Case Information

*1 QBffice of tfje !ZMmep QBenecal @date of Qexa$

DAN MORALES

KrroaNEYoENEaAL March 12.1998

The Honorable Rent 0. Oliveira opinion No. DIM-469 Chair, Committee on Economic Development

Texas House of Repnxahtives RC: wlldha Govantnalt code se&ion P.O. Box 2910 2258.021 lrquim Midweatan state university Austin, Texas 78768-2910 to pay the prevailing wage rate to ekctriciaus

pUf~WOIiCOXlBOlillSCiUlCCHall,d

-cIuestions iw-=9 Youalsoaskfi~mare~cqutstionsabout~~codcchaptcr~8. First,yon askwhcthaacontractorvio~~chaptabypayingoneworktrtwodi&cmt~ofl#ly. We corscludcitisnotaviolationasamattaoflaw,altaltaltaltaltaltalu~itmaybeaviolationasamattaoffad Second, you ssk whe-tha it is a violation of chapter 2258 to employ a craft or type of worka not listedintheoriginalpubli~workcontra& Weconchdethata conbcbxmayhireacraftortype of worker not listed in the contract’s wage debmhation so long as the public entity appmves, in ~~hiringanddetamincsthcprevailingwageratetowhichtheworkaiscnti~~ Third, youaskwhethathe~dollarpenaltysection2258.023(b)leviesonacontractorwho failstopay

llmcisaoqostiontichapta2258~llostoworkatMidwcatcutStatoUnivcrsay ifbidaftaS+mbcr1,19!95. Thcquestionxmaim wbctba rutf.] 5159a might take prcccdcllaovaChaptcr2258-itwas~hthc--. ‘lb public body lacks kgislative ability to mwite law, thccefi~rc it appears that Chpter 2258 would ia fact apply to the ES&n project bid March 20.1996.

We note hat the kgi&tuw repealed V.T.C.S. &le 515% in 1995. See Act of Apr. 25,1995,7&h Lag., RS.. cb. 76, 0 5.49(b), 1995 Tcx. Gen. Laws 458.505. The substam of that article is codified at Gwenmeat Code cbapta 2258; auycbaogosmadc as arcsultofthemditicationdificationPrcnoDsubatantivc Seeid. 55 1.01,5.49(a), 1995Tcx. Gen.Laws458, 458.502-05.

ThcHonorableReu.50. Oliveira - Page 2 (DM-469) is mandatoIy or optiotlal. We CoIkClude papent Of fhC penalty is

&e pmrailing *0 * macadatory. Forrrth,youask~the~~~penaltyisrsqrriredtven~~ewoika has agnedto~twages~l~&qeva&gwage. Weconcludethatitis. Fifthaudfinelly,youask how a worka misclass&d as an appre&~, end who thaefore received a reduced wage, may d&t the dX&nce between the wages the worlca should have received and the wages he or she actually recciv6d. Assuming h4kiwestem State University has de&mined that the contractor here chapter 2258, we believe the worka snd the contractor must arbitrate the issue. has not v&&d Welmdastandthatyouraise~~isrmes~~IetanationalBrothahoodofElactrical Workas alleges that A-Bar Elect&, Inc., which we undastand to be a subcontmctor on the remodelingofthcBolinScicaceHa4ispayinglcssthanthelocalprevailingwagcrateto ~&&&us. ~~~if~~~dlegesinpartthatatlcadomworkcr~loyedby A~Ekctricwas~~infomdiffaent~oPtypesof~raceivinga~wrgcntte

foreachaaftortype. Additionally,itisaUegedthatworkaswas&ssifiedinsome~ortypcs ofworkthatMidwestanStateUnivasityhadnotktedinthecontra&z Monova,makriakyou s&withyournqucstcontendthatA-BerEle&ichas,inseveralManocs,misclassifiad ~~~~arappnnticcs,thadryreducing~wagcspaidthose~~iciaaSbalowtfie preva%qwagelevelfbrjoumeymaL 3 WewkstaudthatMidw&auStateUnivasityandA-Bar &etric eontest these allegations. This office is not a fact-finding body: and we assume for purposesofthisopinionthattheaUegationsaretrue.

