California Slurry Seal Ass'n v. Department of Industrial Relations

121 Cal. Rptr. 2d 38, 98 Cal. App. 4th 651, 2002 Cal. Daily Op. Serv. 4425, 2002 Daily Journal DAR 5617, 2002 Cal. App. LEXIS 4132
CourtCalifornia Court of Appeal
DecidedMay 21, 2002
DocketG027691
StatusPublished
Cited by3 cases

This text of 121 Cal. Rptr. 2d 38 (California Slurry Seal Ass'n v. Department of Industrial Relations) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
California Slurry Seal Ass'n v. Department of Industrial Relations, 121 Cal. Rptr. 2d 38, 98 Cal. App. 4th 651, 2002 Cal. Daily Op. Serv. 4425, 2002 Daily Journal DAR 5617, 2002 Cal. App. LEXIS 4132 (Cal. Ct. App. 2002).

Opinion

Opinion

MOORE, J.

At the request of a labor organization, the Department of Industrial Relations (the Department) evaluated whether to rescind a 10-year-old prevailing wage determination for slurry seal workers. The Department rescinded the determination upon concluding it no longer represented the prevailing wage. When the Department did so, another preexisting prevailing wage determination, based on a collective bargaining agreement and previously applicable to only a small segment of the industry, became the prevailing wage determination applicable to all Southern California slurry seal workers.

An association of slurry seal contractors filed a petition for a writ of mandate to challenge the rescission. It claimed the Department abused its discretion in rescinding one prevailing wage determination when the net effect was to supplant it with a second prevailing wage determination which did not in fact represent the prevailing wage. The trial court denied the writ *655 petition, holding the Department had not abused its discretion and the association had failed to exhaust its administrative remedies.

The association appeals, reiterating that the Department abused its discretion, and contending the trial court erred in concluding otherwise and in determining the association had failed to exhaust its administrative remedies. Because we agree the Department did not abuse its discretion in rescinding the first prevailing wage determination, we affirm.

I

Facts

In 1989, the Department issued General Prevailing Wage Determination No. SC-830-X-70-89-1 (the Slurry Seal Workers’ Determination) establishing wage rates for various categories of slurry seal workers. The wage rates ranged from $7.99 to $15.15 for workers in Orange, Riverside and San Bernardino Counties.

Subsequently, the Southern California District Council of Laborers and Laborers’ International Union of North America, Highway & Street Stripers, Local 1184, AFL-CIO (the Laborers) requested a wage determination for slurry seal workers based upon the Laborers’ collective bargaining agreement. In 1995, the Department granted the request and added slurry seal work into the wage determination affecting the Laborers, then designated as No. SC-23-102-2-96-1 (the Laborers’ Determination), 1 at the rate set forth in the Laborers’ collective bargaining agreement. Since that time, the Department has published two distinct wage determinations for slurry seal work— the Slurry Seal Workers’ Determination and the Laborers’ Determination. According to the California Slurry Seal Association (the Association), the Department has periodically increased the slurry seal wage rate in the Laborers’ Determination to correspond with increases set forth in the Laborers’ collective bargaining agreement. As of 1999, the slurry seal wage rate under the Laborers’ Determination was $18.18.

By letter dated March 5, 1999, the Laborers requested the Department to rescind the Slurry Seal Workers’ Determination. The Laborers asserted that *656 the underpinnings of the 10-year-old determination no longer supported it for numerous reasons and the wage rates contained therein were no longer the prevailing rates. Shortly thereafter, the Association, claiming its contractor members performed nearly 98 percent of all California slurry seal work and employed approximately 95 percent of all California slurry seal workers, sent a letter to the Department, requesting it to conduct a wage survey before taking action on the Laborers’ request.

The Department set a hearing on the matter. The Association then sent the Department another letter, in which it reiterated its request for a wage survey and indicated there was a need for review of not only the Slurry Seal Workers’ Determination, but the Laborers’ Determination as well. The Association subsequently sent further correspondence to the Department in which it more clearly articulated a request for the Department to review both of the determinations. The Department chose to limit the scope of the hearing to a review of the Slurry Seal Workers’ Determination.

The hearing took place in December 1999. The Association and the Laborers each submitted evidence. The Association characterizes its evidence as “showing that its members were not paying the rate of $18.18 set forth in the Laborers’ . . . Determination.”

In February 2000, the Department issued a 20-page memorandum of decision pursuant to which it rescinded the Slurry Seal Workers’ Determination because the wage rates set forth therein were not actually prevailing rates. In the memorandum of decision, the Department stated that upon rescission of the Slurry Seal Workers’ Determination, slurry seal work would have to be paid in accordance with the Laborers’ Determination, which remained in effect. In response to the Association’s argument that the Laborers’ Determination did not represent prevailing wage either, the Department made several comments. Among other things, it stated that the accuracy of the Laborers’ Determination was not the subject of the proceedings then before it, the Laborers’ Determination was properly supported by a current collective bargaining agreement and a predetermined federal rate, and Labor Code section 1773 required the Department to fix a rate not less than the prevailing rate (implying a higher rate was permissible).

The Association then filed an application for an order to show cause re preliminary injunction and a petition for a writ of mandate to challenge the action of the Department and its director, Stephen J. Smith, in rescinding the Slurry Seal Workers’ Determination, with the effect of making the Laborers’ Determination apply to the entire Southern California slurry seal industry. *657 The Laborers filed a motion for leave to intervene, which was granted. The trial court denied both the application for a preliminary injunction and the writ petition. It found that the Department had not abused its discretion in rescinding the Slurry Seal Workers’ Determination and that the Association had failed to exhaust its administrative remedies. The Association filed a notice of appeal from the judgment and related orders and rulings.

II

Discussion

A. Exhaustion of Administrative Remedies

1. Background

In its opposition to the Association’s petition for a writ of mandate, the Department said the Association sought to “attack the accuracy” of the Laborers’ Determination, but had failed to exhaust its administrative remedies. It stated that the statutory scheme has provided only one method for launching the attack—the filing of a petition pursuant to Labor Code section 1773.4, and the Association had filed no such petition. In ruling on the petition, the trial court found the Association had failed to exhaust its administrative remedies.

The Association appears to interpret this finding as meaning that the trial court was precluded from reaching the merits of any portion of the petition, not just any argument that might be construed as a direct challenge to the Laborers’ Determination. The Department does not view it this way.

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121 Cal. Rptr. 2d 38, 98 Cal. App. 4th 651, 2002 Cal. Daily Op. Serv. 4425, 2002 Daily Journal DAR 5617, 2002 Cal. App. LEXIS 4132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/california-slurry-seal-assn-v-department-of-industrial-relations-calctapp-2002.