WILLHITE, J. —
Touchstone Television Productions, LLC (Touchstone), hired actress Nicollette Sheridan to appear in the television series Desperate Housewives, a show created by Marc Cherry.
Touchstone hired Sheridan in 2004 under an agreement with her loan-out company Starlike Enterprises, to play the character of Edie Britt in the television series Desperate Housewives. The agreement was for the show's initial season and gave Touchstone the option to renew the contract on an annual basis for an additional six seasons. (See Touchstone I, supra, 208 Cal.App.4th at p. 679.) Touchstone renewed Sheridan's contract for five seasons, through 2008. Sheridan alleged that during a September 24, 2008
After Touchstone did not renew Sheridan's contract for season 6, she sued Touchstone for, inter alia, wrongful termination in violation of public policy, alleging that Touchstone fired her because of her complaint about the alleged battery. The jury deadlocked and the court declared a mistrial. As noted above, we granted Touchstone's petition for writ of mandate and directed the superior court to grant Touchstone's motion for a directed verdict on Sheridan's cause of action for wrongful termination in violation of public policy and to permit Sheridan to file an amended complaint alleging a cause of action under section 6310. (Touchstone I, supra, 208 Cal.App.4th at p. 678.)
Sheridan filed a second amended complaint (the operative complaint), alleging that Touchstone retaliated against her in violation of section 6310 for complaining about Cherry's alleged battery. Touchstone demurred, arguing that Sheridan failed to exhaust her administrative remedies by filing a claim with the Labor Commissioner under sections 98.7 and 6312. The trial court overruled the demurrer, finding that the exhaustion of administrative remedies was not required to plead a violation of section 6310. Touchstone filed a petition for writ of mandate with this court in May 2013. In August 2013, the Third Appellate District held that an employee must exhaust the administrative remedy set forth in section 98.7 before filing a complaint for retaliatory discharge in violation of section 6310. (See MacDonald v. State of California (2013) 219 Cal.App.4th 67 [161 Cal.Rptr.3d 520], petn. for review den. and opn. ordered nonpub., Nov. 26, 2013, S213450 (MacDonald).) We denied Touchstone's petition for writ of mandate without prejudice to Touchstone filing a motion for reconsideration in the trial court in light of MacDonald.
Touchstone renewed its demurrer in the trial court. At a hearing in October 2013, the trial court found that MacDonald controlled. Thus, on November 5, 2013, the court sustained the demurrer and dismissed Sheridan's complaint without leave to amend because she failed to exhaust her administrative remedies. On November 26, 2013, the California Supreme Court denied the petition for review in MacDonald and ordered the opinion depublished.
In October 2013, the Legislature amended the Labor Code, adding two new provisions effective January 1, 2014. (Stats. 2013, ch. 577, § 4; id., ch. 732, § 3.) Section 244 provides in relevant part that "An individual is not required to exhaust administrative remedies or procedures in order to bring a civil action under any provision of this code, unless that section under which the action is brought expressly requires exhaustion of an administrative remedy." (§ 244, subd. (a).) The newly enacted subdivision (g) of section 98.7
Sheridan filed a motion for new trial and a motion for reconsideration, arguing that, in light of MacDonald's depublication and the statutory amendments, it was clear she was not required to exhaust administrative remedies. The trial court denied Sheridan's motion for new trial on the basis that there was "no new law stated." However, the court subsequently granted Sheridan's motion for reconsideration, overruled Touchstone's demurrer, and ordered that a case management conference be held.
Touchstone filed another writ petition in this court. We issued an alternative writ of mandate, requiring the court to enter a new order denying Sheridan's motion for reconsideration on the ground that the trial court lacked jurisdiction to consider the matter. The trial court vacated the order granting Sheridan's motion for reconsideration and entered a new order denying the motion on the ground that it lacked jurisdiction to reconsider the matter. Sheridan timely appealed.
The question we must decide is whether sections 98.7 and 6312 required Sheridan to exhaust her administrative remedies before filing suit under section 6310. We begin with the language of the statutes.
Section 6312 provides in full: "Any employee who believes that he or she has been discharged or otherwise discriminated against by any person in violation of Section 6310 or 6311 may file a complaint with the Labor Commissioner pursuant to Section 98.7."
Further, as we explain, the cases on which Touchstone relies — Abelleira v. District Court of Appeal (1941) 17 Cal.2d 280 [109 P.2d 942] (Abelleira) and Campbell v. Regents of University of California (2005) 35 Cal.4th 311 [25 Cal.Rptr.3d 320, 106 P.3d 976] (Campbell) — involved the general requirement of exhaustion under statutes that explicitly required exhaustion of administrative remedies. In contrast, the statutes at issue here permit, but do not require the use of administrative remedies. Moreover, neither Abelleira nor Campbell addressed section 98.7 or 6312.
