Dillingham Construction N.A., Inc. v. County of Sonoma

57 F.3d 712
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 7, 1995
DocketNo. 92-15247
StatusPublished
Cited by12 cases

This text of 57 F.3d 712 (Dillingham Construction N.A., Inc. v. County of Sonoma) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dillingham Construction N.A., Inc. v. County of Sonoma, 57 F.3d 712 (9th Cir. 1995).

Opinion

BRUNETTI, Circuit Judge:

The issue presented in this case is whether ERISA preempts the application of a state prevailing wage law that requires payment of prevailing wages to employees in apprenticeship programs that have not received state approval but allows the payment of lower apprenticeship wages to employees participating in state approved programs. We hold that it does.

I. CALIFORNIA APPRENTICESHIP REGULATIONS

As described by the district court, California’s administrative framework for regulating apprenticeships is complex. Rules and regulations establishing minimum standards of wages, hours and working conditions for apprentices are created by the California Apprenticeship Council (“CAC”) which is located within the Division of Apprenticeship Standards (“DAS”). The California Code of Regulations provides that “[apprenticeship programs shall be established by written standards approved by the Chief of DAS” and sets forth a detailed list of program standards that must be covered before the program is approved. Cal.Code Regs. tit. 8, § 212.

The CAC exercises approval authority over apprenticeship programs pursuant to the Fitzgerald Act, 29 U.S.C. § 50 and its implementing regulations, 29 C.F.R. §§ 29.1-29.13. The federal regulations establish criteria under which a state agency may be recognized as the appropriate agency for registering local apprenticeship programs for federal purposes. 29 C.F.R. § 29.12.

Section 1771 of the California Labor Code requires state public works contractors to pay their employees “prevailing wages.”1

Contractors who are awarded public works projects agree to pay prevailing wages to all their construction employees at the journeyman level in specified trades. Public works contractors that employ apprentices can pay them an amount lower than the prevailing journeyman wage so long as those apprentices are part of an approved apprenticeship program under California Labor Code section 1777.5.2

Until employees on a public works project are enrolled in an apprenticeship program whose training and education standards meet state-established mínimums, the prevailing wage statute requires that they be paid at higher, journeyman rates.

II. FACTS AND PROCEEDINGS

Dillingham Construction was awarded a state public works contract to construct a [716]*716detention facility in Sonoma County. The detention facility project was a public works project within the meaning of California Labor Code § 1720. Dillingham Construction subcontracted electric work to Sound Systems Media, a sole proprietorship of Manuel Arceo. Arceo was a member of the International Brotherhood of Electric Workers (“IBEW”).

When Sound Systems began work on the job, it paid its employees in accordance with the collective bargaining agreement between the IBEW Local 202 and the National Electric Contractors Association which included a scale for apprentice electronic technicians and required Sound Systems to make contributions to the Northern California Sound and Communications Joint Apprenticeship Training Committees (“JATC”), a state approved JATC. JATCs are the source of the apprentices and provide for their training. However, after the job began, the IBEW Local 202 withdrew its representation of Sound System’s electronics technician employees, leaving Sound Systems without a collective bargaining agreement to establish compensation. About a month after the IBEWs withdrawal, Sound Systems joined the Northern California Electrical Sound Communications Association (“NCESCA”), a multi-employer association of electrical contractors. NCESCA signed a collective bargaining agreement with the National Electronic Systems Technicians Union (“NESTU”) which provided wage scales for all employees, including apprentices and covered Sound Systems’ electronic technicians. NESTU was associated with the Electronic and Communications JATC, a new JATC which had not been approved by the State when Sound Systems began relying on it for apprentices. (State approval was later received but is not retroactive.) Sound Systems paid its employees in compliance with this collective bargaining agreement. In some instances, the rates under the collective bargaining agreement were less than the state prevailing wage rates.

After an investigation, the California Division of Labor Standards Enforcement issued a Notice Withholding Payment from Dilling-ham Construction with Sonoma County due to Sound System’s failure to pay some of its workers prevailing wage rates in violation of California Labor Code § 1771. Dillingham Construction is liable for the acts of its subcontractors under California Labor Code § 1775.

Dillingham does not dispute that Sound Systems paid some of its workers less than the prevailing wages for journeymen, but claims that those workers were “apprentices” and that Sound Systems was entitled to pay them less than journeyman prevailing wage rates pursuant to the NESTU collective bargaining agreement. However, it is uncontested that the “apprentices” did not come from a state approved JATC.

In this action, the plaintiffs Dillingham Construction and Sound Systems Media (collectively referred to as “Dillingham”) sought a declaratory judgment that the enforcement of California’s journeyman prevailing wage rate pursuant to California Labor Code sections 1773-1777.1 was preempted by the National Labor Relations Act (“NLRA”), 29 U.S.C. §§ 151-158 and the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. §§ 1001-1461, and that by attempting to enforce it, the State interfered with rights established under federal labor law, in violation of 42 U.S.C. § 1983.

On cross motions for summary judgment, the district court held that the California prevailing wage law is not preempted by the NLRA or ERISA and granted summary judgment in favor of the Division of Labor Standards Enforcement, the County of Sono-ma, and the Division of Apprentice Standards (collectively referred to as “the State”).

A grant of summary judgment is reviewed de novo. Hydrostorage Inc. v. Northern Cal. Boilermakers Local Joint Apprenticeship Comm., 891 F.2d 719, 726 (9th Cir.1989), cert. denied, 498 U.S. 822, 111 S.Ct. 72, 112 L.Ed.2d 46 (1990). The parties agree that there are no disputed issues of material fact. Therefore, we need only determine whether the district court correctly applied the relevant law. Id.

The district court had jurisdiction pursuant to 28 U.S.C. § 1331. The appeal was timely, [717]*717and we have jurisdiction under 28 U.S.C. § 1291. We reverse.

III. DISCUSSION

A. Estoppel

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Bluebook (online)
57 F.3d 712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dillingham-construction-na-inc-v-county-of-sonoma-ca9-1995.