MDC RESTAURANTS, LLC VS. DIST. CT. (DIAZ)
Nevada Supreme Court
MDC RESTAURANTS, LLC VS. DIST. CT. (DIAZ), 2018 NV 41 (Nev. 2018)
MDC RESTAURANTS, LLC VS. DIST. CT. (DIAZ)
Opinion
134 Nev., Advance Opinion 41
IN THE SUPREME COURT OF THE STATE OF NEVADA
MDC RESTAURANTS, LLC; LAGUNA No. 71289
RESTAURANTS, LLC; AND INKA, LLC,
Petitioners,
vs.
THE EIGHTH JUDICIAL DISTRICT
FILED
COURT OF THE STATE OF NEVADA, MAY 3 1 2018
IN AND FOR THE COUNTY OF iti 1E11- TH tLBROWN
CLARK; AND THE HONORABLE
TIMOTHY C. WILLIAMS, DISTRICT
hi 0) ak
JUDGE,
Respondents,
and
PAULETTE DIAZ; LAWANDA GAIL
WILBANKS; SHANNON OLSZYNSKI;
AND CHARITY FITZLAFF, ALL ON
BEHALF OF THEMSELVES AND ALL
SIMILARLY SITUATED INDIVIDUALS,
Real Parties in Interest.
Original petition for a writ of mandamus or other extraordinary
relief challenging a district court order concerning the interpretation of
Nevada Constitution Article 15, Section 16.
Petition granted.
Clark Hill PLLC and Nicholas M. Wieczorek, Deanna L. Forbush, and
Jeremy J. Thompson, Las Vegas,
for Petitioners.
Wolf, Rifkin, Shapiro, Schulman & Rabkin, LLP, and Bradley S. Schrager,
Jordan J. Butler, and Don Springmeyer, Las Vegas,
for Real Parties in Interest.
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161:5144,
Jackson Lewis P.C. and Elayna J. Youchah and Phillip C Thompson, Las
Vegas,
for Amici Curiae Claim Jumper Acquisition Co., LLC; Landry's Inc.;
Landry's Seafood House—Nevada, Inc.; Landry's Seafood House—
Arlington, Inc.; Bubba Gump Shrimp Co. Restaurants, Inc.; Morton's of
Chicago/Flamingo Road Corp., and Bertolini's of Las Vegas, Inc.
Littler Mendelson and Rick D. Roskelley, Kathryn B. Blakey, Roger L.
Grandgenett, II, and Montgomery Y. Paek, Las Vegas,
for Amici Curiae Briad Restaurant Group, LLC; Wendy's of Las Vegas, Inc.;
Cedar Enterprises, Inc.; and Terrible Herbst, Inc.
BEFORE THE COURT EN BANC.
OPINION
By the Court, PICKERING, J.:
The Minimum Wage Amendment (MWA) to the Nevada
Constitution allows an employer who provides health benefits to pay a
minimum wage of one dollar per hour less than an employer who does not
provide health benefits. In this case, we are asked to clarify what health
benefits an employer must provide to qualify for this privilege. We answer
that the MWA requires an employer who pays one dollar per hour less in
wages to provide a benefit in the form of health insurance at least
equivalent to the one dollar per hour in wages that the employee would
otherwise receive. Because the district court applied the substantive
requirements of NRS Chapters 608, 689A, and 689B, rather than the
standard set forth in this opinion, we grant petitioners' request for
extraordinary relief.
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I.
A.
The MWA is the result of a voter initiative called "The Raise the
Minimum Wage for Working Nevadans Act." Posed as a statewide ballot
question in 2004 and 2006, the measure declared that "En] o full-time
worker should live in poverty in our state" and that "[l]aising the minimum
wage is the best way to fight poverty." Secretary of State, Statewide
Ballot Questions, Question No. 6, p. 35 (2006), http://nvsos.govisos/home/
showdocument?id=206. It stated that "[hiving expenses such as housing,
healthcare, and food have far outpaced wage levels for Nevada's working
families" and that a higher minimum wage would help "make sure the
workers who are the backbone of our economy receive fair paychecks that
allow them and their families to live above the poverty line." Id. After the
measure passed in both 2004 and 2006, it became Article 15, Section 16 of
the Nevada Constitution. In relevant part, the MWA reads:
Each employer shall pay a wage to each employee
of not less than the hourly rates set forth in this
section. The rate shall be five dollars and fifteen
cents ($5.15) per hour worked, if the employer
provides health benefits as described herein, or six
dollars and fifteen cents ($6.15) per hour if the
employer does not provide such benefits. Offering
health benefits within the meaning of this section
shall consist of making health insurance available
to the employee for the employee and the
employee's dependents at a total cost to the
employee for premiums of not more than 10 percent
of the employee's gross taxable income from the
employer. These rates of wages shall be adjusted
by the amount of increases in the federal minimum
wage over $5.15 per hour, or, if greater, by the
cumulative increase in the cost of living.
