Construction Employers Assn. v. Cal. Dept. of Industrial Relations etc. CA3

CourtCalifornia Court of Appeal
DecidedMarch 8, 2024
DocketC097709
StatusUnpublished

This text of Construction Employers Assn. v. Cal. Dept. of Industrial Relations etc. CA3 (Construction Employers Assn. v. Cal. Dept. of Industrial Relations etc. CA3) 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
Construction Employers Assn. v. Cal. Dept. of Industrial Relations etc. CA3, (Cal. Ct. App. 2024).

Opinion

Filed 3/8/24 Construction Employers Assn. v. Cal. Dept. of Industrial Relations etc. CA3 NOT TO BE PUBLISHED California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA THIRD APPELLATE DISTRICT (Sacramento) ----

CONSTRUCTION EMPLOYERS C097709 ASSOCIATION et al., (Super. Ct. No. 34-2021- Plaintiffs and Respondents, 80003714-CU-WM-GDS)

v.

CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS, DIVISION OF LABOR STANDARDS ENFORCEMENT et al.,

Defendants and Respondents;

CALIFORNIA STATE PIPE TRADES JOINT APPRENTICESHIP COMMITTEE et al.,

Movants and Appellants.

THE LABORERS TRAINING AND RETRAINING C097709 TRUST OF SOUTHERN CALIFORNIA et al., (Super. Ct. No. 34-2021- Plaintiffs and Respondents, 80003715-CU-WM-GDS)

CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS, DIVISION OF LABOR STANDARDS ENFORCEMENT et al., Defendants and Respondents;

1 CALIFORNIA STATE PIPE TRADES JOINT APPRENTICESHIP COMMITTEE et al.,

ASSOCIATED GENERAL CONTRACTORS C097709 OF CALIFORNIA, INC., et al. (Super. Ct. No. 34-2021- Plaintiffs and Respondents, 80003735-CU-WM-GDS)

CALIFORNIA DEPARTMENT OF INDUSTRIAL RELATIONS, DIVISION OF LABOR STANDARDS ENFORCEMENT et al.,

CALIFORNIA STATE PIPE TRADES JOINT APPRENTICESHIP COMMITTEE et al.,

In this appeal we consider whether a group of apprentices and apprenticeship programs should have been granted leave to intervene in three related lawsuits challenging the validity of regulations pertaining to the employment of registered apprentices on public works projects. The movant-appellants (Movants) contend that the trial court should have granted their motion for mandatory or permissive intervention under Code of Civil Procedure section 387, subdivision (d)(1)(B) or (d)(2).1 We conclude the trial court properly denied mandatory intervention because Movants failed to show they were not adequately represented by the existing parties. We further conclude the trial court was within its discretion to deny permissive intervention

1 Undesignated section references are to the Code of Civil Procedure.

2 on the ground that the reasons for intervention were outweighed by the rights of the existing parties to conduct the litigation on their own terms. We therefore affirm the order denying intervention. LEGAL BACKGROUND In general, California’s prevailing wage law requires that workers employed on public works projects be paid not less than the prevailing rate of wages for work of a similar character in the locality in which the public work is performed. (Lab. Code, § 1771.) The prevailing wage law is designed to benefit employees on public works projects by, among other things, protecting them from the substandard wages that might otherwise be paid if contractors could hire cheaper out-of-market labor. (City of El Centro v. Lanier (2016) 245 Cal.App.4th 1494, 1501.) Labor Code section 1777.5 is the provision of the prevailing wage law governing apprentice employment. (Southern California Cement Masons Joint Apprenticeship Committee v. California Apprenticeship Council (2013) 213 Cal.App.4th 1531, 1536 (Cement Masons).) Labor Code section 1777.5 promotes apprenticeship by requiring contractors who hire workers in any “apprenticeable craft or trade” to also hire a certain number of apprentices.2 (Henson v. C. Overaa & Co. (2015) 238 Cal.App.4th 184, 189 (Henson); Cement Masons, supra, at pp. 1536-1537; Lab. Code, § 1777.5, subds. (d), (g), (i).) For contractors, the major benefit of hiring apprentices is that they can pay them a special “apprentice wage” rate, which is typically lower than the journey-level prevailing wage rate. (Lab. Code, § 1777.5, subd. (b)(1); Henson, supra, at p. 189; Associated Builders & Contrs. of S. Cal. v. Nunn (9th Cir. 2004) 356 F.3d 979, 983.) Only registered apprentices from approved apprenticeship programs are eligible to receive the

2 “ ‘Apprenticeable craft or trade’ . . . means a craft or trade determined as an apprenticeable occupation in accordance with rules and regulations prescribed by the California Apprenticeship Council.” (Lab. Code, § 1777.5, subd. (d).)

3 lower wage rates, and the employment and training of each such apprentices must be “in accordance with” either (1) the apprenticeship standards and agreements under which he or she is training, or (2) the rules and regulations of the California Apprenticeship Council (the Council). (Lab. Code, § 1777.5, subd. (c).) Oversight of apprenticeship standards and programs is vested in two entities within the Department of Industrial Relations: The Division of Apprenticeship Standards and the Council. (Henson, supra, 238 Cal.App.4th at pp. 189-190.) The Division’s responsibilities include administering the apprenticeship law and investigating standards for apprenticeship programs. (Henson, at p. 190; Lab. Code, §§ 3073, 3075, 3090.) The Council’s responsibilities include issuing rules and regulations establishing apprenticeship standards for minimum wages, maximum hours, and working conditions in the building and construction trades. (Henson, at p. 190; Lab. Code, §§ 3070, 3071, subd. (a).) The Council is expressly empowered by statute to promulgate regulations interpreting the substantive requirements of Labor Code section 1777.5 and defining what is an “apprenticeable occupation” for purposes of that statute. (Lab. Code, §§ 1777.5, subd. (d), 1777.7, subd. (g).) FACTUAL AND PROCEDURAL BACKGROUND This appeal involves a challenge to the Council’s amendments to regulations pertaining to the employment of registered apprentices on public works projects (Notice of Approval of Regulatory Action, Off. of Adm. Law, Matter No. 2021-0222-02 (Aug. 6, 2021), amending Cal. Code of Regs., tit. 8, § 202 et seq. (the Regulations). As relevant here, the amendments made two changes intended to “clarify and make more specific” the substantive requirements for apprentices to qualify for payment of “apprentice wages” under Labor Code section 1777.5. The first was to revise the definition of “ ‘Apprenticeable Occupation’ ” in section 205, subdivision (c) of the Regulations to expressly tie that definition to “the work processes contained in the approved

4 apprenticeship standards under which [the] apprentices are training.”3 (Cal. Code Regs., tit. 8, § 205, subd. (c).) The second was to amend section 230.1, subdivision (c) of the Regulations to require that contractors only assign registered apprentices work that is included in the apprenticeship standards under which such apprentices are training, and not any other work. (Cal. Code Regs., tit. 8, § 230.1, subd. (c).) To qualify for the special “apprentice wage” rate under the revised Regulations, a registered apprentice must be performing work that is part of the work processes specifically enumerated in the apprentice’s approved training program. The Council’s initial statement of reasons for the Regulations explained that the purpose of the amendments was to “ensure that the work performed by apprentices on public works is a genuine part of their training program leading to journey-level status, and conversely that apprentices will not be used as a source of cheap labor for work processes that are not part of their structured and approved training program.” Plaintiffs filed three separate petitions/complaints challenging the validity of the Regulations.

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