In Sheppard v. North Orange County Regional Occupational Program, published December 23, 2010, the 4th District Court of Appeal, Division 3, ruled that the minimum wage law imposed by the Industrial Welfare Commission‟s (IWC) wage order No. 4-2001 (title 8, section 11040 of the California Code of Regulations) applies to California public school district employees, as employees of a subdivision of the state. The court further ruled that although public employment is held by statute, the contract clause of the California Constitution (article I, section 9) protects a public employee's rights to payment of salary that has been earned. A public employee may therefore have a breach of contract claim for wages required by the minimum wage law but not paid. (The court did not decide whether the plaintiff in Sheppard had successfully pleaded such a case.)
But the court agreed with the trial court that the plaintiff could not assert a quantum meruit cause of action for the wages. Government Code section 815 bars common-law causes of action against public entities. Quantum meruit is a common-law cause of action.