144 F.4th 354
1st Cir.2025Background
- Employees of Veolia Water Contract Operations USA, Inc., sued for failure to pay prevailing wages under the Massachusetts Prevailing Wage Act (PWA) while operating Springfield's water and sewer facilities.
- The dispute centers on whether Veolia, under a contract permitted by a 1997 Massachusetts Special Act, is required to pay prevailing wages for certain employee work.
- The Special Act authorizes the Springfield Water and Sewer Commission to contract out for operation and improvement of its facilities, and modifies common public works contracting rules.
- The Special Act references the PWA but does not explicitly clarify if Veolia must pay prevailing wages under these contracts.
- The district court ruled for Veolia, holding the Special Act exempts Veolia from the PWA; employees appealed to the First Circuit.
- The First Circuit determined that unresolved and significant questions of Massachusetts law require clarification by the Massachusetts Supreme Judicial Court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Meaning of "construction and design of improvements" in the Special Act | Phrase includes expanded PWA definition of "construction" | Applies only the ordinary (narrow) meaning of "construction" | Certified to MA SJC for interpretation |
| Whether the Special Act exempts Veolia from the PWA | Special Act incorporates PWA and thus wage obligations | Special Act's exemptions preclude PWA from applying | Certified to MA SJC for determination |
| Compatibility of Special Act with the PWA under Metcalf | Provisions can be reconciled; PWA applies unless clearly incompatible | Acts are incompatible; Special Act overrides PWA | Certified to MA SJC for determination |
| Scope of Section 6 (Special Act) as to contractor obligations | Section 6 applies to all work under contract, including to own employees | Section 6 only applies to subcontracts, not direct employment | Certified to MA SJC for clarification |
Key Cases Cited
- Donis v. Am. Waste Servs., LLC, 149 N.E.3d 361 (Mass. 2020) (describes purpose of the Prevailing Wage Act)
- McCarty's Case, 837 N.E.2d 669 (Mass. 2005) (concurrence articulates purpose of PWA)
- Mullally v. Waste Mgmt. of Mass., Inc., 895 N.E.2d 1277 (Mass. 2008) (discusses wage parity in public construction)
- Metcalf v. BSC Group, Inc., 214 N.E.3d 1043 (Mass. 2023) (analyzes compatibility between special statutory schemes)
- MacLaurin v. City of Holyoke, 56 N.E.3d 1254 (Mass. 2016) (provides method for statutory interpretation in Massachusetts)