Associated Builders & Contractors, Inc. v. Herman

976 F. Supp. 1, 1997 U.S. Dist. LEXIS 11991, 1997 WL 525268
CourtDistrict Court, District of Columbia
DecidedJuly 23, 1997
DocketCiv. A. 96-1490(SS)
StatusPublished
Cited by2 cases

This text of 976 F. Supp. 1 (Associated Builders & Contractors, Inc. v. Herman) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Associated Builders & Contractors, Inc. v. Herman, 976 F. Supp. 1, 1997 U.S. Dist. LEXIS 11991, 1997 WL 525268 (D.D.C. 1997).

Opinion

MEMORANDUM OPINION

SPORKIN, District Judge.

I.

Introduction

On April 3, 1997, the above-captioned case was reassigned from the late Honorable Charles R. Richey to the undersigned member of this Court. Before the Court are the parties’ cross-motions for summary judgment.

The plaintiffs ask the Court to direct the defendants 1 to re-implement and enforce revised regulations relating to the use of employees known as “helpers” on federal construction projects covered by the Davis-Bacon Act. The defendants suspended the revised helper regulations in November 1993 and reinstated the former helper regulations, because a congressional rider in an appropriations bill precluded the expenditure of any funds to implement the revised regulations; that rider, which was incorporated into subsequent appropriations measures, expired on April 26, 1996. The plaintiffs allege that the defendants’ failure to implement the revised helper regulations since April 26, 1996 violates the Administrative Procedure Act and the Davis-Bacon Act. The plaintiffs further allege violations of the Unfunded Mandates Act and the Regulatory Flexibility Act. In addition to seeking injunctive relief, the plaintiffs ask the Court to declare that the revised helper regulations, as they existed prior to their suspension in November 1993, are now in effect and must be enforced. For the reasons discussed below, the defendants are entitled to judgment as a matter of law.

II.

Statutory and Regulatory Background

The Davis-Bacon Act, 40 U.S.C. § 276a, ensures that workers on federal construction projects are paid no less than prevailing wage rates in the locality of such projects. See Building & Constr. Trades Dep’t, AFL-CIO v. Martin, 961 F.2d 269, 271 (D.C.Cir.1992). Under the Act, the advertised specifications for each federal construction project in excess of $2,000 must contain minimum wage provisions for each class of laborer and mechanic based upon prevailing wages in the locality of performance as determined by the Secretary of Labor. Id.

Pursuant to the Davis-Bacon Act, the Department of Labor (“the Department”) has promulgated regulations governing a class of employees known as “helpers” working on federal construction projects. Prior to 1982, the Secretary’s long-standing practice was to recognize a helper classification only if: (1) it “was a separate and distinct class of worker that prevailed in the area,” and (2) the proposed helper classification “perform[ed] duties that could be differentiated from the duties of journeylevel workers in the classification, as well as other classifications on the wage determination.” 58 Fed.Reg. 58954.

On May 28, 1982, the Department promulgated changes to the helper regulations *4 which “represented a reversal of a longstanding Department of Labor practice by allowing some overlap between the duties of helpers, and journeyman and laborers.” On January 27, 1989, after having been enjoined by the Honorable Harold Greene of this Court and partially struck down by the D.C. Circuit, the final, revised helper regulations were published in the Federal Register. 54 Fed.Reg. 4234 (Jan. 27, 1989). In 1990, the Department published a Federal Register notice implementing the revised helper regulations effective February 4, 1991. 55 Fed. Reg. 50148 (Dec. 4,1990).

In April 1991, only two months after the revised regulations became effective, President Bush signed into law an appropriations measure that prohibited the Department from spending any funds to implement or administer the revised helper regulations. The Department complied with this measure and did not implement or administer the revised regulations for the remainder of fiscal year 1991.

After fiscal year 1991, a new appropriations act was passed which did not include a ban on the implementation of the revised helper regulations. The Department thereafter instructed all contracting agencies to include helper contract clauses in contracts covered by the Davis-Bacon Act. On June 26, 1992, after the D.C. Circuit had invalidated as arbitrary a portion of the revised helper regulations providing a 2:3 cap on the ratio of helpers to journeyman (see Building & Constr. Trades Dep’t, AFL-CIO v. Martin, 961 F.2d 269, 277 (D.C.Cir.1992)), the Department issued a notice in the Federal Register, bringing the revised helper regulations into compliance with this decision. 57 Fed. Reg. 28776. The revised helper regulations were enforced from June 26, 1992 until November 5,1993.

On October 21, 1993, Congress enacted another appropriations measure which, once again, prohibited the Department from expending funds to implement or administer the revised helper regulations. See Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1994, Pub.L. No. 103-112, § 103 (Oct. 21, 1993). In response, on November 5,1993, the Department published a Federal Register notice suspending the revised helper regulations and re-instituting the Department’s longstanding regulations governing the use of helpers. 58 Fed.Reg. 58954 This notice stated, in relevant part:

[T]he regulations presently codified at 29 CFR 1.7(d), 5.2(n)(4), and 5.5(a)(1)(h) [the revised helper regulations] are suspended until the Department of Labor publishes notice in the Federal Register that prohibition on implementation of the regulations has been lifted.

Id. Invoking section 553(b)(3)(B) of the APA, the notice further stated that there was “good cause for dispensing with notice and public comment concerning the suspension” of the revised helper regulations, due to the prohibition contained in the appropriations measure. Id. at 58955. The suspension of the revised helper regulations affected all contracts awarded on or after October 21, 1993.

The 1995 Department of Labor Appropriations Act also barred the Department from expending funds to implement the helper regulations; this prohibition extended into fiscal year 1996 through several continuing resolutions.

As the Department recognized in its Federal Register notice of August 2, 1996, the Department’s fiscal year 1996 appropriations contains no prohibition on the expenditure of the funds to carry out and enforce the revised helper regulations:

There is no such prohibition in the Department of Labor’s Appropriations Act for fiscal year 1996, Public Law 104-134, signed into law by President Clinton on April 26,1996

61 Fed.Reg. 40366, 40367.

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976 F. Supp. 1, 1997 U.S. Dist. LEXIS 11991, 1997 WL 525268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-builders-contractors-inc-v-herman-dcd-1997.