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Thomas S. CUfrott (Bar No. 110357) Colin C (BärNö. 195520)
Attorneys At Law
2033 North Main Street, Suite 800
P.O. Box- §035
Walnut Creek, CA 94596
Telephone-    (9*5) 930-6^00
Faesitniie;     (925) $30*8520
P  '    ^     e D
Oifirk Qf the Superior Court
' FEB 1 7 2004 By; G. LMT, Deputy
Attorneys for Defendants
STATE ÖFCAL^OIMA, A PUBLIC ENTITY
SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SAN DIEGO
CHARLES. ERVTN, SHEARWOOD FLEMING, JR., CHRISTINA VASQUEZ, AND THE- UNION OF NEEDLETRAI5ES, H^USTRIAL & TEXTILE EMPLOYEES, AFkCIO. '
v.
STATE OF CALIFORNIA, a. public, entity; NOteEN BLQNilM, and iti.
he.r ofgcial c'agac%; JOlEN M. KATELLE, individually a&d in his afSc&l capacity; TlMOfHYMAlSK, MivitoUy and in his. ofScial capacity; REGINALD ESTES>? individually and: in his official capacity; PIERRE SLEMAN, individually and in his official capacity; CMT BLUES', INC.; NO FEAR, INC.; IHTE-^NATIONAL NEWS mC; NiTCHESj INC.; ' TRIOTDAD TEES; arid DOES 1 through 5'0 inclusive.,
Defendants.
CASE NO. GIC74Q832
STIPULATE© INJUNCTION ANT)
Flaintiff and Defendant ("the Parties")' hereby stipulate: to the: entry of an injunction ("Stipulated Injunction") which shall be effective for a period of two years from the date of issuance and maybe extended and/or terminated by the Court up'on a showing, of good cause.
STIPUtATBp INJUNCTION AND PROPOSED QRDEft
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The Court will retain jurišdMoii. for- t&e; purpose of enforcing, modifying and/or dissolving trie Stipulated iÉ^uhófioiij in coxtfhw&ty with the applicable provisions Qf'Proposition 139, until the-dáte of its" expiration. The. Stipulated Injunction includes the foUowifig terms:
Í •       Rmťiting, 1% Parties shall report t© the Court aft®? §0 days from this Stipulated mj Unction (and. 90 days th^eáftěr) cmúei$án$ the status of IMe&dánťš progress toward c^plying with ífce injunction á&d óa such tarther date's as ordered by the. Court; The first reporting date ("íuíSt. kepórtirig Date") shi be on April 26, 20,04. The second reporting dáte ("Second Reporting Date") shall be July 26,2004 (the actual hearing dates shall be determined by tib- Court). Defendant shall subini-t a written, report ("Written -Refertf) to to Court (and Plaiiitifi). 20 days" before any Reporting Dáte. Člaiňliífmay submit comments tó' the Court (and Defendant) on tíúš report, in writing, 10 days before any Reporting Date. Defendant may submit a reply to. the Court (and Plaintiff) to ariy šuoft c^n^ents* ia writings 5 days b'efbre any importing Date.
2. ^lans aad Butv.S^ Duty Statements shall- include a description of tasks, to be peffonftěd, machine Ušed and sMflf required fbr ©Mi job. The Wage Plan will. show tUe planned scbedme of wages' for each job description and the number of ěrn^íoyées in each job. Defendant shall require each future, joint venture empkyej' to submit a- Wage Plán and Dutý Statements prior to comrfieneing business andv thereafter, to update such Wage Plaň and Duty Statements atf an annual basis. Each Wage Plán shall be s.kňilái to wage plans o.f the-employef? s outside factories (if any) or- be based Oii corn|jara.ble wages- for síi&iíař work in the locality tfftfég. prison, takfeg tni© aécOnrtí factors' such as seniority, performance, ťhtó technical nature of the work being perfbimed and the provisions of Proposiftdit 139.
3. Defendant shall make reasonable and good faith efforts to obtain Wage- Plans and PUty Statements, (oř the. mišrrnatioň contáiried therein) prior to fe: first Reporting 0ate fr'om cun-Qiii joint venture employers and. require, updates Of suah Wage Plans; and Duty Statements on an annual basis. A copy of any Wage. Plan and Duty Statements received from a currcftt joint venture employer shall be supplied to Plaintiffs- counsel within thirty (30) business days of their-reeeip.t by Defendant. Plate! £f shall provide any comments wi&riii ten (10) days of receipt. Defendant shall report to' the' Court regarding- progress iii obtaining these Wage Plans and Duty
STIMULATED INJUNCTION AND PRÓPÓSBQ ORDB&
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Statements íií the First Written R^ort.