You~einyonrl~totfikFoffict~thcBolinscicnctHallprojcctissubjcctto G~anme&Code~hapter2258,audweacceptyour~without examihgit huyevalt$ wemustrelyonyour ~bccauscwehavenot~adesaiptionoftheprojectbeyond sn iudication that it is a remodeling project. Accordingly. we will discuss next the pertinent pnMionsof&aptes2258.

Govenun& code section 22S8.0Z15 entitles a worker employed on a public work to wages ~toargreaterthanthcpmrailingwagerafeinthclocalityinwhich~workisbcingpaformed

BIGHT To BE PAID PREVAJLXNG WAGE RATES. (a) A worka employed on a public work by or on behalf of the state or a political subdivision of the state shall be paid:

The Honorable Red 0. Oliveira - Page 3 @H-669)

(1) not less than the gaxxal pmkling rate of pa diem wages for workofasimilarcharaderinthelocalityinwfiichthcworkis P=fommad;c

. . . . @) Subsection (a) does not apply to maintenance work (c) A worka is employed on a public work for the pmposes of this sectioniftheworkaisanployedbyacontmctororsdcodxMinthe executiou of a con&act for the public work with the state, a political subdivisionofthestatc,oranyoffi~orpublicbodyofthestateora poEtiealtxubdhsonofthestate.’

supaviscsordircct~thewo7lc.~ Thepubliclnxiymustspecifyiuthecallforbidsaudthecoutract thepreva&gwagerateforeachaaftortypeofworkanccessary toexeeutetheco~

S~,acontrector’0~ishircdtopafaanthc~~”~~payworhrs~loyedin thecJrecrrtionofthe~~llessthanthcprevailingwageratespacifiedinthccontract*1 A conWdorwhoviolatestheprevf%gwageraterquiremeutmustpayapenaltyz

AC0utlXW . ..whoviolatesthissection&allpaytothestateora political subdivision of the state on whose behalfthe contract is made, $60 *4 lXeHonorableRen~O. Oliveim - Page 4 W-469)

foreachworkaanployedfweachcalcadardayorpartofthcdaythatthe worka is paid less than tbe wage mtes stipulated in the contmcL’2 W~thissummaryofchapter2258,wetumtotheisswsyouraise. Weuu&de,inauswer conha&rhiredtowodcontbeBolinScieuceHaUprojeotmustpay toyourmhdq~estiaz~a m,lessthan~pnvailingwagcratetoel~~worLingontheprojedunlcsstheworkislimited tomainkmance. GovemmaKodesedion2258.021(a) a&lesawodceremployedonapubli~~work projedonbehalfofthestatcorapoliti~subdivisionbM,lessthaathcprevailingwageratc. Addition&y, seotion 2258&23(a) mquircs the oo&&or onapubl+workpxojeotto pay workers onthepmjectnolesstbimthepreva&gwagerate. Mainteaaeceis,howeva,exccpted&nnthe jmvaihgwageratemquirem~” Asthisofficepreviouslyhssssi~%ai&mme”mfa~t~ odimyupkcepandrq7aimneccffarytoprcsave~ingoodumditi~M WhethertheBoliu ScienceHallprojectismaintaramxisa~~offadthatis~amcaabetothtopinion ~roccs.7 Ifthcprojectisa~~projecfap~uDionbasallegcdandasthtttrm %mdehx@iscommonlyundastood,wesutmise the pmjec3 involves more than ml6

Inanswatoyourfirstspecificquestl~weconcludethata~ dOCSUOtViOhtC chapta2258asamatkroflawbypayingasinglewoAatwodifka&wagemtes. Inouro@km, theprevahgwsgemteattscbestothejobpafbrmed Ifanhxiividualpafinmsdiffenmtjobs,he orsheisaltitledtobe compenSateaatthepnwaGngwagemteforeachjob. So,forexample,ifone worka WO&S on Monday aa a stonemason and on Tuesday as a cspenter, he or she is e&led to mxive stonrmason’s wages for Monday and carpenter’s wages for Tuesday,

Fmm the exempkuy situations the union has detded,” we gatha that, among other things. the union is concaned that individual workers have been classed f4s joumeymul for some oftbe worktheypaformedandasepprentccsforothawok Wedonotbelievechapta2258isviolated

“Id. 5 22.58.023(b); see aho id. 0 2258.022(c) (rennirinp public body to qeciijt pt-mibg wage ates in oeohad). Padtymmios.apubliclmdycollcdsdoaotgototbermdapaidw0rkas. Rathec~tbcpubliobodymst~~~ themonitstooffsctc~stsinamadi11administicringcimpter2258. Seefd.~W8.023(d).

