policy of refusing to hire applicants who submitted false Social Security numbers.
Equitable defenses such as unclean hands may not, however, be used to wholly defeat a claim based on a public policy expressed by the Legislature in a statute. (See Cortez v. Purolator Air Filtration Products Co. (2000) 23 Cal.4th 163, 179 [96 Cal.Rptr.2d 518, 999 P.2d 706]; Mendoza v. Ruesga, supra, 169 Cal.App.4th at pp. 279-280; 13 Witkin, Summary of Cal. Law, supra, Equity, § 3, p. 285, § 15, p. 301.) Nevertheless, equitable considerations may guide the court in fashioning relief in cases involving a legislatively expressed public policy. This court recognized that when it stated in Angelucci v. Century Supper Club (2007) 41 Cal.4th 160, 179 [59 Cal.Rptr.3d 142, 158 P.3d 718]: "Although equitable principles may not be applied in opposition to statutory enactments or to defeat public policy established by the Legislature [citations], such principles have been applied to reduce ordinary tort damages imposed for violation of antidiscrimination laws. [Citations.]"
Accordingly, the Court of Appeal here erred in treating the doctrine of unclean hands as a complete defense to plaintiff's lawsuit, an action founded upon public policies established by the Legislature in the FEHA.
The judgment of the Court of Appeal is reversed, with directions to remand the matter to the trial court for further proceedings consistent with this opinion.
Cantil-Sakauye, C. J., Werdegar, J., Corrigan, J., and Liu, J., concurred.
Though with some reservation, I am willing to assume, without deciding, that the majority correctly analyzes how the state law doctrine of after-acquired evidence should apply,
However, I disagree with the majority's holding on the separate issue of federal preemption. The majority concludes that federal immigration law preempts an award to an alien employee of "lost wage damages"
However, the limited record before us does not allow a final application of my legal conclusions to the facts that may or may not exist in this case. Most significantly, while it seems clear plaintiff knowingly submitted a false Social Security card and number when applying for work with defendant, the summary judgment motion failed to establish whether plaintiff is, in fact, an alien ineligible under federal immigration law to be employed in the United States. Accordingly, further litigation of these matters is necessary. Moreover, even if plaintiff is an unauthorized alien who committed immigration fraud to obtain his job, he may still not be preempted from pursuing nonwage remedies for defendant's wrongful conduct, if any, under FEHA. I therefore agree with the majority that defendant's motion for summary judgment should not have been granted. I explain my conclusions below.
In 2006, plaintiff hurt his back while on the job for defendant. Thereafter, defendant failed to recall him for the 2007 season. He sued defendant, alleging that, in violation of FEHA, defendant had refused to rehire him in retaliation for his filing of a worker's compensation claim, and to avoid accommodating his physical disability. Plaintiff sought various forms of monetary recovery, including lost wages.
In the course of pretrial motions, plaintiff acknowledged that it is a state and federal felony, when applying for employment, to use false identification documents to conceal one's true citizenship or resident alien status (18 U.S.C. § 1546(b)(2); Pen. Code, § 114). He stated he intended to testify at trial, and would assert his privilege against compelled self-incrimination if asked about his immigration status. This led defendant to investigate the authenticity of the documents plaintiff had submitted to obtain the job.
Defendant subsequently moved for summary judgment, invoking the doctrines of after-acquired evidence and unclean hands. Defendant asserted that its discovery of plaintiff's fraudulent use of another person's Social Security number entitled it to dismissal of plaintiff's suit as a matter of law.
In support of the motion, defendant submitted evidence that the Social Security number provided by plaintiff belonged to Kelly R. Tenney, a North Carolina resident, who stated that he did not know plaintiff and had given no one permission to use the number. Defendant also submitted the declaration of its president, stating that the company had a long-standing policy of refusing to hire persons who are not legally authorized to work in the United States, and would immediately discharge any employee upon discovering the worker had provided false documents or information to establish such eligibility.
In response, plaintiff posited, but proffered no evidence, that the Social Security number he had provided might mistakenly have been assigned to
The trial court initially denied the motion, finding there were triable issues whether (1) plaintiff had fraudulently submitted the Social Security number, or instead whether the same number had mistakenly been issued to two different people; (2) plaintiff was eligible for United States employment based upon his submission of a valid alien registration card; and (3) plaintiff had apprised defendant of the discrepancy notice he received from the Social Security Administration, and if so, whether defendant had acted on this information, or instead had ignored it.
