D.W. Close Co. v. Department of Labor & Industries

143 Wash. App. 118
CourtCourt of Appeals of Washington
DecidedFebruary 11, 2008
DocketNo. 58444-8-I
StatusPublished
Cited by29 cases

This text of 143 Wash. App. 118 (D.W. Close Co. v. Department of Labor & Industries) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D.W. Close Co. v. Department of Labor & Industries, 143 Wash. App. 118 (Wash. Ct. App. 2008).

Opinion

¶1 The Washington Department of Labor and Industries (Department) filed notices of violation against D.W. Close Company, Inc., and Burke Electric, LLC, for failure to comply with the prevailing wage act (Act), chapter 39.12 RCW, that allegedly occurred during the installation of the sound and data systems in Seattle’s McCaw Hall. Workers from both companies pulled low voltage wiring through conduit of more than 10 feet in length during the installation of these systems and were compensated as “electronic technicians.” The Department contends that this job is covered by the “inside wireman” scope of work in WAC 296-127-01323 requiring a higher prevailing wage; D.W. Close and Burke contend that such work falls under the “electronic technician” scope of work in [123]*123WAC 296-127-01322. The administrative law judge (ALJ), director of the Department, and the superior court all agreed on the interpretation of WAC 296-127-01323 and ordered the employers to pay additional wages for time spent performing inside wireman work. The superior court also upheld the validity of the WAC provision. D.W. Close and Burke appeal and challenge the validity of the “electronic technician” scope of work. We affirm.

Appelwick, C.J.

[123]*123 FACTS

¶2 D.W. Close and Burke Electric (collectively Employers) were subcontractors involved in the installation of low voltage wiring during the construction of McCaw Hall. D.W. Close installed security and voice/data systems for McCaw Hall. Burke Electric installed the sound system, the audiovisual system, and the intercom/paging system. During this work, employees for the Employers pulled low voltage wiring through conduit to control panels, terminals, or end devices. The wires were pulled through conduit greater than 10 feet in length, sometimes for hundreds of feet.

¶3 As a public project, the McCaw Hall construction was subject to the Act. The Employers were required to pay their workers no “less than the prevailing rate of wage for an hour’s work in the same trade or occupation in the locality.” RCW 39.12.020. For the purposes of the Act, the Department created regulations within the WAC that designate scope of work descriptions for each trade and occupation involved in public work. WAC 296-127-013. The scope of work for “electronic technicians” and for “inside wireman electrician” each cover pulling wire through conduit. WAC 296-127-01322, -01323. D.W. Close and Burke both employed “electronic technicians,” most of whom were not authorized to perform inside wireman work. These workers were paid wages well above the prevailing wage for electronic technicians, but were not paid the prevailing wage for inside wireman.

¶4 As one means of overseeing compliance with prevailing wage laws, labor unions used member dues to fund [124]*124Rebound, a nonprofit organization which monitors and investigates public works projects. In January 2003, Greg Boyd, president of Rebound and a union organizer, and David Hellene, a Rebound investigator, approached D.W. Close workers about their work on the McCaw Hall project. The two Rebound representatives concluded that inside wiremen should have performed the long wire pulls through conduit, instead of electronic technicians. The men spoke with D.W. Close’s management but could come to no resolution on this issue, so they filed a wage complaint alleging violation of the Act. After the wage complaint, Rebound engaged in factual investigation of the claim. The Department’s prevailing wage investigator, James Ashcraft, provided time cards and job codes for Rebound’s analysis. Rebound prepared a spreadsheet showing the amount of time employees spent performing inside wire-man and electronic technician tasks. This information was turned over to the Department to support the wage complaint.

¶5 In August 2003, three Burke employees filed wage complaints against the company, alleging that they pulled wire through conduit longer than 10 feet. James Ashcraft also provided Rebound with time card and job code data and allowed the organization to assist with the investigation into these complaints. Rebound prepared a similar spreadsheet showing the time that Burke employees spent on inside wireman work.

¶6 Ashcraft wrote the Employers, outlining his contentions, and met with them in order to allow them an opportunity to provide data showing they did not violate prevailing wage laws. The Employers believed electronic technicians could perform all of the work. The Department issued a notice of violation against D.W. Close in November 2003 and against Burke in March 2004. The Employers appealed and received an evidentiary hearing in front of an ALJ. The ALJ found that the Employers had underpaid the workers; he also found the rule invalid but acknowledged that he had no authority to determine validity. The Employ[125]*125ers appealed to the director, who agreed with the Department’s interpretation but struck all findings and conclusions related to the validity of the electronic technician rule. The director’s findings of facts and conclusions superseded those entered by the ALJ.

¶7 Finally, the Employers appealed to Kang County Superior Court, challenging the director’s order, the interpretation of the electronic technician scope of work, Rebound’s status as an interested party, and declaratory judgment on the validity of the rule. The superior court found that the electronic technician rule applies only to wire pulled through conduit less than 10 feet. The court also found that substantial evidence supported the director’s order, that Rebound is an interested party, and that the rule was not arbitrary and capricious.

DISCUSSION

f 8 The Washington Administrative Procedure Act (WAPA), chapter 34.05 RCW, allows reversal of an administrative decision “when, inter alia: (1) the administrative decision is based on an error of law; (2) the decision is not based on substantial evidence; or (3) the decision is arbitrary or capricious.” Tapper v. Employment Sec. Dep’t, 122 Wn.2d 397, 402, 858 P.2d 494 (1993) (emphasis added) (citing RCW 34.05.570(3)). In this case, the Employers challenge the Department’s decision as both arbitrary and capricious and based on erroneous interpretations and applications of law under RCW 34.05.570(3)(d), (i). The Employers bear the burden of demonstrating that the Department’s action was invalid. RCW 34.05.570(1).

¶9 In reviewing an administrative action, the appellate court sits in the same position as the superior court. Tapper, 122 Wn.2d at 402. “An appellate court accepting an appeal from an agency decision applies the proper standard of review directly to the record of the administrative proceedings and not to the findings and conclusions of the superior court.” Brandley v. Dep’t of Employment Sec., 23 [126]*126Wn. App. 339, 342, 595 P.2d 565 (1979).

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Bluebook (online)
143 Wash. App. 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dw-close-co-v-department-of-labor-industries-washctapp-2008.