“See Id. 5 2258.021@).

“See Atmaey Gcnad Ophion O-1216 (1939) at 23 (and -OitOdthcrcin). ~~~~.,AttomoyGeaQal~~DM-98(1992)rt3.H-56(1973)~3,M-187(1968)at3,0-W11(1940) at2 *5 (DN469)

The Honorable Ra16 0. Oliveira - Page 5 inonecraftandanspprahxinanothaispaid ifanindividuslworkawhoisajoumeyman accordingly;forinstance,inthcGxamplewejustusad,aworkamaybcajoumeymanstonemason but an apprentice carpenter. Neveaiheless, we assume the union is concuned that one worker. a jo~~~~joumeyman’swagesfor~butnotall,oftheclectrical~orkthe

worlcapafbrms. Forthe rendnda of the electrical work, the wotka receives apprentice’s wages.

Whetha a worka is a journeymsn or an spprentice is not a question requiring a legal lntaprecston of chaptex 2258, which does not dihgukh betwm the two. Ratha, it may be a qucstionofcontract~~o4ataskUlisoffi~isnotbquippadta~~” Itisalsoa question of f&it9

bodyhas~theapporhmitytoapprovethc.hiringandtodetcrminethcprtvailingwagtratcto whichthenewchsificationofwotkaisentitled. Wenote,ofcourse,thatsedion2258.OLQreqks apubliobodytospacifyin~caLiforbidsandthe~thcgcneralprevailingeratcWor tachaaftottypcof~~ncedcdtocxccntethccontract....” Butwecsnuotsaythatthe kgi&urehtendedbythistorestri~ipublicbodyorits contm&rhmhiringclassZ~onsof ~thenccdforwhichwas.notoriginallyforeseca,toraspondtoasituationdiscovertdafta thepublic-wohpmjecthssshted. Forexsmpl~inthecourseofaremodelingpmjec&pa&sto tbe~maydisoova,asthcplastacomcsdown.~damage~carmotbepropaly ~byrolyofthccsaftsortypesofworkaslistedinthecontraa Inourview,thelegi&ure ~bythc~ofsacti~~8.022to~thepubIicbodytaappnnrcinadvanctevay

classification of worker that the contractor hires sn& most importsntly, to set the prevaihg wage *6 The Honorable Re& 0. Oliveira - Page 6 (Dn-469)

ratetowhicheachclassZcatiionofworkaisentitlsdpo Solongasthepublicbodyhssinplacea systunwha&y,priortothehiringitn5vkwsa amtra&YsqucsttohkaaatIortypeofwodca natspacifiedin~e~andddamimsthel~pnvailingminimumwageratc,we&not believe a eontractor who complies with that system violates Ci~vanmd Code chspta 22.58. A co&actor may not, howeva, hire a cratI or type of worker if the public body hss not approved the lkiugaaddetexmhedtheprevsilingwagerateinadvancc.

Weconcl*inreqensetoyourtbirdspec&questioqthstaca&acto rmust,notwv,fw asixty-dollerpenaltyifthecontractorhasviolatpdsection2258.W. Seetion2258.023@)desaiba “Acor&actor...whoviolatestbisse&on tJqaaltyasamandatory,notanoptional,pu&mta& shallpay... S60forcachworkacmployedfoteachcalendardayorpartofthedaythatthcworker ispsid&ssthsnthewsgerstesstipulstedintheeo~” l’besixtydoIlar@tysection2258.023 pmaibes does not apply to violations of otha sections of cbapta 2258, however?’

