Leopoldo Mendoza v. Fonseca McElroy Grinding Co.

913 F.3d 911
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 15, 2019
Docket17-15221
StatusPublished
Cited by1 cases

This text of 913 F.3d 911 (Leopoldo Mendoza v. Fonseca McElroy Grinding Co.) 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
Leopoldo Mendoza v. Fonseca McElroy Grinding Co., 913 F.3d 911 (9th Cir. 2019).

Opinion

FOR PUBLICATION

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT

LEOPOLDO PENA MENDOZA; No. 17-15221 JOSE ARMANDO CORTES; ELVIZ SANCHEZ, D.C. No. Plaintiffs-Appellants, 3:15-cv-05143-WHO

v. ORDER FONSECA MCELROY GRINDING CERTIFYING CO., INC.; GRANITE ROCK QUESTION TO THE COMPANY, CALIFORNIA Defendants-Appellees. SUPREME COURT

Filed January 15, 2019

Before: RAYMOND C. FISHER and MILAN D. SMITH, JR., Circuit Judges, and ELAINE E. BUCKLO, * District Judge.

Order

* The Honorable Elaine E. Bucklo, United States District Judge for the Northern District of Illinois, sitting by designation. 2 MENDOZA V. FONSECA MCELROY GRINDING CO.

SUMMARY **

Labor Law

The panel certified the following question to the California Supreme Court:

Is operating engineers’ offsite “mobilization work”—including the transportation to and from a public works site of roadwork grinding equipment—performed “in the execution of [a] contract for public work,” Cal. Lab. Code § 1772, such that it entitles workers to “not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed” pursuant to section 1771 of the California Labor Code?

This appeal requires us to resolve whether offsite mobilization work conducted in connection with a public works project is performed “in the execution of [a] contract for public work” such that it entitles workers to prevailing wages pursuant to the California Labor Code. Cal. Lab. Code §§ 1771–72. Whether the scope of the prevailing wage law is expanded or limited, the answer to this question could have a significant impact on California workers.

** This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. MENDOZA V. FONSECA MCELROY GRINDING CO. 3

We find no controlling precedent in the decisions of the California Supreme Court or Courts of Appeal, see Cal. R. Ct. 8.548(a)(2), and “considerations of comity and federalism suggest that the court of last resort in California, rather than our court, should have the opportunity to answer the question in the first instance.” Busker v. Wabtec Corp., 903 F.3d 881, 882 (9th Cir. 2018). We therefore respectfully ask the Supreme Court of California to exercise its discretion to decide the certified question set forth in Part I of this order.

I. Certified Question

Pursuant to Rule 8.548 of the California Rules of Court, we request that the California Supreme Court answer the following question of state law:

Is operating engineers’ offsite “mobilization work”—including the transportation to and from a public works site of roadwork grinding equipment—performed “in the execution of [a] contract for public work,” Cal. Lab. Code § 1772, such that it entitles workers to “not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed” pursuant to section 1771 of the California Labor Code?

The Court may reformulate our question, and its exposition of the issues involved should not be limited by the question’s phrasing. Cal. R. Ct. 8.548(f)(5). We will accept and follow the Court’s decision. Cal. R. Ct. 8.548(b)(2). 4 MENDOZA V. FONSECA MCELROY GRINDING CO.

II. Background

Plaintiffs-Appellants Leopoldo Pena Mendoza, Elviz Sanchez, and Jose Armando Cortes (Plaintiffs) are operating engineers and members of Operating Engineers Local No. 3. They worked on grinding crews, using milling equipment to break up and crush asphalt roadbeds so that new roads could be constructed. At times, their work duties included what they referred to as “mobilization” work, which

entailed loading milling machines, which w[ere] stored at [a] permanent yard or in offsite storage locations, onto a lowbed trailer; tying down or otherwise securing the heavy equipment onto the lowbed trailer; performing a light, brake, and fluid level check of a semi-truck used to transport the heavy equipment; driving a transport truck transporting the milling machine to a construction jobsite; and driving the transport truck transporting the milling machine back to [the] permanent yard.

As part of this mobilization process, Plaintiffs reported to a designated yard where the equipment was housed, and then performed the maintenance and transportation work. Neither the permanent yard nor the offsite storage locations depended on any public works project for their existence.

Defendant-Appellee Fonseca McElroy Grinding Co. Inc. (FMG), a roadwork construction company, was acquired by Defendant-Appellee Granite Rock Company (Granite Rock, and together with FMG, Defendants) in 2014. FMG and Granite Rock were both signatory parties to the Operating Engineers Local No. 3 Master Agreement for Northern California (Master Agreement). In 2010, FMG entered into MENDOZA V. FONSECA MCELROY GRINDING CO. 5

an additional Memorandum of Agreement (MOA) with Local No. 3, which provided for a “Lowbed Transport” wage rate for mobilization work; this rate for offsite work was lower than the Master Agreement rates for onsite construction. Granite Rock was also a signatory to the MOA.

Plaintiffs worked for FMG and then Granite Rock, including on public works construction projects, and received compensation based on the Master Agreement and MOA. Accordingly, although they received a prevailing wage for onsite construction on public works projects, they were not paid a prevailing wage for offsite mobilization work. Plaintiffs estimate that “[t]he ballpark difference between the two overtime rates in August [] 2012 was $67.72 (prevailing wage) and $23.89 (lowbed transportation) for an underpayment of $38.38 in the base pay.” Defendants note that “[t]he public works contracts under which Plaintiffs worked did not specify the daily schedule for Granite Rock’s workers,” and “[t]hus Granite Rock determined whether [they] would report directly to the construction jobsite or its yard” and “what tasks, if any, [they] would perform after completing their jobsite work.” 1

On November 9, 2015, Mendoza brought claims under the Fair Labor Standards Act and California labor laws for nonpayment of wages. Three months later, he, along with Sanchez and Cortes, filed an amended complaint.

The parties addressed the dispute that forms the basis of this appeal through cross-motions for partial summary judgment, which the district court heard on October 26,

1 The contracts for the specific work at issue in this case were not included in the record before us. 6 MENDOZA V. FONSECA MCELROY GRINDING CO.

2016. On November 28, 2016, the court entered an order in which it concluded that the offsite mobilization of equipment was not “in the execution” of a public works contract. Mendoza v. Fonseca McElroy Grinding Co., No. 15-cv- 05143-WHO, 2016 WL 6947552, at *1 (N.D. Cal. Nov. 28, 2016). Following this determination, the parties settled all remaining issues, except the dispute now before us.

A timely appeal to this court followed, raising the question of California law posed in Part I.

III. Explanation of Request for Certification

Under California law, “not less than the general prevailing rate of per diem wages for work of a similar character in the locality in which the public work is performed . . . shall be paid to all workers employed on public works.” Cal. Lab.

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