Nev. Const. art. 15, § 16(A).
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When the MWA went into effect in 2006, the minimum wage
was $5.15 per hour if an employer provided health benefits, and $6.15 if an
employer did not provide health benefits. See Nev. Const. art. 15, § 16(A).
The MWA requires that those wages be adjusted according to standards
articulated in the text of the MWA itself. See id. Currently, as
adjusted and annually announced by the Office of the Labor
Commissioner, the upper-tier minimum wage is $8.25 per hour,
and the lower-tier minimum wage is $7.25. See Press Release,
State of Nevada Department of Business and Industry, Nevada's
minimum wage and daily overtime rates will not increase in 2017 (March
30, 2017), http://labonnv.gov/uploadedFiles/labornvgovicontent/Wages/
2017%20Minimum%20Wage%20Press%20Release.pdf. To pay an
employee the lower-tier minimum wage, the employer must "provide[
health benefits" to the employee. Nev. Const. art. 15, § 16. To provide
health benefits means to make health insurance available to an employee
and his or her dependents at a total cost to the employee for premiums not
more than 10 percent of the employee's gross taxable income. Id.
B.
Real parties in interest include four named plaintiffs who sued
on behalf of themselves and other similarly situated employees (collectively
"employees"), alleging that their employers paid them the lower-tier
minimum wage without providing sufficient health benefits under the
MWA. Petitioners MDC Restaurants, LLC; Laguna Restaurants, LLC; and
Inka, LLC (collectively "MDC") are the plaintiffs' employers and the
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defendants in the suit in district court.' The employees moved for summary
judgment, arguing that the health insurance offered by MDC did not qualify
MDC to pay the lower-tier minimum wage because it did not comply with
Nevada statutes placing substantive requirements on health insurance.
The district court granted the employees' motion, determining
that an employer only provides health benefits sufficient to pay the MWA's
lower-tier minimum wage if the employer offers health insurance that
complies with NRS Chapters 608, 689A, and 689B. NRS Chapter 608 places
substantive requirements on employer-provided health insurance and
requires an employer who offers health benefits to provide insurance that
complies with NRS Chapters 689A and 689B. 2 NRS Chapter 689A
regulates "individual health insurance" and Chapter 689B regulates "group
and blanket health insurance." Both chapters mandate when certain
benefits must be covered, including coverage for expenses such as hospice
care, prescription drugs, cancer treatment, the management and treatment
of diabetes, severe mental illness, and alcohol or drug abuse. The district
court reasoned that because the "limited benefit plans" offered by MDC did
"MDC and the employees previously came before us seeking to clarify
what it means to provide health benefits, and we held that an employer may
pay the lower-tier minimum wage if the employer offers or makes qualifying
health insurance available, even if the employee does not enroll in a plan.
See MDC Rests., LLC v. Eighth Judicial Dist. Court ("MDC I"), 132 Nev.
Nev., Adv. Op. 76, 383 P.3d 262, 266-67 (2016).
2 SeeNRS 608.1555 ("Any employer who provides benefits for health
care to his or her employees shall provide the same benefits and pay
providers of health care in the same manner as a policy of insurance
pursuant to chapters 689A and 689B of NRS ."); see also, e.g., NRS
608.156(1) ("If an employer provides health benefits for his or her
employees, the employer shall provide benefits for the expenses for the
treatment of abuse of alcohol and drugs.").
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not satisfy the statutory requirements of NRS Chapters 608, 689A, and
689B, the plans were not "health insurance" under the MWA sufficient to
qualify MDC to pay the lower-tier minimum wage.