Defendant sought mandamus, and the Court of Appeal issued an alternative writ. In response, the trial court withdrew its order denying the motion for summary judgment, granted the motion, and dismissed the action.
The Court of Appeal affirmed. It reasoned that the after-acquired evidence and unclean hands doctrines provided a complete defense to the employer's liability for an allegedly wrongful discharge under FEHA.
The Court of Appeal conceded there was no evidence plaintiff had failed to provide a valid alien registration card (a photo identification document which, if valid, suffices to establish both identity and employment eligibility for immigration law purposes).
The Court of Appeal also dismissed plaintiff's claim he had demonstrated the triability of defendant's policies toward employees and applicants who submitted false documents. The court reasoned that the declaration of defendant's president, to the effect that the company would refuse to hire applicants who were undocumented, or who provided false numbers, was not directly contradicted by Huizar's alleged statement that defendant would overlook discrepancies in Social Security numbers, or by plaintiff's declaration that other employees of defendant admitted they were undocumented aliens, and that plaintiff had never heard of any worker being terminated over Social Security or immigration issues.
Finally, the Court of Appeal ruled that application of the after-acquired evidence and unclean hands doctrines to bar plaintiff's recovery was not precluded by Senate Bill No. 1818. This bill inserted, at several places in the codified statutes, a declaration that all worker and employee protections, rights, and remedies provided by California law, "except any reinstatement remedy prohibited by federal law," are available to individuals "regardless of immigration status." (Stats. 2002, ch. 1071, §§ 1-4, pp. 6914-6915.) The Court of Appeal noted that Senate Bill No. 1818 stated it was "declaratory of existing law," and cannot have been intended to immunize undocumented aliens from employer defenses that would apply against all other workers. At the time Senate Bill No. 1818 was enacted, the Court of Appeal asserted, existing case law barred an employee from recovering lost wages for wrongful termination if, as here, he was not legally qualified for the job, was not eligible for reinstatement, or would not have been reinstated in the exercise of legitimate employer prerogatives.
The majority finds this analysis unpersuasive, and would reverse the Court of Appeal. In the majority's view, triable issues remain about whether plaintiff's submission of the false Social Security card and number, if known by defendant, would have caused defendant to terminate plaintiff's employment.
Further, the majority posits, even if defendant would have declined, on this legitimate ground, to hire or retain plaintiff, the after-acquired evidence and unclean hands doctrines generally cannot serve as complete bars to a wrongdoing worker's recovery, under FEHA, when the employer's actual motive was forbidden by the statute. Except in the most egregious cases of
The majority further concludes that Senate Bill No. 1818's reference to "existing law" was not intended to endorse, in the immigration context, a broad reading of certain prior cases suggesting that under the after-acquired evidence and unclean hands doctrines, an employee's wrongdoing which would have caused his or her legitimate termination bars a claim of wrongful termination. Observing that the legislative history of Senate Bill No. 1818 does not mention these prior decisions, the majority suggests that the more likely purpose of the "existing law" language was to extend to then pending
But before discussing these state law issues, the majority addresses a "threshold" issue not litigated below — whether a federal immigration statute, IRCA, either completely or partially preempts Senate Bill No. 1818's mandate that all California labor and employment rights and remedies, including those afforded by FEHA, are fully applicable to workers "who are unauthorized aliens." (Maj. opn., ante, at p. 418, fn. omitted.) The majority concludes that IRCA does preclude an unauthorized alien who was wrongfully terminated in violation of FEHA from recovering lost wages for any period after the employer subsequently discovered the alien was ineligible for employment under federal immigration law, but does not bar such a recovery for the period before the employer learned of the alien's ineligibility.
I have doubts about the majority's analysis of state law — in particular, I question the majority's construction of the "existing law" proviso in Senate Bill No. 1818. However, I decline to draw a final conclusion on that issue at the current stage of this procedurally tangled case, because I am persuaded that the supremacy of federal immigration law may ultimately obviate the recovery the majority would allow. If further litigation proves plaintiff actually is an unauthorized alien who submitted false documentation to prove otherwise, I believe, contrary to the majority, that federal immigration policy will foreclose any recovery by plaintiff of posttermination lost wages under California law. This result, I conclude, is dictated by definitive United States Supreme Court authority.
