Majstrovic v. R. Maric Piping, Inc.

171 Misc. 2d 429, 3 Wage & Hour Cas.2d (BNA) 1352, 655 N.Y.S.2d 285, 1997 N.Y. Misc. LEXIS 22
CourtNew York Supreme Court
DecidedJanuary 31, 1997
StatusPublished
Cited by6 cases

This text of 171 Misc. 2d 429 (Majstrovic v. R. Maric Piping, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Majstrovic v. R. Maric Piping, Inc., 171 Misc. 2d 429, 3 Wage & Hour Cas.2d (BNA) 1352, 655 N.Y.S.2d 285, 1997 N.Y. Misc. LEXIS 22 (N.Y. Super. Ct. 1997).

Opinion

OPINION OF THE COURT

Gerald S. Held, J.

In this action for alleged unpaid wages, defendants move to dismiss plaintiffs’ complaint.

Plaintiffs commenced this action on or about July 12,1996 to recover prevailing wages and benefits which plaintiffs failed to receive for labor performed by them for their employer R. Marie Piping, Inc. (Marie) on certain public work projects (the Public Work Projects), pursuant to public work contracts (the Public Work Contracts) with the New York City Housing Authority (the NYCHA).

Plaintiffs worked as steam fitters on the Public Work Projects and were paid between $15 and $22 per hour. Plaintiffs contend that the prevailing rate of wages and benefits to be paid steam fitters on State and Federal Public Work Projects during the relevant time period was in excess of $40 per hour, as mandated by article 8 of the Labor Law. Plaintiffs thus allege that they were underpaid, and this lawsuit ensued.

Plaintiffs’ complaint sets forth five causes of action. The first cause alleges a violation of Labor Law § 220. The second cause [431]*431is for breach of contract. The third claim is for quantum meruit, for the reasonable value of the services. The fourth cause avers a willful failure to pay prevailing wages pursuant to Labor Law §§ 190, 198 and 198-c. The fifth and last cause of action is against defendant The Hartford Fire Insurance Company (Hartford) with respect to surety bonds that it issued concerning payment of wages.

Defendants first urge dismissal of the first, second, and fourth causes of action on the ground that the court lacks subject matter jurisdiction because the claims are within the exclusive purview of the Federal Davis-Bacon Act (40 USC § 276a et seq.). Defendants assert that the Public Work Contracts provide that they are Federally funded and that the Davis-Bacon Act wage rates, and not the provisions of the Labor Law, apply to these projects. According to defendants, since Federal law controls in this matter, plaintiffs’ claims must be dismissed.

The issue herein is not one of subject matter jurisdiction, but whether the plaintiffs have properly stated their claims under New York State law. The question is then whether the Davis-Bacon Act preempts State law on a housing project that is entirely Federally funded.

Dating back to 1931, the Federal Davis-Bacon Act is one of the oldest fair labor standards statutes in the country. It requires that contractors who are engaged in Federal construction projects pay their employees at wage rates not less than local "prevailing wages” as determined by the United States Department of Labor. About 40 States have statutes paralleling the Davis-Bacon Act, often referred to as "Little Davis-Bacon Acts” (Morowitz, Government Contracts, Social Legislation, and Prevailing Wages: Enforcing the Davis-Bacon Act, 9 In Pub Interest 29 [1989]).

The New York statute, analogous to the Davis-Bacon Act, is found in Labor Law § 220, requiring contractors to pay employees the prevailing wages of the industry in the locality. Although the two laws, Federal and State, focus on the prevailing wage in the locality, the method of computation is different in ways that tend to result in State-determined wage rates that are higher than the Davis-Bacon rates (see, discussion in 53 Fed Reg 30206, 30208).

24 CFR 965.101 states, in pertinent part, as follows:

" 965.101 Preemption of State prevailing wage requirements.
"(a) A prevailing wage rate (including basic hourly rate and any fringe benefits) determined under State law shall be inap[432]*432plicable to a contract or PHA [Public Housing Agency]performed work item for the development, maintenance, and modernization of a project whenever:
"(1) The contract or work item: (i) Is otherwise subject to State law requiring the payment of wage rates determined by a State or local government or agency to be prevailing and (ii) is assisted with funds for low-income public housing under the U.S. Housing Act of 1937, as amended; and
"(2) The wage rate determined under State law to be prevailing with respect to an employee in any trade or position employed in the development, maintenance, and modernization of a project exceeds whichever of the following Federal wage rates is applicable:
"(i) The wage rate determined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a et seq.) to be prevailing in the locality with respect to such trade”.

Three of the six contracts at issue in the present case contain language that mirrors the aforementioned Federal regulation.1 Even as to those contracts that do not contain such a provision, the Federal regulation quoted above would govern the Federally funded project, since the Supreme Court of the United States, in Hillsborough County v Automated Med. Labs. (471 US 707, 713), held that a State law can be preempted by a Federal regulation.

In one Federal case on the issue, the court in FHM Constructors v Village of Canton Hous. Auth. (1993 WL 23587 [ND NY, Feb. 2, 1993, McCurn, Ch. J.]) concluded that the Davis-Bacon Act preempts State prevailing wage rate schedules for purposes of Federally funded housing projects. The reasoning of Chief Judge McCurn in FHM Constructors is persuasive.

In opposing the motion to dismiss, plaintiffs rely on Matter of Tap Elec. Contr. Serv. v Hartnett (76 NY2d 164 [1990]), where the Court of Appeals held that Federal regulations do not preempt Labor Law § 220 under a highway project jointly [433]*433funded by the State and Federal Governments. That case is distinguishable for several reasons. First, it did not deal with the issue of wages, which is the central focus of the Davis-Bacon Act. Indeed, the Court of Appeals said that section 220 "does not interfere with * * * the Davis-Bacon Act * * * because it does not purport to raise the minimum wage paid to Federal trainees” (Matter of Tap Elec. Contr. Serv. v Hartnett, supra, 76 NY2d, at 170). Second, the Federal regulation involved in Tap Elec, did not expressly require preemption (supra, at 169).

Since five of the six contracts at issue in the case at bar are fully funded by the Federal Government, State law is inapplicable under the hereinbefore-quoted regulation by express preemption. Only one of the subject contracts — the Linden House project — was not Federally funded, and as to that contract, defendants maintain that the two plaintiffs did not work on the Linden House project. Defendants’ contention is unrebutted.

Accordingly, the first, second, and fourth causes of action are dismissed in their entirety.

The third cause of action of the complaint seeks recovery from defendant Marie of $200,000, on a theory of quantum meruit, for the reasonable value of plaintiffs’ services and work. The defendants seek to dismiss this cause of action on the theory that the statute protecting an employee’s right to prevailing wages does not confer a private right of action.

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Bluebook (online)
171 Misc. 2d 429, 3 Wage & Hour Cas.2d (BNA) 1352, 655 N.Y.S.2d 285, 1997 N.Y. Misc. LEXIS 22, Counsel Stack Legal Research, https://law.counselstack.com/opinion/majstrovic-v-r-maric-piping-inc-nysupct-1997.