Agriculture News - Produce Merchants Not Liable for Workers' Wages

2010-08-05T11:19:00.000-07:00

Court Says Produce Merchants Not Liable for Workers’ Wages

The California Supreme Court has held that merchants who purchase produce from farm operations are not liable for wages of farm workers, even when the merchants are involved in financing and inspecting the farm operations.

Seasonal agricultural workers brought a lawsuit against Isidro Munoz, Sr., a strawberry grower in the Santa Maria Valley on the Central Coast, for unpaid minimum wages. Because Mr. Munoz was discharged in bankruptcy, the workers also brought suit against produce merchants through whom Mr. Munoz sold the strawberries.

The strawberry merchants had significant involvement with the farm operations. They leased some of the fields to Mr. Munoz. They advanced money to him before the season began, which advances were retired from sales revenues. They also regularly sent field representatives to determine the quality of the strawberries and the manner in which they were to be packed. Finally, they paid for the strawberries after they were picked and packaged.

The workers claimed that the farmer, Mr. Munoz, and the merchants had jointly hired the workers, given the interweaving relationships. They claimed that the merchants exercised control over working conditions because the merchant field reps were in the fields, explaining how they wanted the berries packed, demonstrating packing styles, and inspecting berry quality. They would sometimes directly speak to the workers and point out mistakes.

The state Supreme Court noted that the Legislature has not defined the term “employer” in its worker wage laws. Although federal law may have made the merchants liable, the Court cautioned against mixing federal and state law in the employment law area. The Court rules that because the merchant representatives did not supervise or exercise control over the workers, and none of the workers believed that they owed obedience to anyone but the farmer and his supervisors, there was insufficient evidence to prove an employment relationship between the workers and the merchants. The Court held that the produce merchants were not liable for the workers’ wages.

(California Supreme Court, Martinez v. Combs, May 20, 2010)

_____________________________________________________________________

Cota Cole LLP provides statewide legal services from its Roseville and Madera offices to the agricultural industry, local governments and businesses. Roseville 916-780-9009; Madera 559-675-9006; http://www.cotalawfirm.com/