As the majority acknowledges, under the supremacy clause (U.S. Const., art. VI, cl. 2), federal law preempts and supersedes state law if, among other things, the state law stands as "an obstacle to accomplishing congressional objectives. [Citations.]" (Maj. opn., ante, at p. 421.) The United States Supreme Court has told us, in no uncertain terms, that the award of posttermination lost wage damages to an unauthorized alien worker who procured the job by committing criminal immigration fraud presents just such an unacceptable obstacle.
In Hoffman Plastic Compounds, Inc. v. NLRB (2002) 535 U.S. 137 [152 L.Ed.2d 271, 122 S.Ct. 1275] (Hoffman), the National Labor Relations Board (NLRB or Board) found that, in 1992, Hoffman Plastic Compounds, Inc. (Hoffman), a custom formulator of industrial and pharmaceutical chemical products, had committed an unfair labor practice under the National Labor Relations Act (NLRA; 29 U.S.C. § 151 et seq.) by terminating Jose Castro and several other workers in retaliation for their union organizing activities.
At a subsequent compliance hearing, Castro disclosed that he was an alien who had never been authorized to work in the United States. Castro further indicated that he had gained employment with Hoffman by proffering a birth certificate belonging to a Texas-born friend, and that he had also used this certificate to fraudulently obtain a Social Security card. Based on this evidence, the administrative law judge (ALJ) found that the Board was precluded from awarding reinstatement or backpay to Castro.
Several years later, the Board reversed the ALJ on the issue of Castro's backpay. The Board concluded that "`the most effective way to accommodate and further the immigration policies embodied in [IRCA] is to provide the protections and remedies of the [NLRA] to undocumented workers in the same manner as to other employees.' [Citation.]" (Hoffman, supra, 535 U.S. at p. 141.) Accordingly, the Board ruled that Castro was entitled to some $67,000 in backpay, plus interest on that principal amount. The court of appeals enforced the Board's order.
The United States Supreme Court reversed. At the outset, the majority noted that the NLRB's authority to remedy unfair labor practices, though broad, is not unlimited where "the Board's remedial preferences ... potentially trench upon federal statutes and policies unrelated to the NLRA." (Hoffman, supra, 535 U.S. at p. 144.)
The Hoffman majority explained that, in Sure-Tan, Inc. v. NLRB (1984) 467 U.S. 883 [81 L.Ed.2d 732, 104 S.Ct. 2803] — at a time when federal immigration law did not expressly prohibit unauthorized aliens from working or being hired while present in this country, and was only "`"peripheral[ly]"'" concerned with their employment here — the court had nonetheless precluded the NLRB from unconditionally ordering reinstatement of undocumented alien employees who had since voluntarily left the country. (Hoffman, supra, 535 U.S. at p. 144.) So as to not "effectively [reward] a violation of the immigration laws by reinstating workers not authorized to reenter the United States" (id. at p. 145), Sure-Tan had required that an award of reinstatement in such cases be conditioned on proof of the workers' legal reentry. Moreover, the court had reasoned in Sure-Tan, these employees "`must be deemed "unavailable"'" for work, and backpay could thus not be awarded, with respect to any period in which such persons "`were not lawfully entitled to be present and employed in the United States.'" (Hoffman, supra, at p. 145.)
In Hoffman, the Board argued that the Sure-Tan limitations applied only to undocumented aliens who had left the United States and thus could not claim
As the Hoffman majority recounted, "two years after Sure-Tan, Congress [had] enacted IRCA, a comprehensive [immigration reform] scheme [that] prohibit[s] the employment of illegal aliens ..." and "`forcefully' [makes] combating [such] employment ... central to `[t]he policy of immigration law.' [Citation.]" (Hoffman, supra, 535 U.S. at p. 147.) "[C]ritical" to enforcement of the prohibition, the court noted, is an "extensive `... verification system' ... designed to deny employment to aliens" not legally present or "authorized to work" in this country. (Ibid., citation omitted.) Under this system, an employer must verify the identity and eligibility of all potential new hires by examining specified documentation. An employer that hires an alien applicant who is unable to present such documentation, or otherwise knowingly employs an ineligible alien, is subject to civil and criminal penalties.