MDC now requests a writ of mandamus directing the district
court to vacate its order granting partial summary judgment and either
(1) refer the employees to the Labor Commissioner for an initial
consideration of their wage complaints; or (2) direct the district court to
evaluate the plans offered by MDC under NAC 608.102 instead of NRS
Chapters 608, 689A, and 689B.
Whether to grant extraordinary relief is solely within this
court's discretion. See Smith v. Eighth Judicial Dist. Court, 107 Nev. 674,
677, 818 P.2d 849, 851 (1991). Generally, mandamus will issue to compel
performance of a judicial act that the law requires as a duty resulting from
office, see NRS 34.160, when "there is not a plain, speedy and adequate
remedy in the ordinary course of law," NRS 34.170. Where, as here, the
petitioners instead seek clarification of a legal issue of first impression,
mandamus can nonetheless be appropriate when "an important issue of law
needs clarification and considerations of sound judicial economy and
administration militate in favor of granting the petition." Int? Game Tech.,
Inc. v. Second Judicial Dist. Court, 124 Nev. 193, 197-98, 179 P.3d 556, 559
(2008). However, "such relief must be issued sparingly and thoughtfully
due to its disruptive nature" in litigation. Archon Corp. v. Eighth Judicial
Dist. Court, 133 Nev., Adv. Op. 101, 407 P.3d 702, 709 (2017). Such a
petition for a writ of advisory mandamus should be granted only "when the
issue presented is novel, of great public importance, and likely to recur." Id.
at 708 (quoting United States v. Horn, 29 F.3d 754, 769 (1st Cir. 1994)).
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While we generally deny such petitions, articulating the
standard for when an employer who offers health benefits can pay the
lower-tier minimum wage is an issue of statewide importance that needs
clarification. In fact, the Legislature recently passed legislation attempting
to answer this exact question, but it was vetoed by the Governor. See Letter
from Governor Sandoval to Secretary of State Cegavske, RE: Assembly Bill
175 of the 79th Legislative Session (June 9, 2017) [hereinafter Veto of A.B.
175], http://gov.nvegov/uploadedFiles/govnygov/Content/News_and_Media/
Press/2017_Images_and_Files/AB175 VETO.pdf. 3 And our state's district
courts, as well as the federal district court, have been grappling with the
issue presented in this petition as well. See, e.g., Tyus v. Wendy's of Las
Vegas, Inc., No.: 2:14—CV-0729—GMN—VCF, 2017 WL 4381680 (D. Nev.
Sept. 28, 2017); Hanks v. Briad Rest. Grp., LLC, No.: 2:14—CV-00786—
GMN—PAL, 2017 WL 4349227 (D. Nev. Sept. 29, 2017); Abrams v.
Peppermill Casinos, Inc., No. 3:16—CV-0454—MMD (VPC), 2017 WL
2485381 (D. Nev. June 8,2017); Tarvin v. Hofs Hut Rest, Inc., No. A-16-
741541-C (Eighth Judicial District Court, filed August 11, 2016). Thus,
3 The Governor's veto emphasized that this court already clarified the
issue presented in A.B. 175, and that "Mmposing a rigid, statutory
definition on constitutionally required 'health benefits' not only conflicts
with the flexible approach called for in the Nevada Constitution, but it also
risks upsetting the [MWA'sl careful, incentive-based balance that Nevada's
voters approved in 2006." Veto of A.B. 175, supra, at 2. The Governor also
expressed concern that the bill would require health insurance that would
exceed the cost of paying an additional one dollar per hour in wages and
create an incentive for employers to stop offering health insurance
altogether. Id. In addition to these concerns, the veto warned of potential
negative consequences for Nevada's workers and small businesses, such as
receiving less hours at work, decreasing the number of available jobs, and
resulting in a higher cost of providing health insurance. Id. at 1-2.
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because the petition presents legal issues of statewide importance requiring
clarification, and our decision will promote judicial economy and
administration by assisting other jurists, parties, and lawyers, we exercise
our discretion to consider the merits of this petition.
