Henson v. C. Overaa & Company

238 Cal. App. 4th 184, 189 Cal. Rptr. 3d 115, 24 Wage & Hour Cas.2d (BNA) 1864, 2015 Cal. App. LEXIS 572
CourtCalifornia Court of Appeal
DecidedJune 29, 2015
DocketA139966
StatusPublished
Cited by7 cases

This text of 238 Cal. App. 4th 184 (Henson v. C. Overaa & Company) 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
Henson v. C. Overaa & Company, 238 Cal. App. 4th 184, 189 Cal. Rptr. 3d 115, 24 Wage & Hour Cas.2d (BNA) 1864, 2015 Cal. App. LEXIS 572 (Cal. Ct. App. 2015).

Opinion

*188 Opinion

DONDERO, J.

INTRODUCTION

This appeal arises out of a dispute over the meaning of certain provisions of the “Prevailing Wage Law” and Shelley-Maloney Apprentice Labor Standards Act of 1939 (Shelley-Malony Act) 1 relating to the employment of apprentices on public works projects. Floyd Henson, Gabriel Maestretti, and Leonard Minor (appellants) assert that C. Overaa & Company (respondent) violated the statutes by hiring construction craft laborer (laborer) apprentices instead of pipe fitter apprentices to work on the construction of certain water treatment plants. 2 Appellants are pipe fitter apprentices, and they seek to represent a class of similarly situated individuals who lost wages and training as a result of respondent’s alleged violations. The trial court granted summary judgment in favor of respondent on the ground the journeymen on the relevant projects were classified as laborers, and the Prevailing Wage Law merely required employers to hire apprentices who are in the same occupation as the journeymen on their projects. Appellants assert the trial court erred because the statutes require a contractor to select apprentices based not on their job title or union affiliation but the work processes on which they have been expressly approved to train. We find the argument unpersuasive and affirm. 3

BACKGROUND

A. Legal Background

The Prevailing Wage Law requires that contractors on public works projects pay their employees union wages. (§§ 1770, 1773.) Among other *189 things, the goals of the statute are “to protect employees from substandard wages that might be paid if contractors could recruit labor from distant cheap-labor areas; [and] to permit union contractors to compete with nonunion contractors.” (Lusardi Construction Co. v. Aubry (1992) 1 Cal.4th 976, 987 [4 Cal.Rptr.2d 837, 824 P.2d 643].) Prevailing wage rates are set by the Department of Industrial Relations (DIR) and are predicated on applicable wage rates established by collective bargaining agreements within the locality and in the nearest labor market, among other factors. (§ 1773.) Where the rates are not prevailing in a locality, DIR must obtain and consider additional data from the labor organizations and employers or employer associations concerned. {Ibid.) Prevailing wage rate determinations generally list the scope of work and craft classifications to which the rates apply.

If the Prevailing Wage Law required contractors to pay all employees union wages, it would present a significant obstacle to the hiring and training of lesser-skilled apprentices. (See Electrical Joint Apprenticeship Com. v. MacDonald (9th Cir. 1991) 949 F.2d 270, 274.) “The basic idea of an apprenticeship program is to allow on-the-job training for apprentices who work under the supervision of journeymen and thus to encourage and assist persons to enter into the skilled work force .... In order for such an apprenticeship program to work, it is essential that the employer be able to pay lesser wages to apprentices while they are in training.” {Ibid.)

The drafters of the Prevailing Wage Law took these considerations into account. The statute allows contractors to pay an apprentice a lower “apprentice wage” if that apprentice is enrolled in a state-approved apprenticeship program. (§ 1777.5, subd. (c); see id., subd. (b).) Thus, while the sponsor of an apprenticeship program need not obtain state approval, there are significant financial incentives to do so. (Southern Cal. Ch. of Associated Builders etc. Com. v. California Apprenticeship Council (1992) 4 Cal.4th 422, 428-429 [14 Cal.Rptr.2d 491, 841 P.2d 1011].) Further, the statute requires employers who hire workers in any “apprenticeable craft or trade” to also hire a certain number of apprentices. (§ 1777.5, subd. (d).) Specifically, contractors must hire at least one apprentice for every five journeymen employed on the public works project; however, an approved apprenticeship program may grant an exemption under certain circumstances. (§ 1777.5, subds. (g) & (k).) To facilitate training opportunities, the Prevailing Wage Law requires contractors to endeavor to employ apprentices during the same time period that journeymen in the same craft or trade are employed at the jobsite. (§ 1777.5, subd. (h).)

Apprenticeship standards and training are governed by the ShelleyMaloney Act, which provides that the Director - of DIR is ex officio the administrator of apprenticeship. (§ 3072.) Apprenticeship standards are also *190 administered by two entities under the auspices of DIR: the Division of Apprenticeship Standards (DAS) and the California Apprenticeship Council (CAC). (§ 3070.) The chief of DAS administers the apprenticeship law, acts as secretary to CAC, and is empowered to investigate standards for apprenticeship programs. (§§ 3073, 3090.) Those wishing to establish a state-sanctioned apprenticeship program must submit written apprenticeship standards to DAS for approval. (Reg. § 212). Among other things, the written standards must include a statement of “the occupation(s) and an outline of the work processes in which the apprentice will receive supervised work experience and training on the job.” (Reg. § 212, subd. (a)(1).)

CAC meets at the direction of DIR and aids DIR in the formulation of policies for the effective administration of apprenticeship laws. (§ 3071.) CAC is also empowered to issue rules and regulations which establish standards for apprenticeship programs and criteria for the selection procedure of apprentices, among other things. {Ibid.) Under the Prevailing Wage Law, contractors who employ workers in any apprenticeable craft or trade must make contributions to CAC, but may take as a credit for payment any amounts paid to an approved apprenticeship program that can supply apprentices to the site of their public works project. (§ 1777.5, subd. (m)(l).)

B. Facts and Procedural History

Respondent is a general contractor and a signatory to a collective bargaining agreement (CBA) with the Northern California District Council of Laborers (Laborers Union). The CBA requires respondent to employ construction craft laborers represented by the Laborers Union. The CBA also obligates respondent to hire apprentices enrolled in the state-approved apprenticeship program sponsored by the Laborers Union. Whenever possible, respondent must rotate laborer apprentices through different types of work so that they may become trained in a variety of work operations and work skills.

This case arises out of respondent’s construction work on dozens of water and sewage treatment systems in Northern California, including those owned by the East Bay Municipal Utility District and the Alameda County Water District.

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238 Cal. App. 4th 184, 189 Cal. Rptr. 3d 115, 24 Wage & Hour Cas.2d (BNA) 1864, 2015 Cal. App. LEXIS 572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henson-v-c-overaa-company-calctapp-2015.