4; (      During the period of this Stipulated mjniiction, a copy of the Wage Plan; and Duty Statements received from each future joint venture employer shall he supplied tó Plaintiffs counsel within thirty (30) days of receipt. Plaintiff shall provide aiiy comments within fifteen (15) days of receipt.
5. Prior to providing any Wage Plan and Duty Statement ta Plaintiff s-o^unsel, Defendant may red&ct any personal identifying inféřmaáon from such Wage Plan and/or Duty Statement. Any Wage Plans and Duty Statements provided to Plaintiff s counsel shall be subj eot to the same protective order regarding confidentiality previously entered iri this case, and in particular, Plaintiff agrees not to, disclose any sii£h information to any third party other than for purposes expressly contemplated herein.
6. RecordriCeěaí&g Reqttfťerňe&ts. Defendant shall inforůa all joint venture employers in writing, of their obligation to comply with all applicable record-keeping requirements Set forth in fe California Labor Cede and applicable Industrial Welfare Commission ("ÍWC**) Wage Orders. Defendant shall include a přovisioii in all future-joint venture contracts making, compliance with these record keeping provisions an. express condition of the contract. Within thirty (3.0) days of the date, of entry of the Stipulated injunction, Plaintiffs counsel will serve a lišt of all such requirements, on counsel for- defendant. In the event of a dispute concerning these requirements, the. parties agree to meet and confer- before the riext reporting date.
7. Payroll Pata. Defendant shall serve PlaintifPs counsel with copies of all payroll data reflecting the hourly wage of employees of each joint venture, employer commencing June 1, 2004, aid thereafter every 90 days, for the period of the Stipulated Injunction (or less if ordered by the- Court). Such data will be subject to. the protective order regarding confidentiality previously entered iri this case, and* hi. addition, šach data, may be redacted to. prevent personal identiflcatÍQíi bfontiatioii from being disclosed. Plaintiff agrees not to disclose, any such reformation to any third pafty other man for purposes expressly contemplated herein Payroll data shall correlate the individual inmate's gross wagě§j hours worked, and rate of pay to his/her
CSOOQ2/337236,l -3. .
STIPULATED INJUNCTION AND PROPOSED ORDER ' "
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Duty Statement.- This Court may, on gööd Cause: grant Plaintiffs request to conduct a walk through of the premises of any joint venture program on the terms and conditions of the walk through conducted by Plaintiffs designated expert in the above-captioned litigation,
8. Comp&r able WagePlaas. Based 04 the Wage Flails submitted by joint venture, employers, as described in Paragraph 2 above, Defendant shall take reasonable steps, to identify the comparable Wages required to be' paid as required by Penal Cods § 2717.8. in the event the employer does not have non-irirnate. employees perfbmnhg Similar work for that employer, then, in identifying the comparable wages, Defendant shall consider factors such as the wages paid for work of a similar nature- in the locality in which it is performed, the tenure of the employee who occupies the position, the requirements of Proposition 130* and available wage survey data from the ÉDX* (and other sources).
9. Defendant will complete steps to amend the Department Operations' Manual (DQM) and Department of Corxectionö Administrative &egiu\äti4>Ös tö' regulato the manner within which the requirements of Proposition 139 regarding comparable wage rates for joint venture" programs are to be monitored. Defendant will serve Plaintiff s counsel with a draft of its proposed revisions at the time the CDC approves the draft, not later than 6 months from the" date of entry of tfcis. injection (if available) or as söon thereafter as it is available. Defendant will consider any comment or objections, from Plairitiff during the public comment period. Plaintiff reserves the right, to petition the Court for appropriate relief if Piaimiff believes Defendant's . revisions do not comply With the requirements of Penál Code § 2711-8.
1.0.     Inrfiaté r^otižícation. Defendant shall take reasonable steps to require joist venture entities to advise hi writing all current arid future inmateä, employed in joint venture programs of their limits under Penál Code f 2717.8, the IWC Wage Orders, arid relevant California Lahor Code provisions,. These rights will be explained in a notice which Defendant will require, each new joint venture employer, to {Söst in a pfójmnsht location at the workplace, and in a notice to be provided to each inmate worker when the worker agrees to- participate in the program. Such notice shall also be posted in the existing joint venture area;
CDCO0M3723M 'A
STIPULATED I>UUNCŤI0Ň AND PROPOSED ÖRfeER. ."'
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11. Defendant will provide Plaintiffs counsel with a copy of the draft noticc/s described above. The parties will meet and confer in good faith regarding any comments or obj ections Plaintiff may have to the notice/s.