MDC argues that the Labor Commissioner should have primary
jurisdiction to resolve whether the plans in this case qualify as health
insurance under NAC 608.102. As discussed infra, NAC 608.102 purports
to set forth the requirements that a health insurance plan must meet to
qualify an employer who offers the plan to pay the MWA's lower-tier
minimum wage. MDC argues that the text of the MWA leaves a definitional
gap when it comes to "health insurance" and the Labor Commissioner,
having issued NAC 608.102 to fill that gap, should be the first to give input
as to whether a specific plan meets those qualifications.
"[The doctrine of primary jurisdiction occasionally requires
courts to refrain from exercising jurisdiction, so that technical issues can
first be considered by a governmental body." Richardson Constr., Inc. v.
Clark Cty. Sch. Dist., 123 Nev. 61, 66, 156 P.3d 21, 24 (2007). Whether to
withhold determination of an issue and give primary jurisdiction to an
agency—the Labor Commissioner in this instance—is within the discretion
of the district court. Nev. Power Co. v. Eighth Judicial Dist. Court, 120 Nev.
948, 962-63, 102 P.3d 578, 587-88 (2004). In determining whether to grant
an agency primary jurisdiction, a court is guided by: "(1) the extent to which
the agency's specialized expertise makes it a preferable forum for resolving
the issue, (2) the need for uniform resolution of the issue, and (3) the
potential that judicial resolution of the issue will have an adverse impact
on the agency's performance of its regulatory responsibilities." II Richard
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; Ma
J. Pierce, Jr., Administrative Law Treatise § 14.1, at 1162 (5th ed. 2010); see
also Richardson Constr., 123 Nev. at 66, 156 P.3d at 24 ("Two policies
underlie this doctrine. (1) a desire for uniform regulation, and (2) the need
for a tribunal with specialized knowledge to make initial assessments of
certain issues.").
We reject MDC's argument that the Labor Commissioner
should make the initial determination of what health insurance an
employer must offer to qualify to pay employees the lower-tier minimum
wage. While primary jurisdiction may apply "whenever enforcement of [a]
claim requires the resolution of issues which, under a regulatory scheme,
have been placed within the special competence of an administrative body,"
Nev. Power, 120 Nev. at 962, 102 P.3d at 587-88 (quoting United States v.
W. Pac. R.R. Co., 352 U.S. 59, 63-64 (1956)), at issue in this case is the
meaning of a provision in the Nevada Constitution. This case requires
interpretation of the MWA, which is a responsibility that we cannot
abdicate to an agency. See Pierce, supra, at 1172 ("No court would refer a
pure issue of constitutional law to an agency for initial resolution."); see also
Marbury v. Madison, 5 U.S. 137, 177 (1803) ("It is emphatically the province
and duty of the judicial department to say what the law is."); Baker v. Carr,
369 U.S. 186, 211 (1962) (recognizing that the Supreme Court is the
"ultimate interpreter of the Constitution").
Further, the question before the court is a legal one, and not one
that requires the special expertise of an agency to explain technical factors
necessary for the resolution of the issue. CI, e.g., Nev. Power, 120 Nev. at
962-63, 102 P.3d at 578-88 (considering whether an agency should have
primary jurisdiction to determine "the appropriate transformer loss factor"
and "appliy] its expertise to determine the percentage of electricity used by
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the transformers in the conversion process"). Rather, the MWA has been in
effect for over ten years, and the Labor Commissioner has already carefully
and thoughtfully provided input on this legal issue by enacting NAC
608.102. In fact, the Legislature also recently tried its hand at defining the
substantive requirements of a health insurance plan such that an employer
would qualify to pay the lower-tier minimum wage. See A.B. 175, 79th Leg.
(Nev_ 2017). However, the Governor vetoed the bill citing, in part, our
recent decision in Western Cab Co. v. Eighth Judicial District Court, 133
Nev., Adv. Op. 10, 390 P.3d 662 (2017), as having answered the question,
and, in other part, rejecting the imposition of a "rigid, statutory definition
on constitutionally required 'health benefits." Veto of A.B. 175, supra, at 2.
It strikes us as inappropriate to defer a question of constitutional
interpretation to an agency on the heels of the head of the state's executive
branch nullifying legislative action that would have answered the same
question—especially when the Governor's veto was, in part, based on the
recognition that it is this court's responsibility to interpret the MWA.
