Electrical Joint Apprenticeship Committee v. MacDonald

949 F.2d 270, 1991 WL 227779
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 8, 1991
DocketNos. 90-15095, 90-15395
StatusPublished
Cited by10 cases

This text of 949 F.2d 270 (Electrical Joint Apprenticeship Committee v. MacDonald) 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
Electrical Joint Apprenticeship Committee v. MacDonald, 949 F.2d 270, 1991 WL 227779 (9th Cir. 1991).

Opinion

HUG, Circuit Judge:

In this action, the plaintiffs sought an injunction to prevent the Nevada Labor Commissioner from enforcing a provision of the Nevada prevailing wage statutes for state public works. The statutes require that employers contracting for construction on public works projects for any public body in the state agree to pay the prevailing wages in the county in which the public work is located. The statute provides an exemption for apprentice programs approved by the Nevada State Apprenticeship Council, but does not allow such exemption for apprenticeship programs approved by the Bureau of Apprenticeship and Training of the United States Department of Labor.

The plaintiffs contend that the enforcement of the prevailing wage statutes, without allowing an exemption for the apprenticeship program of the plaintiff Associated Builders and Contractors, Inc., Sierra Nevada Chapter (“ABC”), which had the approval of the federal Bureau of Apprenticeship and Training (“BAT”), was preempted by the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. § 1144(a), and was also a denial of equal protection under the United States Constitution. The district court granted a permanent injunction enjoining the Labor Commissioner from enforcing that provision of the prevailing wage statute so as to deny the exemption to the federally approved program. 731 F.Supp. 966. We affirm.

I.

The Nevada Revised Statutes (“NRS”) §§ 338.010-338.090 are “prevailing wage” statutes, patterned after the Davis-Bacon Act, 40 U.S.C. §§ 276a-276a-5, which applies to federal public works. The prevailing wage statutes provide that contractors on all public works projects for any public body in the state must agree to pay the prevailing wages in the county in which the public work is located. Failure to do so subjects the contractor to forfeitures and criminal penalties. See Nev.Rev.Stat. §§ 338.010-338.090 (1978).

NRS § 338.080 provides, “None of the provisions of NRS [§§] 338.010-338.090, inclusive, apply to ... [apprentices recorded under the provisions of chapter 610 of NRS.” Chapter 610 of NRS provides for state approved apprenticeship programs. NRS § 610.144 of Chapter 610 sets forth statutory standards for eligibility for registration and approval by the State Apprenticeship Council. Among the duties of the State Apprenticeship Council are duties to establish standards for programs that are not lower than the statutory standards and to register and approve or reject proposed programs and standards for apprenticeship. NRS §§ 610.090 and 610.095.

The net effect of NRS § 338.080 and these provisions of Chapter 610 is that, unless an apprenticeship program meets the standards of NRS § 610.144 and those established by the State Apprenticeship Council and also obtains the approval of the State Apprenticeship Council, the contractor will have to pay the same prevailing wage to apprentices as to journeymen and, thus, will face a significant disincentive to use apprentices on public works jobs.

II.

An unusual procedure was followed in this case, in that counsel stipulated that the court would render the final decision on the basis of the counsels’ arguments to the court in lieu of a trial on the merits. On this basis, the district court rendered its [272]*272findings of fact and conclusions of law and judgment.

The pertinent facts are as follows. Plaintiff ABC is a non-profit trade association representing contractors who bid and enter into contracts to construct private and public works projects in the State of Nevada. Plaintiff Electrical Joint Apprenticeship Committee (“JAC”) is an electrical joint apprenticeship training program approved by the federal BAT.1 The JAC is sponsored by ABC and is not the product of a collective agreement with any labor organization. The Sierra Nevada Chapter ABC Apprenticeship Trust Fund is an employee benefit trust existing and regulated pursuant to the provisions of ERISA, which was created for the purpose of funding the JAC apprenticeship training programs. Defendant Frank MacDonald is the Labor Commissioner of the State of Nevada and is empowered and required to enforce the provisions of NRS §§ 338.010-338.090.

On November 8, 1984, ABC presented its proposed JAC nonunion electrician apprenticeship standards to the State Apprenticeship Council. The State Apprenticeship Council rejected the proposed apprenticeship standards and refused to approve plaintiffs’ application for the apprenticeship program despite the fact that the program already had been approved by the federal BAT. The district court found that no nonunion construction trade apprenticeship program has ever been approved by the Nevada State Apprenticeship Council, although many have applied.

It is conceded that in the enforcement of the prevailing wage statutes defendant MacDonald intends not to apply the apprenticeship exemption prescribed by NRS § 338.080 to the Joint Apprenticeship Committee.

III.

We first consider the issue of preemption by ERISA as held by the district court. ERISA is a “comprehensive remedial statute ‘designed to protect the interest of employees in pension and welfare plans, and to protect employers from conflicting and inconsistent state and local regulation of such plans.’ ” Local Union 598, Plumbers & Pipefitters Industry Journeymen & Apprentices Training Fund v. J.A. Jones Const. Co., 846 F.2d 1213, 1217 (9th Cir.1988) (Jones) (quoting Scott v. Gulf Oil Corp., 754 F.2d 1499, 1501 (9th Cir.1985)), aff'd, 488 U.S. 881, 109 S.Ct. 210, 102 L.Ed.2d 202 (1988). ERISA governs “employee benefit plans,” 29 U.S.C. § 1001, et seq., which term is statutorily defined to include an “employee welfare benefit plan.” 29 U.S.C. § 1002(3). An “employee welfare benefit plan” in turn is defined by ERISA as follows:

any plan, fund, or program which was heretofore or is hereafter established or maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise, (A) medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death or unemployment, or vacation benefits, apprenticeship or other training programs,

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949 F.2d 270, 1991 WL 227779, Counsel Stack Legal Research, https://law.counselstack.com/opinion/electrical-joint-apprenticeship-committee-v-macdonald-ca9-1991.