Siiy, we conclude thst a conkactor who violates section 2258.023 must pay the sixty- dollarpa&yeveniftheuadapaidwodcersgrecdtoacccptawsgeratebelowthelisted,pmvaikg wsgerate. Section2258.@23(a)rquimsthe -topaynolcssthauthelistad,prcvailingwsge rata. Monovcr,chapta~8~~~prcvailingwagcrate~~asa~s

eat&me& @tion 2258.021, as am& by the legislature in 1997,= i,s titled “Right to be Paid RevliIiogW~~~andmarsdatcsthataworkaemployadonapublicwodrYs~&~ nolessthantheprewGgwagerate. Chspter2258exa1~the contradrlimupayingthe predingwsgerateonIyiutwocirarmstances: iir&iftheworkislimitedtomahnam+or ~ifthcpublicbodyfailcdtolistinthtoontractthtprcvailingwagerates.~

msxI#atcxt acoonrpaaying uotcs 27.28 @i.sam& chqier 2258’s primsly pmposc). =%a Gov’t Code 5 2258.023(b).

=Sa Aot of May 8.1997.75th Lq., Rs., ch. 165.0 18.01,1997 Tex. Seog Law Sav. 327.486.

TheHonorableRan5O;Olive& - Page 7 (DK-469)

Fnally.inrespcwsttorourlastclucstionwe~thataworka~bclicvcshearshe hasbeeaunderpaid,but~thcpublicbodyhasdetczminedwasnotundapaid~chapta 225&~submittheissuetobiiarbitmtionunlesstheworhandtheconhcbx cansettlethe issw C&qta2258setsupaxmewhat conhing&munentmachanism,though,andwefcelit maitsexplsnation To&ate cxdbaa&suaggti~workamust6leacomplaintwith~e publiebodyfhatawardedthecontmt.m Thepublicbodymustmakean%itialdetamh&on”as towhethaithssgoodcausetobelievethatrhecontractor hssinfactvIolatedchapta2258.m Ifthe

=+-i-Q Ie&sl$my~awt iotond tk bill to include the rejected ptodshn S~~~ANORMANJ.SINGIB.S~A~AND

~s~wcno~Q48.18(5thed.1992). Ontheotkhmd,itmayhdicatethatthelqis~foltthe

-wssmdmulwt ufoomdhiDgllradybltbohertatutc said. Itm!dyolmsoggestelat0lc-suffd tiumapmadmaIirrcgularity.

%?esouthsnPr&on ch. v.Re?Jmk, 110s.w.2d606,609(-rex.c!iv.App.-Amarill0 1937,writdism%); TerasIi&hnuy Gmm’n v. ElPcuo Bldg. & Chn?. Cb., 234 S.W.2d 857,860-61 (Tez 1941) (quoting witi qqmval ihUhmprironcO, 110S.W2da0%-09)$h@v. YoMgBmr..Iw,835 S.W2d22l,WCraApp,Wux,cx.~.-Waco 1992, Corm?. Co.. 570 S.WZd 161,164 (Tex. Civ. App.-Tcxarkma 1978, tit voitdalcd); Culfipherv. W,?aihe&M refdn.r.c~ AttomcyGaaal0piipinionFJM-48 (1986) at4-5, M-329 (1985) at2-3. CIiqtex2258 - a sccahy lturpozto~biiwdc mpublicwodfspmjcds~ttscyarc~0paywoIkaswhatulcpublic bodyhasdctanrincdistbcprevailinwagcwagCinthcthc SasOurhmrprironcO.,110S.W~at609.TocollJtruc ch+d258topemtaa- toavoidlbcpnwdungwage~byulsking”mwlp~to~forlcss ‘hao the prcwdl& wage rate. would abro8ate the need for mcb notificatior~

=See Act of Mar. 21.1933.43d Leg., RS.. ch 45,$7,1933 Tcx. GUI. Laws 91.93-94. %ee Oov’t Code $0 2258.051, .052.