To ensure the effective confirmation of an applicant's authorization to work in this country, the Hoffman majority pointed out, IRCA "makes it a crime for an unauthorized alien to subvert [this] verification system by tendering fraudulent documents. [Citation.]" (Hoffman, supra, 535 U.S. at p. 148.) "[The statute] thus prohibits aliens from using or attempting to use `any forged, counterfeit, altered, or falsely made document' or `any document lawfully issued to or with respect to a person other than the possessor' for purposes of obtaining employment in the United States. [Citation.] Aliens who use or attempt to use such documents are subject to fines and criminal prosecution. [Citation.]" (Ibid.)
"Under the IRCA regime," the Hoffman majority explained, "it is impossible for an undocumented alien to obtain employment in the United States without some party directly contravening explicit congressional policies. Either the undocumented alien tenders fraudulent identification, which subverts the cornerstone of IRCA's enforcement mechanism, or the employer knowingly hires the undocumented alien in direct contradiction of its IRCA obligations. The Board asks that we overlook this fact and allow it to award backpay to an illegal alien for years of work not performed, for wages that could not lawfully have been earned, and for a job obtained in the first
The Board urged that a limited backpay award — one confined to the period before the employer learned of Castro's illegal status — would reasonably accommodate IRCA, because during the prediscovery period, the employer would not have violated IRCA by retaining Castro in its employ, and because IRCA does not expressly prohibit the recovery of backpay by illegal aliens who misused documents to procure their jobs. The Hoffman majority rejected this argument. "What matters here," the majority declared, "and what sinks both of the Board's claims, is that Congress has expressly made it criminally punishable for an alien to obtain employment with false documents. There is no reason to think that Congress nonetheless intended to permit backpay where but for an employer's unfair labor practices, an alien-employee would have remained in the United States illegally, and continued to work illegally, all the while successfully evading ... immigration authorities. Far from `accommodating' IRCA, the Board's position, recognizing employer misconduct but discounting the misconduct of illegal alien employees, subverts it." (Hoffman, supra, 535 U.S. at pp. 149-150, fn. omitted.) Indeed, the Hoffman majority asserted, such a backpay award "not only trivializes the immigration laws, it ... condones and encourages future violations" by creating incentives to remain and work in this country illegally. (Id., at p. 150.)
"We therefore conclude," the Hoffman majority declared, "that allowing the Board to award backpay to illegal aliens would unduly trench upon explicit statutory prohibitions critical to federal immigration policy, as expressed in IRCA. It would encourage the successful evasion of apprehension by immigration authorities, condone prior violations of the immigration laws, and encourage future violations. However broad the Board's discretion to fashion remedies when dealing only with the NLRA, it is not so unbounded as to authorize this sort of an award." (Hoffman, supra, 535 U.S. at pp. 151-152, italics added.)
Thus, after considering the issue at length, the high court has made crystal clear that federal immigration policy, as set forth in IRCA, is critically undermined by the award of posttermination lost wages to an alien who is not legally present or authorized to work in this country, and who committed criminal immigration fraud to obtain the job, even when the alien was wrongfully terminated in violation of another law generally intended for the protection of workers' rights. The conclusion follows inescapably, under the
The instant majority struggles mightily to avoid this result. In the majority's view, we may disregard Hoffman for the purpose of preemption analysis because (1) Hoffman concerned only the interplay of two federal statutes, and said nothing about IRCA's preemptive effect on state worker protection laws; (2) Congress has not expressly precluded all state laws concerning undocumented aliens, or so occupied the field as to dictate such preclusion; (3) there is a presumption against preemption in areas of traditional state regulation, such as the protection of workers; and (4) the NLRA, the statute at issue in Hoffman, does not rely, for enforcement, on private suits for damages to the same extent as does California's antidiscrimination statute, FEHA.