The plaintiff in Campbell was an employee of the Regents of the University of California who reported alleged violations of state competitive bidding laws to the Regents and to the FBI. After she was discharged, she filed an internal complaint under the grievance procedures set forth in her personnel policy. The university sent her a letter in response to her complaint, informing her that the procedure she used did not apply to her complaint. Instead, she was required to file her grievance under the university's policy and procedures applicable to whistle-blowing. Rather than refiling her complaint under the applicable policy and procedures, she filed a complaint in superior court, "seeking damages for retaliatory termination under Government Code section 12653 and Labor Code section 1102.5." (Campbell, supra, 35 Cal.4th at p. 319.)
The California Supreme Court explained that the Regents' personnel policies "`may enjoy a status equivalent to that of state statutes.' [Citation.]" (Campbell, supra, 35 Cal.4th at p. 320.) The policy for handling whistleblower claims thus was "treated as a statute in order to determine whether the exhaustion doctrine applies." (Id. at p. 321.) The policy required the plaintiff "to resort initially to internal grievance practices and procedures" before filing suit. (Id. at p. 324.) After examining the Regents' policy and the statutes the plaintiff cited to argue that exhaustion did not apply, the court concluded that, "absent a clear indication of legislative intent, we should refrain from inferring a statutory exemption from our settled rule requiring exhaustion of administrative remedies."
In Abelleira, the statute at issue was the California Unemployment Insurance Act enacted in 1935. (See Abelleira, 17 Cal.2d at pp. 283-284.) Similar to the Regents' policy in Campbell, the statute explicitly required an employee to resort to administrative remedies.
Unlike the statute in Abelleira and the policy in Campbell, the pre-2013 versions of sections 98.7 and 6312 did not require an employee to "resort initially" to administrative procedures by filing a complaint with the Labor Commissioner. (Campbell, supra, 35 Cal.4th at p. 324.) Instead, the statutes used permissive language, providing that an employee "may file a complaint...." (§§ 98.7, 6312, italics added.) Thus, Abelleira and Campbell do not govern this case. (See Satyadi, supra, 232 Cal.App.4th at p. 1030 [reasoning that "in Campbell no party raised any argument regarding the effect of section 98.7, and that statute is not mentioned in the court's opinion."].)
Our reasoning is supported by Lloyd v. County of Los Angeles (2009) 172 Cal.App.4th 320 [90 Cal.Rptr.3d 872] (Lloyd), in which Division Three of this district found that the plaintiff was not required to exhaust the administrative remedy of section 98.7. (Lloyd, at p. 331.) In Lloyd, the plaintiff alleged that he had been terminated from his job with a county due to his whistle-blowing activity. He further alleged that his termination violated the Labor Code, including sections 98.7 and 1102.5. The appellate court rejected
Our reasoning is also supported by Satyadi, in which the First Appellate District considered whether the 2013 amendments, adding section 244, subdivision (a), and section 98.7, subdivision (g), applied to the plaintiff's appeal. (Satyadi, supra, 232 Cal.App.4th at p. 1024.) The plaintiff had sued her former employer under section 1102.5, alleging that "she had been fired in retaliation for reporting and refusing to participate in her employer's allegedly illegal activities." (Satyadi, at p. 1024.) The trial court dismissed the action, ruling that Campbell required her "first to seek relief from the Labor Commissioner before filing suit in court." (Ibid.) The appellate court found that Campbell did not address section 98.7, but Lloyd "squarely confronted" the issue of exhaustion under section 98.7. (Satyadi, at p. 1030.) The court further noted that federal cases addressing the exhaustion issue were divided.
Because Lloyd found no exhaustion requirement and Campbell "provided no direct support for the view that" plaintiffs filing suit for violations of section 1102.5 must exhaust section 98.7's administrative remedy, Satyadi concluded that "prior to the Legislature's amendments to the Labor Code, California case law did not require exhaustion of the section 98.7 remedy."
We agree. Before the 2013 amendments, sections 98.7 and 6312 permitted but did not require plaintiffs to resort to administrative procedures. The California Supreme Court had not settled the issue, and Lloyd had held that exhaustion under section 98.7 was not required before filing suit under section 1102.5. (Satyadi, supra, 232 Cal.App.4th at p. 1032.) Thus, exhaustion of the remedy provided by section 98.7 was not required, and the 2013 enactments simply clarified this point. (Satyadi, at p. 1032.) The same reasoning applies to section 6312, which, like section 98.7, does not require administrative exhaustion and had not been "finally and definitively interpreted." (McClung, supra, 34 Cal.4th at p. 473.) Sheridan therefore was not required to exhaust her administrative remedies before filing suit for a violation of section 6310.
The judgment of dismissal in favor of Touchstone is reversed and the matter is remanded to the trial court with instructions to vacate the order
Epstein, P. J., and Manella, J., concurred.