Charles v. Roads Corp.

11 Mass. L. Rptr. 52
CourtMassachusetts Superior Court
DecidedSeptember 29, 1999
DocketNo. 9801380
StatusPublished
Cited by1 cases

This text of 11 Mass. L. Rptr. 52 (Charles v. Roads Corp.) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Charles v. Roads Corp., 11 Mass. L. Rptr. 52 (Mass. Ct. App. 1999).

Opinion

Gants, J.

The plaintiffs, Robert Charles, Jeffrey Hicks, Walter Lane, Norman Scafidi, and Thomas Sheahan, on behalf of themselves and all others similarly situated (the “Plaintiffs”), have brought this action against three corporations for whom they were employed, along with each of these corporation’s presidents and treasurers: Roads Corporation, John F. Sarao, Jr. and Richard A. DeFelice (“Roads”); LMX Ltd., John F. Sarao, Jr. and Richard A. DeFelice (“LMX”); and Roads Paving, Inc., John Keating and Alan Monaghan (“RPI”). They allege, on a number of grounds, that the defendants have shortchanged them on the wages and benefits they were due as employees of the defendants on public works construction projects.

Plaintiffs have moved for partial summary judgment on Counts I, III, IV, V, XI, XIII, XIV and XV of the complaint. The Roads defendants have filed a cross-motion for partial summary judgment as to Counts I, III, IV, and V. The RPI defendants have filed a cross-motion for partial summary judgment as to Counts XI, XIII, XIV and XV of plaintiffs’ complaint. These counts allege that Roads and RPI:

- violated the prevailing wage law, G.L.c. 149, §27, by failing to pay the benefits portion of the prevail[53]*53ing wage rate for each overtime hour worked (Counts I and XI);
- violated the prevailing wage law, G.L.c. 149, §27, by deducting an amount from the wage rate paid for holiday pay for each hour worked (Counts III and XIII);
- violated the weekly payment of wage law, G.L.c. 149, §148, by failing to pay weekly or bi-weekly wages when they did not pay the full amount of the prevailing wage rate due for each hour worked (Counts IV and XIV); and
- violated the overtime law, G.L.c. 151, §1A, by failing to pay wages at the rate of one and one half times the prevailing wage rate for each overtime hour worked (Counts V and XV).1

For the reasons stated below, plaintiffs’ motion for partial summary judgment is DENIED and defendants’ cross-motions for partial summary judgment are ALLOWED.

BACKGROUND

Roads and RPI are non-union construction companies that paid their employees a cash wage and a separate benefits contribution for each hour worked. The benefits contribution may be applied by the employee toward health and disability insurance, a retirement plan, a supplemental unemployment benefits plan, and paid holidays.

Both Roads and RPI were contractors on public works projects for the Commonwealth of Massachusetts, and were required on these jobs to pay the prevailing wage rate as determined by the Commissioner of the Department of Labor and Workforce Development (“Commissioner”). G.L.c. 149, §§27 and 27. The prevailing wage rate includes both hourly cash wages and payments by employers to health and welfare plans, pension plans, and supplementary unemployment benefit plans. Id. There is no dispute that the total hourly cash wages and benefits paid by Roads and RPI to the plaintiffs for the first forty hours per week they worked met or exceeded the prevailing wage rate set by the Commissioner. For each hour worked beyond forty hours, Roads and RPI paid their employees “time and a half’ (150 percent) of the normal hourly cash wage only; they did not pay any benefits for overtime work. Nevertheless, the total of the normal hourly cash wage plus the 50 percent overtime premium exceeded the prevailing wage rate. Plaintiffs claim that defendants violated the prevailing wage law by not paying a benefits contribution during overtime hours; they contend that the prevailing wage law compels the defendants to pay them 150 percent of their hourly cash wage plus their benefits for all overtime hours.

As a Massachusetts employer, both Roads and RPI were obligated under G.L.c. 151, §1A to pay its employees “at a rate not less than one and one half times the regular rate” for hours in excess of forty during the work week. G.L.c. 151, §1A. The plaintiffs claim that Roads and RPI violated this overtime law by only paying time and a half on the non-benefit portion of the wage rate for overtime hours.2

Finally, plaintiffs claim that defendants wrongfully included an amount designated for holiday pay as a part of the benefit component of the prevailing wage rate.

Upon becoming aware of plaintiffs’ allegations against them, Roads and RPI conducted “self audits” of their benefits plans and decided in January 1998 to credit persons who worked more than forty hours per week on the site of public works projects during 1995, 1996, and 1997 with the applicable weekly benefit for their job classification. This money was deposited into the pension fund and each person was credited with compound interest based upon the fund’s performance in 1995, 1996, and 1997. OnFebruary6, 1998, Roads and RPI contacted plaintiffs Charles, Hicks, Lane, Scafidi and Sheahan and informed them that their pension accounts had been credited. Defendants claim that these actions go above and beyond the requirements of state law and are consistent with the federal Davis-Bacon Act, 40 USC §276a, et seq. As such, defendants argue that plaintiffs’ claims, even if valid, are now moot.

DISCUSSION

To prevail on summary judgment, the moving party must establish that there is no genuine issue of material fact on every element of a claim and that it is entitled to judgment on that claim as a matter of law. See generally, Mass.R.Civ.P. 56(c); Highlands Insurance Co., v. Aerovox, Inc., 424 Mass. 226, 232 (1997). Where, as here, the party opposing summary judgment has the burden of proof at trial, the moving party is entitled to summary judgment if it “demonstrates, by reference to material described in Mass.R.Civ.P. 56(c), unmet by countervailing materials, that the party opposing the motion has no reasonable expectation of proving an essential element of that party’s case.” Kourouvacilis v. General Motors Corp., 410 Mass. 706, 716 (1991). “To be successful, a moving party need not submit affirmative evidence to negate one or more elements of the other party’s claim.” Id. It is sufficient to demonstrate that “proof of that element is unlikely to be forthcoming at trial.” Flesner v. Technical Communications Corp., 410 Mass. 805, 809 (1991).

Prevailing Wage Law

The Massachusetts prevailing wage law, G.L.c. 149, §26 provides in relevant part:

The rate per hour of the wages paid to said mechanics and apprentices, teamsters, chauffeurs and laborers in the construction of public works shall not be less than the rate or rates of wages to be determined by the commissioner as hereinafter provided; . . . Payments by employers to health and [54]*54welfare plans, pension plans and supplementary unemployment benefit plans under collective bargaining agreements or understandings between organized labor and employers shall be included for the purpose of establishing minimum wage rates as herein provided.

This provision establishes a minimum wage to be paid by contractors on state public works projects. In contrast with its federal counterpart, the Davis-Bacon Act, 40 U.S.C. §276a, it does not provide for an overtime premium or incorporate by reference the overtime provisions of G.L.c. 151, §1A or any other statute. Compare G.L.c. 149, §26 with 40 U.S.C.

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Bluebook (online)
11 Mass. L. Rptr. 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charles-v-roads-corp-masssuperct-1999.