Then, as if Hoffman did not exist, the majority reweighs the concerns that led the Hoffman majority to its ruling. Contrary to Hoffman, the instant majority concludes that a rule allowing a criminally fraudulent unauthorized alien to collect wrongful-termination lost wage damages will have but a "minimal" effect on IRCA's policies (maj. opn., ante, at pp. 425-426), while failing to allow such a recovery against an employer who wronged the worker under another statute would "frustrate rather than advance the policies underlying federal immigration law" (id., at p. 426). In effect, the majority rejects the highest federal tribunal's assessment of what would unacceptably undermine Congress's immigration purposes and priorities, in favor of its own views on that subject.
None of this is persuasive. Whatever distinctions exist between the NLRA and FEHA, and between tension among federal policies on the one hand, and competing state and federal policies on the other, any such differences are insignificant for purposes of the issue before us. The United States Supreme Court — the final judicial authority on the meaning and scope of federal statutory law — has told us of a particular situation in which a legislative policy of worker protection must yield to the overriding aims of the federal immigration statutes. It has said specifically that awarding posttermination pay to an illegal alien for "work not performed, for wages that could not lawfully have been earned, and for a job obtained in the first instance by a criminal fraud" (Hoffman, supra, 535 U.S. at p. 149) "runs counter to policies underlying IRCA" (ibid.) and "would ... trench upon explicit statutory prohibitions critical to federal immigration policy" (id., at p. 151).
These are declarations strong and clear enough to prevail over California's expression of its sovereign right and intention to protect unauthorized alien
Thus, just as in Hoffman, IRCA's policies were beyond the NLRB's "authority to enforce and administer" (Hoffman, supra, 535 U.S. at p. 149), so too are those policies beyond the administration and enforcement authority of this state and its laws. And just as the NLRB's authority, however broad, "to fashion remedies when dealing only with the NLRA" did not extend to an award that trenched upon an immigration statute beyond the Board's jurisdiction (id., at pp. 151-152), so too, this state's undoubted authority to fashion remedies for violations of FEHA, when that statute is considered in isolation, does not extend to awards that would have, as the high court has concluded, a deleterious effect on a federal immigration statute beyond California's jurisdiction.
I therefore find it manifest that California cannot award, as a remedy for wrongful termination under FEHA, lost wage damages to an alien who is unauthorized to work in this country, and who obtained the job at issue by submitting fraudulent eligibility documentation in direct criminal violation of federal immigration law. California cannot dictate otherwise through the adoption of a statute such as Senate Bill No. 1818. Thus, if further litigation establishes that this is plaintiff's situation, I believe his recovery of such lost wages attributable to any period after he was terminated from his employment will be preempted and barred.
As I have indicated above, it appears clear from the instant record that plaintiff used a false Social Security card and number to obtain employment with defendant, but the evidence on summary judgment does not establish whether plaintiff is actually an alien unauthorized to work in the United States. Because application of the preemption rule I derive from Hoffman depends on a determination of that issue, and because plaintiff's immigration status may not necessarily bar him from pursuing a FEHA claim in some form, I concur in the reversal of the summary judgment for defendant.
Chin, J., concurred.
Thus, if equitable considerations "such as unclean hands" (maj. opn., ante, at p. ___ 432) cannot completely bar a claim based on statute or important public policy (see McKennon v. Nashville Banner Publishing Co., supra, 513 U.S. at p. 360; Angelucci v. Century Supper Club (2007) 41 Cal.4th 160, 179 [59 Cal.Rptr.3d 142, 158 P.3d 718]), the unclean hands doctrine is inapplicable in such circumstances. Our suggestion in Angelucci that unclean hands may sometimes reduce the damages awarded to an employee wrongfully discharged under an antidiscrimination statute (Angelucci, supra, at p. 179) appears to have been an imprecise reading of McKennon; McKennon actually rejected the defense of unclean hands under the statute at issue there (McKennon, supra, at p. 360). However, as McKennon also made clear, after-acquired evidence of an employer's legitimate grounds for discharging an employee may nonetheless be considered when fashioning a remedy for unlawful termination in order to "take due account of the lawful prerogatives of the employer in the usual course of its business and the corresponding equities that it has arising from the employee's wrongdoing." (Id. at p. 361; see Employment Litigation, supra, ¶¶ 16:616 to 16:617, p. 16-94.6 (rev. # 1, 2013) [though unclean hands can only be a complete defense to wrongful termination, employee misconduct short of unclean hands may still be a complete or partial defense under after-acquired evidence doctrine].)