12. Grievance Procedures. Defendant will notify all inmates employed at Joint Venture Programs of their right to file complaints regarding claimed violations of their rights under Penal Code § 2717.8, relevant provisions of the Labor Code, and the IWC Wage Orders. Defendant shall make reasonable and good faith efforts to. ensure that the filing of a 602 does not lead to a reprisal by the joint venture employer and will promptly investigate such complaints.
13. Security Bond. Beginning on the date the Stipulated Injunction is issued* each new joint venture employer will be required to post a Security Bond (or the equivalent) in the amount of two months wages for the workforce contemplated after 6 months of operation. The bond (or its equivalent) shall be retained by Defendant for the duration of the contract and, in the event that the bond is called by Defendant, the funds shall be used first to pay past due wages (distributed according to the regulations promulgated in accordance with Proposition-139). In the event of any surplus, such surplus may be used to pay amounts due to the State.
14. Default Notification. In the event that a joint venture employer fails to pay the Ml payroll due and owing, Defendant will notify the Court and Plaintiffs' counsel of the default in the next applicable Written Report and shall inform the Court of what steps are being taken to remedy any such default
15. Back Comparable Wages from Western Mfg. and Pub Brewing. PlaintifThas alleged that Pub Brewing and Western Mfg., also known as On Display, have failed to comply with the comparable wage provisions of Penal Code § 2717.8. Defendant shall, as part of its obligations pursuant to this Stipulated Judgment, investigate the issue of Pub Brewing and Western Mfg.'s prior compliance with comparable wage provisions of Penal Code § 2717.8. If Defendant concludes that either of these employers has failed to comply with the comparative wage provisions of Penal Code § 2717.8, Defendant shall take reasonable steps, in accordance with the provisions of the contract with the employer and/or the P enal Code, to secure payment of any wages owing. Defendant shall report on this issue, including (but not limited to) its
CDC002/3 3723 6-1 5
STIPULATED INJUNCTION AND PROPOSED ORDER
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assessment of any back comparable wages owing and the employer's ability to pay any or all of such amounts, to the Court at the Second Reporting Date (and 90 days thereafter if appropriate). Plaintiff reserves the right to contest Defendant's determination as to. comparable wages owing and to submit her own report for the Court's review and consideration of this issue.
16. Mediation by the Court In the event that the Parties and the representatives of Western Mfg. and Pub Brewing cannot agree upon an amount to be collected from these entities, the parties shall make reasonable efforts to bring these joint venture employers into the Court for mediation.
17. Collection of Back Wages from Pub Brewing. Defendant contends that it has made reasonable and good faith efforts to collect the amounts it determined are due and owing to employees of the Pub Brewing Company for back wages not paid. Plaintiff disagrees. Defendant shall make reasonable good faith efforts to collect the amounts it deteraiined are due and owing to inmate employees of the Pub Brewing Company, and shall update the Court on efforts to collect the amounts due in the reports referenced above. Effective immediately, Defendant shall take reasonable steps to ensure that Pub Brewing Company may not remove its operating tools and machinery from Defendant's prison facilities unless that employer posts a bond for the amount of back wages due and owing to inmate employees,
18. The State believes that the existing counterclaim against CMT Blues in the ongoing arbitration proceedings already incorporates a claim for back wages due and owing to all former inmate employees of CMT Blues. Plaintiff disagrees. Nevertheless, Defendant agrees to seek to amend its counterclaim to expressly incorporate such claim.
COSTS AND ATTORNEYS" FEES In addition to reserving jurisdiction to enforce this injunction, the Court reserves jurisdiction to determine the issue of attorneys' fees and costs. Any claim for costs and/or attorneys* fees shall be served and filed by May 1, 2004. Any opposition to any request for attorneys' fees and/or costs shall be served and filed thirty (30) days before the hearing date. Any reply shall be served and filed fifteen (15) days before the hearing date. This paragraph shall be without prejudice to any application for attorneys' fees in consequence of the Stipulated ■
CDC002/337236-I g .
1 ' STIPULATED INJUNCTION AND PROPOSED ORDER "
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Iiijuiictioit Counsel snail confer and agree on a suitable hearing data
IT IS SO
Dated:  FEft 1 7 2004
Dated:
Dated:   / /.
CDC0D2/337235-1
WTJ,L|AM C. FATJg-JUDGE Of THE: SUPERIOR COURT
PLAINTIVE
CRISTTNA VASQUEZ
STATE^Of CALIFORNIA:
By:    , f Uy-w^,     ^ ■ C^<^-iC^
STIPULATED INJUNCTION AND PROPOSED QRDEi"
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