Logan City v. Industrial Commission

38 P.2d 769, 85 Utah 131, 1934 Utah LEXIS 134
CourtUtah Supreme Court
DecidedDecember 12, 1934
DocketNo. 5560.
StatusPublished
Cited by3 cases

This text of 38 P.2d 769 (Logan City v. Industrial Commission) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Logan City v. Industrial Commission, 38 P.2d 769, 85 Utah 131, 1934 Utah LEXIS 134 (Utah 1934).

Opinion

*132 STRAUP, Chief Justice.

Logan City owns and operates an electric lighting plant and a water system by means of which it for compensation supplies light, heat, and water for domestic purposes to its inhabitants. Because of unemployment conditions prevailing in Logan City and elsewhere, a number of its patrons were unable to pay for light, heat, or water so furnished them by the city, and thus became indebted to it on such account. To' pay off or to apply on such indebtedness, and for a continuance of service, and because of such unemployment conditions workmen were unable to obtain employment, an agreement was entered into by and between the city and forty or more of its patrons, by the terms of which the city agreed to furnish work to such patrons repairing and oiling streets of the city for which the city agreed to pay the workmen $3 per day for common labor, working 8 hours a day, or 37% cents an hour, $2 of which were to be applied on the indebtedness and for continued service, and the remaining $1 to be paid to the workmen to be used by them as they desired. The proposition was accepted by the men without reservation who entered upon their employment, which consisted, in some instances, of repairing already constructed streets for oiling and oiling them, in other instances leveling the surface of them and spreading oil upon them. Some of the work was done in 1932 some in 1933 in all on constructed public streets of approximately 180 blocks. The employment lasted several months. The amount so paid was .received by the workmen without complaint and none made until after the work was completed and the employment ceased. The city was without funds to do or carry on the work and to enable it to do so salaried employees of the city consented to a reduction of their salary the amount so deducted to be used to carry on the work; and, in addition thereto, the city temporarily transferred moneys from other departments of the city to the street department. Otherwise the city was financially unable to carry on the work or give the employment.

After the work was done and the workmen fully paid in *133 accordance with the agreement, a representative or the secretary at Logan of the unemployed, for and on behalf of some of the workmen who joined therein, filed an application or petition with the Industrial Commission alleging that the city worked the men on a basis of 8 hours per day 6 days a week and in some instances on Sundays, that the moneys out of which the cost of the work was carried on was not set up in the city’s budget as emergency relief fund nor provided from R. F. C. funds; that the program was not initiated as emergency relief for unemployment, and that the road oiling program constituted “public works,” as defined by Session Laws of Utah 1933, e. 39, and was carried on in violation thereof. Whereupon the petitioners prayed that the commission order the city to pay each workman who worked on the road oiling program an amount sufficient to compensate Mm for the difference between what was paid by the city and what should have been paid under the schedule of wages as fixed by the Industrial Commission.

A citation was issued to the city in response to which it, among other things, challenged the jurisdiction of the commission to hear or try the alleged controversy, denied that the work done was “public work” within the meaning of the statute referred to, averred that the wage paid by the city was the prevailing rate of wages in the locality in which the work was performed asserted the unconstitutionality of the statute under which the demanded relief was prayed, and further claimed that, if the city had been required to pay more than was paid, it would have been financially unable to have done the work or given employment to any of the workmen so employed by it.

On a hearing had before the commission it made findings and conclusions and ordered that the city, within twenty days, pay the workmen who performed labor in improving, building, and construction of roads within the limits of the city on June 27,1933, and subsequent thereto, the difference between the amounts paid to the workers and the amounts that should have been paid to each as provided by law and *134 as per the schedule of rates per hour for the various classified workers for each and every day so worked as enumerated in the order of the Industrial Commission fixing the general hourly rate of pay on public works. The rate of wages so fixed by the commission to be paid workers was 50 cents an hour for common labor, 75 cents for oil spreaders, 80 cents for teamsters with teams, and upwards for other classified labor to $1.50 an hour. The amount paid by the city for common labor was 3714 cents an hour working 8 hours a day, and $4 per day for teamsters with teams. The difference to be paid between the wage as fixed by the schedule of the commission and the amount which was paid by the city amounted to over $4,000. From such order and proceedings the city has prosecuted an appeal or review.

The statute, Laws of Utah 1933, c. 39, so far as material and drawn in question, are sections 1, 2, 4, 7, and 9. Section 1 provides:

“Not less than the general prevailing rate of wages per hour for work of a similar character in the locality in which the work is performed, and not less than the general prevailing rate of wages per hour for legal holiday and overtime work, shall be paid to all laborers, workmen and mechanics employed by or on behalf of the state of Utah, * * * city * * * engaged in the construction of public works, exclusive of maintenance work. Laborers, workmen and mechanics employed by contractors or subcontractors in the execution of any contract or contracts for public works with the state, * * * city * * * shall be deemed to be employed upon public works.”
Sec. 2: “The public body awarding any contract for public work on behalf of the state of Utah or * * * city * * * undertaking any public works, shall ascertain from the industrial commission of Utah the general prevailing rate of wages per hour for each type of craft or work needed to execute the said contract in the locality in which the work is to be performed,” etc.
Sec. 4.: “It shall be the duty of such public body awarding the contract, and its officers and agents, to take cognizance of complaints of all violations of the provisions of this act committed in the course of the execution of a contract. When in their opinion the provisions of this act have been violated it shall be the duty of the members of the said board to make a written report of such violation to the industrial commission of the state of Utah who shall, upon giving notice *135 to the said contractor, finally determine whether such violations have been committed and in the event that they so find, after proper hearing^ the said industrial commission shall make an order,” authorizing the said board to withhold and retain from the contract price a sum equal to the amount of the penalties assessed against the contractor;

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Bluebook (online)
38 P.2d 769, 85 Utah 131, 1934 Utah LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/logan-city-v-industrial-commission-utah-1934.