Gonzalez v. Beck
filed December 27, 2007, Second District, Div. Five, Cite as 2007 SOS 7617

Employer Allowed To Seek Relief For Default

The issue stemmed from a worker’s claim for unpaid wages in which the employers failed to answer and appear during the administrative hearing. When brought to a trial court for judgment, the employers petitioned to exhaust all remedies for settlement with the labor commission, which petition the appeals court granted.

Josepha Gonzalez worked as a caregiver and housekeeper for Vladimir, Slavko, and Slavika Beck. After leaving her employers, Gonzalez filed a wage claim with the California Labor Commissioner, alleging that she had been underpaid.

When the Becks failed to answer or appear at the administrative hearing on her claim, Gonzalez obtained an award upon which judgment was later entered in the trial court.

The Becks moved to set aside the award.

However, the trial court denied the motion, finding that the Becks had failed to exhaust their administrative remedies.

The Becks appealed on the grounds that they were not required to exhaust their administrative remedies under Labor Code §98(f) because they did not receive actual notice of the administrative proceedings until well after judgment was entered in the trial court.

On appeal, the Second Appellate District affirmed a judgment on the following grounds:

• that an employer who fails to appear at an administrative hearing on a wage claim may not seek relief from default in the trial court


• that relief must first be filed prior to court judgment before the Labor Commissioner


• that the Becks are required, in accordance with Code Civ. Proc. §473, to set aside the award before the Commissioner prior to seeking judicial relief.


• that the right to file an appeal must be distinguished from the right to seek relief from default.

The Second Appellate District court therefore allowed the Becks to exhaust all remedies before the labor commission in order to seek relief from default as required under Labor Code Sec. 98(f), in accordance with Code of Civil Procedure Sec. 473.