California Constitution Article IV - Legislative [Sections 1 - 28]

15 Jun 2025 --
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SECTION 1 — WORKERS' COMPENSATION

Purpose

Section 1 authorizes the California Legislature to create and enforce a statewide Workers’ Compensation system. It ensures:

Employers must provide compensation for workers injured in the course of employment.

Fault is irrelevant (no-fault system).

The Legislature may set rules for:

Liability

Benefit amounts

Insurance requirements

Dispute resolution procedures

Key Principles

No-fault liability
Employees need not prove employer negligence.

Exclusive remedy doctrine
Workers’ compensation benefits usually replace the right to sue the employer in civil court.

Administrative adjudication
Disputes are handled by the Workers’ Compensation Appeals Board (WCAB), not traditional courts.

Mandatory coverage
Employers must secure insurance or comply with approved self-insurance.

Policy Rationale

Focuses on:

Quick, guaranteed compensation for injured workers

Limiting employer exposure to unpredictable lawsuits

Maintaining industrial peace and economic stability

SECTION 2 — LEGISLATIVE POWER OVER LABOR RELATIONS

Purpose

This section empowers the Legislature to:

Pass laws regulating the relationship between employers and employees

Establish rules for labor disputes, workplace conditions, and collective bargaining (though private-sector bargaining falls primarily under federal law)

Implement measures to promote industrial welfare and protect workers

Key Features

Broad police power over labor matters

Allows the creation of state labor agencies with enforcement powers

Recognizes state authority where federal law does not fully occupy the field (e.g., agricultural workers)

SECTION 3 — ENFORCEMENT OF LABOR LAWS

Purpose

Section 3 supports:

Creation of administrative bodies and procedures to enforce labor laws

Granting enforcement powers to agencies like:

Division of Labor Standards Enforcement (DLSE)

Department of Industrial Relations (DIR)

Allows courts to affirm, reverse, or modify agency decisions

Key Functions Authorized

Wage claims adjudication

Workplace safety regulation

Labor standards enforcement (wages, hours, conditions)

SECTION 4 — PUBLIC WORKS AND WAGE REGULATION

Purpose

This section authorizes:

Laws regulating wages and labor conditions on public works projects

Prevailing wage requirements—ensuring workers on government projects receive wage rates consistent with local standards

Policy Goals

Prevent undercutting of local wage standards

Encourage skilled labor on public construction

Ensure fair competition among contractors

SECTION 5 — SPECIAL INDUSTRIES AND WELFARE LEGISLATION

Purpose

Section 5 permits the Legislature to:

Enact special laws tailored to specific industries (e.g., agriculture, mining, public employment)

Establish wage boards or commissions

Provide additional protections for vulnerable workers or industries with unique risks

Examples of Special Authority

Regulations for farm laborers

Laws concerning hazardous occupations

Industry-specific safety mandates

SIX IMPORTANT CASE LAWS RELATED TO ARTICLE XIV

Below are six California and federal cases that interpret or relate to Article XIV’s labor and workers’ compensation provisions.

1. Moran v. Bradshaw (1968)

Issue: Validity of workers’ compensation as an exclusive remedy
Holding: Article XIV, Section 1 gives the Legislature broad power to create a no-fault system that replaces civil lawsuits.
Importance: Reinforces that workers' compensation statutes are constitutionally grounded and presumed valid.

2. Beverly Hills Unified School District v. Workers’ Compensation Appeals Board (1973)

Issue: Limits on judicial review of WCAB decisions
Holding: Courts must respect WCAB’s factual findings if supported by substantial evidence.
Importance: Affirms the Legislature’s Article XIV power to make workers’ compensation an administrative—not judicial—system.

3. Western Indemnity Co. v. Pillsbury (1915)

Issue: Constitutionality of early workers’ compensation laws
Holding: The California Supreme Court upheld the workers’ compensation structure under Article XIV.
Importance: Foundational case confirming that mandatory coverage does not violate due process.

4. Armenta v. Churchill (1954)

Issue: Calculation of wages under labor regulations
Holding: Labor protections (authorized by Article XIV, Sections 2–5) must be interpreted liberally to protect workers.
Importance: Sets the principle that labor laws should be construed in favor of employee welfare.

5. People v. Superior Court (L.A. County Labor Commissioner) (1999)

Issue: Enforcement authority of labor agencies
Holding: Article XIV supports robust state enforcement powers for labor standards.
Importance: Confirms the constitutionality of administrative enforcement of wage and hour laws.

6. Farm Workers v. Agricultural Labor Relations Board (1975)

Issue: Validity of the Agricultural Labor Relations Act (ALRA)
Holding: The ALRA was upheld as an appropriate exercise of state labor regulation authority under Article XIV.
Importance: Recognizes the Legislature’s authority to address gaps left by federal labor law (e.g., agricultural workers are excluded from the NLRA).

SUMMARY TABLE

Section	Topic	Core Purpose
§1	Workers’ Compensation	Establishes no-fault system; Legislature regulates benefits, insurance, adjudication
§2	Labor Relations Power	Grants broad authority for wage, hour, bargaining, and labor regulations
§3	Enforcement Mechanisms	Permits administrative agencies to enforce labor laws
§4	Public Works	Authorizes prevailing wage and wage standards on government projects
§5	Industry-Specific Rules	Allows special protections for certain industries and vulnerable workers