Finally, while the Labor Commissioner is tasked with enforcing
the labor laws of this state, the plain language of the MWA grants
employees a private cause of action to enforce their right to a minimum
wage. See Nev. Const. art. 15, § 16(B) ("An employee claiming violation of
this section may bring an action against his or her employer in the courts of
this State to enforce the provisions of this section and shall be entitled to
all remedies available under the law or in equity appropriate to remedy any
violation of this section. . . ."). Thus, the agency's resolution of this issue is
not necessary for uniform enforcement of a regulation, because the MWA
creates a private cause of action for employees against an employer for
violations of the MWA. On top of all of these considerations, we also note
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that granting primary jurisdiction to the Labor Commissioner at this stage
in the litigation, when the employers raised primary jurisdiction for the first
time nearly two years after the complaint was filed, would unduly delay the
resolution of this issue before the court. See Pierce, supra, at 1162
(recognizing that courts may consider whether any factors favoring
allocation of initial decision-making responsibility to an agency would be
outweighed by undue delay in resolving the issue). Accordingly, we decline
to cede primary jurisdiction to the Labor Commissioner.
IV.
MDC argues that the district court incorrectly applied the
requirements of NRS Chapters 608, 689A, and 689B—statutory provisions
mandating substantive requirements for health insurance—to the MWA.
We agree with MDC that these statutory provisions do not set the
constitutional standard for the quality of health insurance that allows an
employer to pay the lower-tier minimum wage.
A.
In Western Cab, which was decided after the district court's
grant of partial summary judgment in this case, the court looked to NAC
608.102, rather than NRS Chapters 608, 689A, or 689B, for examples of
"health insurance." 133 Nev., Adv. Op. 10, 390 P.3d at 669-70 (analyzing
whether the MWA is preempted by ERISA). In relevant part, NAC 608.102
requires an employer who pays the lower-tier minimum wage to offer health
insurance that "[clovers those categories of health care expenses that are
generally deductible by an employee on his individual federal income tax
return pursuant to 26 U.S.C. § 213 and any federal regulations relating
thereto, if such expenses had been borne directly by the employee."
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As a result, both parties look to clarify the meaning of "those
categories of health care expenses that are generally deductible" in NAC
608.102. MDC argues that a plan that provides coverage for any expenses
that might be deductible on a federal income tax return qualifies as "health
insurance" and therefore allows an employer to pay the lower-tier minimum
wage. The employees retort that an equally reasonable interpretation of
NAC 608.102 is that a plan must cover all benefits that could be deductible
on federal income tax returns, but they actually assert that employers must
provide comprehensive or major medical insurance policies to employees to
pay the lower-tier wage. Both arguments fail to articulate a constitutional
standard for the MWA, however, because the definition of the term "health
insurance" in the MWA is not wed to a statutory-type analysis of the NAC
or to the provisions of the Internal Revenue Code. Rather, those regulatory
schemes are primarily reference points and useful illustrations of the types
of benefits and coverages that insurance must cover to qualify as health
insurance.
At issue in this case, however, is not the types of benefits
provided and whether they are health or some other category of benefits, for
which a reference to NAC 608.102, NRS 681A.030, 26 U.S.C. 213(d)(1)(A),
or even Black's Law Dictionary may be helpful. 4 Rather, the issue presented
4 For instance, NAC 608.102 references 26 U.S.C. § 213, which allows
a person to deduct expenses for "medical care" from that person's federal
income tax obligation. Deductible expenses incurred for "medical care"
include, in part, payments for "the diagnosis, cure, mitigation, treatment,
or prevention of disease, or for the purpose of affecting any structure or
function of the body." 26 U.S.C. § 213(d)(1)(A). Similarly, "health
insurance" is also defined elsewhere in the law. For example, NRS
681A.030 defines "health insurance" as "insurance of human beings against
bodily injury, disablement or death by accident or accidental means, or the
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by the parties is whether there is some minimum quality or substance of
health insurance that an employer must provide for the employer to pay the
lower-tier minimum wage under the MWA. This question was not argued
in Western Cab, and it is evident from the parties' arguments that NAC
608.102 is an unworkable standard for making such a determination
because there are numerous items that can be included in an insurance plan
that insures against expenses relating to bodily injury and sickness.
