Jorge Amaya v. Power Design, Inc.

833 F.3d 440, 2016 WL 4269801
CourtCourt of Appeals for the Fourth Circuit
DecidedAugust 15, 2016
Docket15-1691
StatusPublished
Cited by10 cases

This text of 833 F.3d 440 (Jorge Amaya v. Power Design, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jorge Amaya v. Power Design, Inc., 833 F.3d 440, 2016 WL 4269801 (4th Cir. 2016).

Opinion

Vacated and remanded by published opinion. Judge DIAZ wrote the opinion, in which Judge FLOYD and Judge THACKER joined.

DIAZ, Circuit Judge:

Appellants, over twenty electrical construction workers, (the “Electrical Workers” or ‘Workers”) sought unpaid hourly and overtime wages from Appellee Power Design, Inc. for work completed under a federally funded subcontract between Wal-bridge/Brasfield Gorrie Joint Venture and Power Design.

As relevant to this appeal, the Electrical Workers brought suit under the Fair Labor Standards Act (FLSA), 29 U.S.C. § 201 et seq., seeking unpaid minimum and overtime wages and liquidated damages. The district court granted summary judgment in favor of Power Design. For the reasons that follow, we vacate the court’s judgment and remand for further proceedings.

I.

A.

In 2010, the U.S. Department of the Navy awarded Walbridge a federally fund *442 ed prime contract to design and construct a facility at the National Naval Medical Center in Bethesda, Maryland. Walbridge entered into a subcontract with Power Design (the “NEX Contract”) for electrical work at the new naval facility. The subcontract expressly incorporated the Davis-Bacon Act (DBA), 40 U.S.C. § 3141 et seq., and the Contract Work Hours and Safety Standards Act (CWHSSA), 40 U.S.C. § 3701 et seq., but not the FLSA.

Power Design, in turn, hired RDZ Electric to complete electrical installation work at the new naval facility, and they agreed to be bound by the NEX Contract terms. Power Design later entered into an equivalent subcontract for electrical installation work with ES & R Construction. 1 The Electrical Workers worked for RDZ or ES & R, and their employment was governed by the relevant subcontract (and therefore also the NEX Contract).

B.

The Electrical Workers sued Power Design for violating the FLSA, but they did not bring claims under the DBA or the CWHSSA. 2 The Workers alleged that the subcontractor “routinely required” them both to work over forty hours each week and to arrive at the jobsite fifteen minutes early each day to prepare the site, but “did not permit [them] to sign-in on the sign-in sheet until” the work shift’s “official” start time. J.A. A27. The Workers also alleged that although Power Design paid them (and provided some funds to cover the overtime hours), it did not compensate the Workers “all wages owed for each hour worked” and failed to pay them overtime at time-and-a-half their hourly rate, as required under the FLSA. J.A. A27-28.

Power Design moved for summary judgment, arguing that “no reasonable jury could possibly find that [it] violated the [FLSA]” because “there is no applicable independent cause of action for [the Workers’] overtime claims under the [DBA] ... and the [CWHSSA],” which governed the subcontract under which the Workers performed. J.A. A173, A181-85.

The district court granted the motion, finding that “the contract between [the Electrical Workers] and [Power Design] was a federal one to which the [DBA] and the [CWHSSA] applied],” and that neither act “provide[d] a private right of action but [provided] only for enforcement of the standards they impose by the Department of Labor.” Amaya v. Power Design, Inc., No. JFM-14-446, 2015 U.S. Dist. LEXIS 69165, at *2 (D. Md. May 28, 2015). Accordingly, the Electrical Workers “e[ould ]not circumvent those statutes by bringing claims under the [FLSA].” Id.

This appeal followed.

II.

Because the district court dismissed the Electrical Workers’ claim at summary judgment, we review that decision de novo to determine whether there is no genuine dispute of material fact and that Power Design is entitled to judgment as a matter of law. U.S. Dep’t of Labor v. N.C. Growers Ass’n, 377 F.3d 345, 350 (4th Cir. 2004).

As we explain, we find nothing in the relevant statutes barring the Electrical Workers from pursuing an FLSA claim. We begin our analysis with a review of the *443 relevant statutes and eases. Then we turn to the merits.

1.

The DBA and CWHSSA apply to federal (or federally funded or assisted) construction contracts and subcontracts, though they regulate different aspects of the employment relationship. The DBA applies to federal construction contracts valued over $2,000, and it requires contractors and subcontractors to pay their employees a “prevailing” wage set by the Secretary of Labor that consists of a “basic hourly rate of pay” and fringe benefits. 3 40 U.S.C. §§ 3142(a)-(b), 3141(2). Although the DBA does not require overtime compensation, it specifies the calculation of overtime wages under “any federal law” to be based on the “regular or basic hourly rate” determined by the Secretary. § 3142(e) (citing § 3142(2)(A)). The CWHSSA applies to “any” federally funded or assisted construction contracts and subcontracts for public works that are valued over $100,000, and requires contractors and subcontractors to pay their employees time and one-half their “basic rate of pay” for all hours worked over forty each week. §§ 3701, 3702(a).

Congress passed the DBA in 1931 to set an earnings floor for federal contract employees, to protect against substandard wages, and to promote the hiring of local labor. See Univs. Research Ass’n, Inc. v. Coutu, 450 U.S. 754, 771, 773-74, 101 S.Ct. 1451, 67 L.Ed.2d 662 (1981); S. Rep. No. 88-963, at 2 (1964), as reprinted in 1964 U.S.C.C.A.N. 2339, 2339-40. The CWHSSA has a complementary objective: to “bring order to the confusion which ... marks the application and enforcement of work standards legislation in employment that results from Federal Government contracts or employment.” S. Rep. No. 87-1722, at 1 (1962), as reprinted in 1962 U.S.C.C.A.N. 2121, 2121; see also Janik Paving & Constr., Inc. v. Brock, 828 F.2d 84, 89 (2d Cir. 1987) (discussing the act’s purpose). Specifically, the CWHSSA seeks to make the eight-hour day, the forty-hour workweek, and corresponding overtime pay applicable uniformly to federal contract and subcontract work. S. Rep. No. 1722, at 2.

While the DBA and CWHSSA regulate different aspects of federal construction contracts, they have similar enforcement mechanisms, which are internal to the Department of Labor but reviewable under the Administrative Procedure Act, 5 U.S.C. § 702. See 40 U.S.C.

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Bluebook (online)
833 F.3d 440, 2016 WL 4269801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jorge-amaya-v-power-design-inc-ca4-2016.