“‘See ids WS.OSz(a), (b),

The Honorable Rent 0. Oliveira - Page 8 (Dn-469)

itmust~ldpaymentsduethccontrador,aeditmayusethatmomytoreimbursetheworka:” If the public body has not withheld enough from the contractor to fully reimburse the workcx, the worker may sue the contractor and the contmcMssuretyfbrthe rcambdq money he or she is owed.= In addition, se&on 2258.053(a) pmides that a co&actor and aggrieved worka must submit to an arbihator auy unresolved issues mlating to an alleged underpayment unless the worker snd the contractor settle the issue in a timely msnnczs

In our opinion, chspta 2258 permits a worker to seek a judicial remedy only in one circumstance: whae the public body, having reoeived the worka’s complaint snd adjudging the allegations substsntiated, withholds an insutlicicnt amount of money to mslce the underpaid worker whole. Inanyotbasituatio~webeliev~ansgg7idworkaandthe contm&ormusttxytosettle or submit to binding arbitration. We believe this constn&on is collFistent with the Iegi&tive histoty of the arbitration provision which was added in 1993.% The arbitration provision was not inthe19!I3billasitwssin&&cod Rathqthebillss&oducedpmvidedthatacontradaror ~~iSBggricVedbya”public~sdtcisionona~~’Escatitltdtojudidalrcvicw bytrialdenovoinacomtofumgeta&j TbeSenatocommittbconIntergovernmartal RclatioIlsdeleladthctdal&Mwoprovisionbut~~fhatumesolwdissaesshouldbc~~ tobiiarbitration.~ SenatorBarriento%cxplainingtheSaMecommitteesubstitutG indicated thatunderthermbstitute~t]heo~mattathatcanbcappcaladtothe~~isifthccityhas~t retahedenoughmoneytithepaymwtstothe conlmc&tosatis@theawsrdofthearbitrator.~

Wecaonotadviseyouastowhatremadicsanavailabetothcalltgedly~~~pvorkcrs “See id $9 2258.052(d), .056(a).

‘Se id. 5 2258.056(a), (5).

“See id. Q$WS.O23(a), .053(a). ‘lb v/o&a sod tbc -mustscttlcm-lvcdissuetidlin15da~ of the public body’s initial detumina6on or admit the issue to bimding atlaikation. See id. 5 2258.053(a).

yseCAct of May 29,1993,73d Leg., RS, ch. 606, sec. 1.0 z(d), (e), 1993 Tax. Gm. JAWS 2300,230O-Ol. wee scoatc comm on IutcrgovcImwn tal RolaIioos, Bii Analysis, C.S.H.B. 560.73d Leg., RS. (1993). YHcarings on ILB. 560 Before. the senate c4mlm. on Intagov- Rclatio~~~, 73d Leg., RS. (May 19, 1993) (statcmcllt of Senator Barrienti) (tape available hm senate staff Scrviccs).

p. 2653

‘IheHonorableRen~O. Oliveim - Page 9 W-469)

SUMMARY Assuming that tbe Bolin Science Hsll remodeling project is subject to Govanma&CodechaptczZ258, MidwestemStateUniveasitymustrequire the contractor and subumtractom to pay no less than the local, prevailing wage rate to electricians working on the project unless tbe work is limited to maintenance.

Government C&e chapta 2258 does not as a matter of law prohibit a contractor from paying one worka two ditkent wage rates.

So long ss a public body hss in place a system whereby, prior to the ~itmricwsa~ntractorsrequesttohircacraftortypeofworkanot speeifiedinthecmtractsnddetaminesthel~~wageratc,we do not believe a contra&r who complies with that system violates Govanm~tCodechspta2258. Acontractormaynot, howeva,hkeacmft or type of worka that tbe public body has not approved and detexmined the preva&gwagerateinadvsnw.

AcoWactorwhopayswodcemlcssthanthepnklingwageratesetout inthecontract~notmay,payasixty-dollarpcnaltytothepublicbody. Itisnotadefensethatthcrmderpaidworkeragreedtoacccptawagerate below the listed, prevs%ng wage rate.

Chapter2258pcrmitsaworkatoseekajudicialnmadyonlyinone circumstance: whae the public body, having tived the work&s complaint and adjudging tbe allegations substantiated, withholds an insdicient smount of money to mske the undexpaid worka whole. In any othasituation,chapta2258 quirks anaggrievedworkeraudtbeco&actor to try to settle the issue or submit to binding arbitration.

DAN MORALES Attorney General of Texas JORGE VEGA

First Assistant Attorney Genersl

SARAH J. SHIRLEY

Chair, Opinion Gxnmittee

Prepsred by Kymberly K Oltrogge

Assistaut Attorney General

D. 2654