To provide just any one of those benefits, as MDC urges, would
allow an employer to qualify for the lower-tier minimum wage with the
provision of even the most meager health insurance plan, such as one dental
cleaning per year. This would leave employees with a lower wage, and no
real benefit in return—a result that would leave the upper tier of the MWA
without significance. On the other hand, to require provision of all
conceivable health coverage benefits, as the employees suggest, would
require an employer to provide health benefits at a cost much greater than
the one dollar per hour of wages saved under the lower tier. This
interpretation would disincentivize employers from providing health
insurance in lieu of paying an extra dollar per hour in wages, which would
decrease the significance of the lower tier of the MWA. Thus, to give effect
expense thereof, or against disablement or expense resulting from sickness,
and every insurance appertaining thereto, together with provisions
operating to safeguard contracts of health insurance against lapse in the
event of strike or layoff due to labor disputes." Black's Law Dictionary also
provides a definition for "health insurance," calling it "[a] contract or
agreement whereby an insurer is obligated to pay or allow a benefit of
pecuniary value with respect to the bodily injury, disablement, sickness,
death by accident or accidental means of a human being, or because of any
expense relating thereto, or because of any expense incurred in prevention
of sickness, and includes every risk pertaining to any of the enumerated
risks." Black's Law Dictionary (6th ed. 1998).
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to the entirety of the MWA's two-tiered approach, qualifying health benefits
must lie somewhere in between these two extremes, such that both tiers of
the MWA have purpose. Our task is to find a guiding principle in the text,
history, and purpose of the MWA and articulate a workable standard to
assess whether a health insurance plan is sufficient to qualify an employer
to pay the lower-tier minimum wage.
B.
Questions of constitutional interpretation are reviewed de novo.
MDC I, 132 Nev., Adv. Op. 76, 383 P.3d at 265. "The goal of constitutional
interpretation is 'to determine the public understanding of a legal text'
leading up to and 'in the period after its enactment or ratification."
Strickland v. Waymire, 126 Nev. 230, 234, 235 P.3d 605, 608(2010) (quoting
6 Ronald D. Rotunda & John E. Nowak, Treatise on Constitutional Law §
23.32 (5th ed. 2013)). Where the meaning of a constitutional provision "is
clear on its face, we will not go beyond that language in determining the
voters' intent or to create an ambiguity when none exists." Miller v. Burk,
124 Nev. 579, 590, 188 P.3d 1112, 1120 (2008) (footnote omitted). However,
where a provision is ambiguous or susceptible to reasonable but
inconsistent interpretations, "we may look to the provision's history, public
policy, and reason to determine what the voters intended." Id. We look to
those sources to give the constitutional provision the meaning that an
"intelligent, careful voter" would ascribe to it. 16 Am. Jur. 2d Constitutional
Law § 75, at 435 (2009).
When voters passed the MWA they sought to provide higher
wages to employees, or in the alternative, health insurance in order to "fight
poverty" and "ensure that 'workers who are the backbone of our economy
receive fair paychecks that allow them and their families to live above the
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poverty line." MDC I, 132 Nev., Adv. Op. 76, 383 P.3d at 266 (quoting
Nevada Ballot Questions 2006, Nevada Secretary of State, Question No. 6
§ 2(6)). This purpose is reflected in the text of the MWA, which mandates
that an employer pay employees $8.25 per hour, or in the alternative, $7.25
per hour plus offer health benefits. Nothing in the text or purpose of the
MWA, however, suggests that the voters intended to create one tier that
was inherently more or less valuable to employees than the other. Rather,
the tiers are different means to the same end—the upper-tier minimum
wage fights poverty by providing higher wages to employees, while the
lower tier fights poverty in the form of a lower wage but the addition of
health benefits.
Given that the MWA provides two tiers in furtherance of the
same purpose, common sense dictates that an employer who pays the lower-
tier minimum wage must offer health benefits that, at the very least, fill the
one-dollar gap in value between the $7.25 per hour lower-tier minimum
wage and the $8.25 per hour upper-tier minimum wage. Therefore, "health
benefits" must mean the equivalent of one extra dollar per hour in wages to
the employee, but offered in the form of health insurance as opposed to
dollar wages. See Calop Bus. Sys., Inc. v. City of L.A., 984 F. Supp. 2d 981,
1003 (C.D. Cal. 2013) (noting that Los Angeles' similar two-tiered ordinance
created "a minimum wage that certain employers must pay, and permits
them either to pay it all in cash or through a combination of cash and
benefits contributions").
