Busker v. Wabtec

CourtCalifornia Supreme Court
DecidedAugust 16, 2021
DocketS251135
StatusPublished

This text of Busker v. Wabtec (Busker v. Wabtec) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Busker v. Wabtec, (Cal. 2021).

Opinion

IN THE SUPREME COURT OF CALIFORNIA

JOHN BUSKER, Plaintiff and Appellant, v. WABTEC CORPORATION et al., Defendants and Respondents.

S251135

Ninth Circuit 17-55165

Northern District of California 2:15-cv-08194-ODW-AFM

August 16, 2021

Justice Corrigan authored the opinion of the Court, in which Chief Justice Cantil-Sakauye and Justices Kruger, Groban, and Jenkins concurred. Justice Liu filed a dissenting opinion, in which Justice Cuéllar concurred. Justice Cuéllar filed a dissenting opinion, in which Justice Liu concurred. BUSKER v. WABTEC CORPORATION S251135

Opinion of the Court by Corrigan, J.

California’s prevailing wage law (Lab. Code, 1 § 1720 et seq.) is a minimum wage provision that generally applies to those employed on “public works.” This case involves two questions: (1) Does publicly funded work on rolling stock, like train cars, fall under the statutory definition of “public works”? (2) Alternatively, does the work on rolling stock in this case qualify as “public work” because it is integral to other activity that itself qualifies as public work? The answer to both questions is no. I. BACKGROUND The Southern California Regional Rail Authority operates a large train system known as Metrolink. In 2010, it entered into the prime contract with Parsons Transportation Group, Inc. (Parsons) to design, furnish, and install a comprehensive communications network called Positive Train Control (PTC) to prevent collisions and other dangerous train movement. The project was publicly funded and cost over $216 million. The expansive undertaking included wayside signals, systems on locomotives and rail cars, back office servers, a communications network, and a centralized dispatching system, along with software development and installation. The system required integration of various components located on trains, at

1 Further unspecified section references are to the Labor Code.

1 BUSKER v. WABTEC CORPORATION Opinion of the Court by Corrigan, J.

wayside sites along tracks, and at centralized control centers. While the undertaking was done under a public contract, not all aspects of the enterprise necessarily qualify as a public work. “Public works” is a term of art defined by statute.2 (See § 1720 et seq.) Only two aspects of the project are at issue here: field work and onboard work.3 Field work included building and outfitting radio towers on land adjacent to train tracks. The labor required trenching, driving forklifts, operating cranes, and welding. Onboard work primarily involved installing electronic components on the train cars and locomotives themselves. Defendant Wabtec Corporation (Wabtec) subcontracted to install system components on locomotives and rail cars. The subcontract incorporated various provisions of the prime contract, including compliance with applicable prevailing wage laws. Wabtec performed no field work. Plaintiff John Busker was one of over 100 Wabtec workers assigned to the project. For approximately two years, he did traditional electrical onboard installation. Wabtec did not pay prevailing wages to any of its employees. Busker filed a prevailing wage complaint against Wabtec with the Division of Labor Standards Enforcement (DLSE), a division of the Department of Industrial Relations (Department)

2 The prevailing wage law uses the plural term “public works” as well as the singular term “public work.” (See §§ 1720, subd. (a)(1) & (2), 1770, 1771, 1772.) This opinion uses the terms interchangeably. 3 Field work is referred to as “field installation work” in the contract. This opinion uses the abbreviated term to avoid unnecessary repetition.

2 BUSKER v. WABTEC CORPORATION Opinion of the Court by Corrigan, J.

that enforces California’s labor laws. (See Alvarado v. Dart Container Corp. of California (2018) 4 Cal.5th 542, 555.) In 2015, the DLSE issued a civil wage and penalty assessment of $6,468,564 against Wabtec for failure to pay prevailing wages.4 Wabtec requested review by the Labor Commissioner, arguing that the prevailing wage law does not apply to the onboard work because the law covers only work performed on or to real property, not “rolling stock”5 like locomotives and buses. After review, the DLSE vacated the assessment and took no further action. In this case, a DLSE officer testified his superior directed him to vacate the assessment because, historically, work performed on rolling stock is not covered by the prevailing wage law. The Department never formally determined whether the prevailing wage law covers onboard work. While the review of the assessment was pending, Busker sued Wabtec and the project manager 6 in state court for failing

4 The assessment consisted of $5,786,349 in wages due plus related penalties of $682,215. The assessment order did not contain any factual or legal basis for the DLSE’s finding, aside from spreadsheets containing the wage and penalty calculations. 5 The prevailing wage law does not mention “rolling stock.” Black’s Law Dictionary defines the term as “[m]ovable property, such as locomotives and rail cars, owned by a railroad.” (Black’s Law Dict. (11th ed. 2019) p. 1592, col. 1.) In the federal “Buy America” regulations, rolling stock has a much broader definition that includes “buses, vans, cars, railcars, locomotives, trolley cars and buses, and ferry boats, as well as vehicles used for support services.” (49 C.F.R. § 661.3 (2021).) This opinion uses the term broadly to encompass all types of conveyances. 6 We refer to the defendants collectively as Wabtec.

3 BUSKER v. WABTEC CORPORATION Opinion of the Court by Corrigan, J.

to pay prevailing wages. Wabtec removed the action to federal district court and sought summary judgment urging Wabtec’s onboard work was not subject to prevailing wage requirements. The court granted the motion, reasoning that only workers “employed on [a] project involving fixed works or realty” are entitled to prevailing wages. It also rejected Busker’s other argument that the onboard work fell within the scope of the prevailing wage law under section 1772 as work done “in the execution” of the overall project to install the PTC system. The court concluded that section 1772 still requires the applicable contract to be one for “public work,” and the Wabtec subcontract, limited to rolling stock, did not qualify. Busker appealed and we accepted a request from the United States Court of Appeals for the Ninth Circuit to decide a question of state law. (Cal. Rules of Court, rule 8.548(a).) That court posed the question as follows: “Whether work installing electrical equipment on locomotives and rail cars (i.e., the ‘on- board work’ for Metrolink’s PTC project) falls within the definition of ‘public works’ under California Labor Code § 1720(a)(1) either (a) as constituting ‘construction’ or ‘installation’ under the statute or (b) as being integral to other work performed for the PTC project on the wayside (i.e., the ‘field installation work’).” II. DISCUSSION A. Overview of California’s Prevailing Wage Law Economic conditions in the Great Depression prompted the passage of prevailing wage laws designed to ensure that workers employed on public building programs would be paid daily wages commensurate with those prevailing in the local area for work of a similar character. (See Universities Research

4 BUSKER v. WABTEC CORPORATION Opinion of the Court by Corrigan, J.

Assn. v. Coutu (1981) 450 U.S. 754, 773–774; Azusa Land Partners v.

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Busker v. Wabtec, Counsel Stack Legal Research, https://law.counselstack.com/opinion/busker-v-wabtec-cal-2021.