Mistick PBT v. Chao, Elaine

440 F.3d 503, 370 U.S. App. D.C. 181, 11 Wage & Hour Cas.2d (BNA) 481, 2006 U.S. App. LEXIS 6599, 2006 WL 664200
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 17, 2006
Docket04-5340
StatusPublished
Cited by14 cases

This text of 440 F.3d 503 (Mistick PBT v. Chao, Elaine) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mistick PBT v. Chao, Elaine, 440 F.3d 503, 370 U.S. App. D.C. 181, 11 Wage & Hour Cas.2d (BNA) 481, 2006 U.S. App. LEXIS 6599, 2006 WL 664200 (D.C. Cir. 2006).

Opinion

Opinion for the Court filed by Circuit Judge GRIFFITH.

GRIFFITH, Circuit Judge.

Under the Davis-Baeon Act, 40 U.S.C. § 3141, et seq., bidders on certain construction projects funded by the federal government must pay workers specified wage rates based upon the type of work performed. See 40 U.S.C. § 3142. The Department of Labor (the “Department” or “Secretary”) determines the categories of jobs and the prevailing wage rates for those jobs in the community where the construction project will be undertaken. See 29 C.F.R. §§ 1.1 — 1.9. This case involves the Department’s conformance regulations, 29 C.F.R. § 5.5(a)(l)(ii)(A), which explain how the Secretary determines the wages for a type of job that is left out of the Department’s pre-bid wage decision, but that a contractor subsequently requires for the project. Such omissions are not uncommon.

After it had been awarded a federal contract, appellant Mistick PBT (“Mistick”) proposed several types of jobs and accompanying minimum rates of pay that were left out of the Secretary’s prebid determination. Mistick argues the Department acted in an arbitrary and capricious manner by refusing to evaluate Mistick’s proposed wage rates in light of several previously approved types of jobs and accompanying wage rates. The District Court agreed with the Department that because the conformance process results in a wage rate, and because the Supreme Court held in United States v. Binghamton, 347 U.S. 171, 176-78, 74 S.Ct. 438, 98 L.Ed. 594 (1954), that the courts have no jurisdiction to review whether the Secretary’s wage determination correctly represents the “wages ... prevailing,” 40 U.S.C. § 3142(b), in a locality, the Department’s application of the conformance regulations is insulated from judicial review. We disagree with this conclusion. In accordance with our prior decision in Ball, Ball & Brosamer, Inc. v. Reich, 24 F.3d 1447, 1451 (D.C.Cir.1994), we conclude that the Davis-Baeon Act does not provide clear and convincing evidence that Congress sought to preclude review under the Administrative Procedure Act (“APA”), 5 U.S.C. § 701, et seq., of violations of Department regulations. We hold, however, that the Department did not apply its conformance regulations here in an arbitrary and capricious fashion.

I.

Mistick won a bid to be general contractor for Crawford Square Rental Phase III (“Crawford Square”), a residential construction project in Allegheny County, Pennsylvania, which was administered by the Urban Redevelopment Authority of' Pittsburgh (the “Authority”). Because the project received federal funding and was subject to the Davis-Baeon Act, the Secretary conducted a survey of prevailing wages for similar projects in Allegheny County and issued a wage determination in July 1996 (the “1996 Wage Determination”), which applied to Crawford Square.

Mistick needed to employ seven types of workers not addressed by the 1996 Wage Determination: operators of backhoes, bobcats, excavators, hi-lifts, rollers, graders, and pavers. Mistick requested that the Authority conform these seven types of jobs to classifications found in an earlier wage determination, which was based upon a November 1992 wage survey (the “1992 Wage Determination”). The Authority rejected Mistick’s request and concluded that (1) the bobcat classification should be conformed to the wage rates paid to a drywall finisher ($9.75) because the work *506 required of a bobcat operator is “not comparable to the power equipment classifications;” and (2) Mistick’s other requested classifications should be conformed to the wage rates paid to bulldozer operators ($21.87) because each involved the operation of power equipment. Mistick objected, contending that the power equipment operator classifications in the 1996 Wage Determination used by the Secretary were inapplicable here because they addressed equipment needed on a “heavy” commercial land development project and Crawford Square was a “residential” development.

Pursuant to 29 C.F.R. § 5.5(a)(l)(ii)(C), the dispute was submitted to the Department of Labor’s Administrator of the Wage and Hour Division of the Employment Standards Administration (the “Administrator”). Mistick requested that two positions — bobcat and roller operators — be conformed to the wage rates paid to drywall finishers ($9.75) and that the other five positions be conformed to the wage rates paid to ornamental ironworkers ($13.36). A section chief rejected Mistick’s proposal without stating reasons and approved the Authority’s determination; consequently, bobcat operators were assigned a wage rate of $9.75 and the other six positions were assigned a wage rate of $21.87. Mistick appealed to the Administrator. Mistick agreed that the bobcat operator position was properly conformed to the wage rate paid to drywall finishers, but objected to conforming the remaining six classifications to the much higher wage rate paid to a bulldozer operator. These six classifications, Mistick contended, all involved operating “light machinery much closer in nature to a bobcat [which had been conformed to the lower-wage drywall finisher position] than a heavy/highway bulldozer.” At most, Mistick argued that these classifications involved the skill of a drywall finisher or an ornamental iron-worker.

The Administrator declined to conform the six remaining new classifications to the drywall finisher or ornamental ironworker positions. Instead, the Administrator conformed these positions to the bulldozer classification, citing one of the agency’s past decisions, Tower Construction, No. 94-17, 1995 WL 90010 (Dep’t of Labor, Wage Appeals Bd. Feb. 28, 1995), for the proposition that the Administrator will not conform power equipment operator positions to non-power equipment operator classifications. The Administrator noted that it made no change to the bobcat classification only because Mistick did not take issue with that conformance. Pursuant to 29 C.F.R. § 7.1(b), Mistick appealed to the Administrative Review Board (the “Board”). Mistick argued to the Board that if the Administrator was going to follow Tower Construction, it would be more reasonable to conform the six new equipment operator positions to the conformed bobcat operator classification and not the more highly skilled bulldozer classification. Mistick also argued that Tower Construction

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
440 F.3d 503, 370 U.S. App. D.C. 181, 11 Wage & Hour Cas.2d (BNA) 481, 2006 U.S. App. LEXIS 6599, 2006 WL 664200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mistick-pbt-v-chao-elaine-cadc-2006.