City of El Centro v. Lanier

245 Cal. App. 4th 1494, 26 Wage & Hour Cas.2d (BNA) 429, 200 Cal. Rptr. 3d 376, 2016 Cal. App. LEXIS 240
CourtCalifornia Court of Appeal
DecidedMarch 29, 2016
DocketD066755
StatusPublished
Cited by3 cases

This text of 245 Cal. App. 4th 1494 (City of El Centro v. Lanier) 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
City of El Centro v. Lanier, 245 Cal. App. 4th 1494, 26 Wage & Hour Cas.2d (BNA) 429, 200 Cal. Rptr. 3d 376, 2016 Cal. App. LEXIS 240 (Cal. Ct. App. 2016).

Opinions

Opinion

McINTYRE, J.

In 2013, the Legislature adopted Labor Code section 1782, which prohibits a charter city from receiving or using state funding or financial assistance for a public construction project if the city has a charter provision or ordinance that authorizes a contractor to not comply with the state prevailing wage laws. (Lab. Code, § 1782, subd. (a), added by Stats. 2013, ch. 794, § 2.) (Undesignated statutory references are to the Labor Code.) In this case, we affirm a judgment upholding the constitutionality of section 1782 against a “home rule” challenge brought by a number of charter cities.

FACTUAL AND PROCEDURAL BACKGROUND

Five charter cities, the Cities of El Centro, Fresno, Vista, Carlsbad and El Cajon (the Cities), filed a petition for an alternative or peremptory writ of mandate and complaint for declaratory and injunctive relief against defendants the State of California, David Lanier in his official capacity as the Secretary of the Labor and Workforce Development Agency, Christine Baker in her official capacity as the Director of Industrial Relations and Julie A. Su in her official capacity as the Labor Commissioner. (The City of Oceanside was also a plaintiff, but is not a party to this appeal.) The trial court subsequently allowed the State Building & Construction Trades Council of California (Trades Council) to intervene in the action. (Defendants and Trades Council are collectively referred to as respondents.) We granted the applications of League of California Cities (League), California State Association of Counties (Counties) and Associated Builders & Contractors of California to file amicus curiae briefs on behalf of the Cities. We also granted the application of the California State Legislature to file an amicus curiae brief on behalf of respondents.

Among other things, the Cities sought a writ of mandate to prevent the enforcement of section 1782. The trial court denied relief and entered a judgment in favor of defendants. The Cities timely appealed and filed a petition for a writ of supersedeas to prevent section 1782 from going into [1501]*1501effect. We denied the petition. On appeal, the Cities limit their challenge to the extent the trial court denied relief under article XI, section 5, subdivision (a) and article XIII, section 24, subdivision (b) of the California Constitution.

DISCUSSION

I. Background

Since 1931, California has had some form of a prevailing wage law. (State Building & Construction Trades Council of California v. City of Vista (2012) 54 Cal.4th 547, 554 [143 Cal.Rptr.3d 529, 279 P.3d 1022] (Vista).) The current prevailing wage law requires that contractors on public works projects pay their employees the general prevailing rate of per diem wages. (§§ 1770, 1773.) Contractors must also hire apprentices enrolled in state-approved apprenticeship programs to perform at least a certain percentage of the work and make monetary contributions for apprenticeship training. (§ 1777.5, subds. (c), (g) & (m)(l).) The purpose of the prevailing wage law “is to benefit and protect employees on public works projects,” including “to protect employees from substandard wages that might be paid if contractors could recruit labor from distant cheap-labor areas; to permit union contractors to compete with nonunion contractors; to benefit the public through the superior efficiency of well-paid employees; and to compensate nonpublic employees with higher wages for the absence of job security and employment benefits enjoyed by public employees.” (Lusardi Construction Co. v. Aubry (1992) 1 Cal.4th 976, 987 [4 Cal.Rptr.2d 837, 824 P.2d 643].)

The California Constitution, however, provides that the ordinances of charter cities supersede state law with respect to “municipal affairs.” (Cal. Const., art. XI, § 5, subd. (a).) “[T]his constitutional ‘home rule’ doctrine reserves to charter cities the right to adopt and enforce ordinances that conflict with general state laws, provided the subject of the regulation is a ‘municipal affair’ rather than one of ‘statewide concern.’ ” (Traders Sports, Inc. v. City of San Leandro (2001) 93 Cal.App.4th 37, 45 [112 Cal.Rptr.2d 677].)

The majority in Vista concluded that wage levels of contract workers constructing locally funded public works are a municipal affair. (Vista, supra, 54 Cal.4th at p. 558.) At issue in Vista was a state law that required a charter city to comply with California’s prevailing wage laws and a charter city ordinance prohibiting compliance with that law. (Id. at pp. 560-561.) An actual conflict existed because state law required what the charter city law prohibited. (Id. at pp. 559-560.) Based upon principles of the home rule doctrine, the Vista court held that the wage levels of contract workers constructing locally funded public works are a municipal affair and exempt [1502]*1502from state regulation as these wage levels are not a statewide concern subject to state legislative control. (Id. at p. 556.) Nonetheless, the Vista court noted “that the state could use its own resources to support wages and vocational training in the state’s construction industry.” (Id. at p. 562.)

In 2013, in response to Vista, the Legislature adopted section 1782 “to provide a financial incentive for charter cities to require contractors on their municipal construction projects to comply with the state’s prevailing wage law by making these charter cities eligible to receive and use state funding or financial assistance for their construction projects.” (Stats. 2013, ch. 794, § l(j).) The Legislature noted that the bill does not address what is or is not a municipal affair and instead addresses how state funds can be used by charter cities. (Senate Com. on Labor and Industrial Relations, Analysis of Sen. Bill No. 7 (2013-2014 Reg. Sess.) as introduced Feb. 19, 2013, p. 6. (Bill Analysis) available online at <http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0001-0050/sb_7_cfa_20130312_095142_sen_comm.html> [as of Mar. 29, 2016].)

Generally, section 1782 provides that a charter city is ineligible to receive “state funding or financial assistance” on a construction project if either (a) the city has a charter provision or ordinance that authorizes a contractor not to pay prevailing wages on a public works contract or (b) the city has awarded, within the past two years, a public works contract without requiring the contractor to pay prevailing wages. (§ 1782, subds. (a), (b).) Section 1782 does not apply to funds or contracts awarded prior to January 1, 2015 (§ 1782, subd. (f)), nor to contracts for construction projects of $25,000 or less, or contracts for alteration, demolition, repair, or maintenance projects of $15,000 or less (§ 1782, subd. (d)(1)).

The Legislature made extensive findings when it adopted section 1782. It found that having an available workforce of skilled construction workers to efficiently complete both public and private infrastructure projects and maintaining such a workforce through the continual training of new workers to replace the aging workforce, presents a matter of statewide concern. (Stats. 2013, ch.

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245 Cal. App. 4th 1494, 26 Wage & Hour Cas.2d (BNA) 429, 200 Cal. Rptr. 3d 376, 2016 Cal. App. LEXIS 240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-el-centro-v-lanier-calctapp-2016.