We hesitate to ascribe any further substantive requirements to
health benefits beyond this simple meaning found within the text and
purpose of the MWA. See 16 Am. Jur. 2d Constitutional Law § 3, at 325
(2009) ("[C]onstitutions traditionally do not deal in details, but enunciate
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the general principles and general directions which are intended to apply to
all new facts which may come into being and which may be brought within
these general principles or directions."). It is unlikely in enacting the MWA
that the voters considered and intended to incorporate the entirety of
Nevada's statutory scheme regarding health insurance into the meaning of
"health benefits." See Dist. of Columbia v. Heller, 554 U.S. 570, 576 (2008)
("In interpreting [the Constitution], we are guided by the principle that
' [t]he Constitution was written to be understood by the voters; its words and
phrases were used in their normal and ordinary as distinguished from
technical meaning '") (quoting United States v. Sprague, 282 U.S. 716, 731
(1931) (alterations in original)). Nor should we afford such a meaning to
health benefits when it might relate or connect the MWA to an ERISA plan,
such that ERISA preemption concerns would arise in the enforcement of the
MWA. See Wash. Ass'n for Substance Abuse & Violence Prevention v. State,
278 P.3d 632, 639 (Wash. 2012) (presuming "that an initiative is
constitutional, just as [a court] presumes the constitutionality of a statute
duly enacted by the legislature"); see also Calop Bus, Sys., 984 F. Supp. 2d
at 1003 (where a two-tiered minimum wage law that did "not require that
employers provide health benefits, dictate the level or type of health
benefits an employer must provide, or state which health benefit plan an
employer must choose" was not preempted by ERISA). Instead, the
simplest and most straightforward meaning of "health benefits" is a benefit
in the form of health insurance at least equivalent to an additional one
dollar per hour in wages. This ensures that employees may receive an equal
benefit under either tier of the MWA, in furtherance of the MWA's stated
purpose of fighting poverty. See Opinion of Justices to House of
Representatives, 425 N.E.2d 750, 752 (Mass. 1981) ("[W]e must, if possible,
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construe the amendment so as to accomplish a reasonable result and to
achieve its dominating purpose.").
Accordingly, an employer is qualified to pay the lower-tier
minimum wage to an employee if the employer offers a benefit to the
employee in the form of health insurance of a value greater than or equal to
the wage of an additional dollar per hour, and covers "the employee and the
employee's dependents at a total cost to the employee for premiums of not
more than 10 percent of the employee's gross taxable income from the
employer." Nev. Const. art. 15, § 16. An employer who pays the lower-tier
minimum wage will have the burden of showing that it provided the
employee with a benefit in the form of health insurance equal to a value of
at least an additional dollar per hour in wages. If an employer cannot offer
such insurance to an employee, the employer must pay the employee the
upper-tier minimum wage.
IV.
We therefore grant petitioners' request for extraordinary relief
and direct the clerk of this court to issue a writ of mandamus directing the
district court to vacate its order granting partial summary judgment and
hold further proceedings in accordance with this opinion. In doing so, we
clarify that an employer may pay the MWA's lower-tier minimum wage to
an employee if the employer offers health insurance at a cost to the
employer of the equivalent of at least an additional dollar per hour in wages,
and at a cost to the employee of no more than 10 percent of the employee's
gross taxable income from the employer. However, because applying our
holding to the health insurance offered in this case requires further
development in the district court, we withhold judgment as to whether the
SUPREME COURT
OF
NEVADA
() 1947A oglaw
17
employers in this case qualified to pay one dollar per hour less in wages to
employees who were offered health insurance.
We concur:
4,frie , C. J.
Douglas
J.
Cherry
/Jan c-62.-32.\ J.
Ha esty
01.14,itetairs J.
Parraguirre
-LC J.
Stiglich
SUPREME COURT
Of
NEVADA
18
(0) 1947A
11151
Opinion
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