New York Independent Contractors Alliance v. Liu

43 Misc. 3d 443, 981 N.Y.S.2d 246
CourtNew York Supreme Court
DecidedJuly 18, 2013
StatusPublished

This text of 43 Misc. 3d 443 (New York Independent Contractors Alliance v. Liu) 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
New York Independent Contractors Alliance v. Liu, 43 Misc. 3d 443, 981 N.Y.S.2d 246 (N.Y. Super. Ct. 2013).

Opinion

OPINION OF THE COURT

Lucy Billings, J.

Respondent Comptroller of the City of New York and two respondent labor unions have moved to dismiss these two proceedings that challenge the prevailing wage schedules the Comptroller set for roadbuilders and pavers employed in public works projects in the City during fiscal years 2011 and 2012. Since the second, more recent petition incorporates the petition and supporting affidavits and exhibits in the first proceeding, the court cites principally to the record in the second proceeding.

I. The Prevailing Wage Laws

New York Constitution, article I, § 17 requires contractors engaged in public projects to pay their workers, at minimum, “the rate of wages prevailing in the same trade or occupation in the locality within the state where such public work is to be situated, erected or used.” Labor Law § 220, which implements this constitutional mandate, similarly requires public works contractors to pay their workers (1) “not less than the prevailing rate ... in the same trade or occupation in the locality [446]*446within the state where such public work . . . is to be situated, erected or used” (Labor Law § 220 [3] [a]), and (2) “supplements ... in accordance with the prevailing practices in the locality.” (Labor Law § 220 [3] [b]; Matter of Chesterfield Assoc. v New York State Dept. of Labor, 4 NY3d 597, 599-600 [2005]; see Matter of Lantry v State of New York, 6 NY3d 49, 54 [2005].) Labor Law § 220 (5) (e) designates respondent Comptroller the fiscal officer responsible for determining the prevailing wages for trades and occupations in the City, who bears the duty “to make a proper classification” of work into a trade or occupation. (Labor Law § 220 [3-a] [a] [i]; Matter of General Elec. Co. v New York State Dept. of Labor, 154 AD2d 117, 120 [3d Dept 1990], affd 76 NY2d 946 [1990]; see Labor Law § 220 [3], [5] [e]; Lantry v State of New York, 6 NY3d at 54 n 5; Ramos v SimplexGrinnell LP, 796 F Supp 2d 346, 364 [ED NY 2011].)

Consequently, before setting the prevailing wages for a trade or an occupation, the Comptroller classifies work into a specified trade or occupation. The Comptroller’s classifications for fiscal year 2011, which the Comptroller continued in fiscal year 2012, lie at the heart of the controversy in these proceedings. Having classified work into a trade or occupation, the Comptroller then sets the prevailing wages for that work using the wages set by collective bargaining agreements (CBAs) between labor unions and employers employing at least 30% “of workers, laborers or mechanics in the same trade or occupation” in the City. (Labor Law § 220 [5] [a]; see Lantry v State of New York, 6 NY3d at 54-55; Matter of General Elec. Co. v New York State Dept. of Labor, 154 AD2d at 119; Matter of Metropolitan Movers Assn., Inc. v Liu, 95 AD3d 596, 599 [1st Dept 2012]; Matter of New York Tel. Co. v New York State Dept. of Labor, 272 AD2d 741, 744 [3d Dept 2000].)

II. Dismissal Based on Petitioners’ Lack of Standing

Respondents move to dismiss both proceedings on the grounds that petitioners lack standing to maintain their challenge to the Comptroller’s classification of work and his prevailing wages based on that classification. (CPLR 3211 [a] [7]; 7804 [f]; see CPLR 3211 [a] [3].) Petitioners are a labor union, Local 175, United Plant and Production Workers, and an association of employers employing that union’s members, whose CBA the Comptroller no longer used to set prevailing wages in fiscal years 2011 and 2012. If the employers’ association, its member employers, the union, and its member employees all lack stand[447]*447ing here, the Comptroller’s classification of work and his prevailing wages based on that classification are insulated from judicial review. (Saratoga County Chamber of Commerce v Pataki, 100 NY2d 801, 812 [2003]; Matter of Sun-Brite Car Wash v Board of Zoning & Appeals of Town of N. Hempstead, 69 NY2d 406, 413 [1987].)

A. Labor Law § 220 (6)

First, respondents rely on Labor Law § 220 (6), which provides that employers “may contest a determination by the fiscal officer” setting prevailing wages based on a CBA between a union and an employer. Although this provision applies only to employers, it does not limit the right to contest a determination to an employer whose CBA the Comptroller is using as the basis for prevailing wages, as opposed to employers, like petitioner New York Independent Contractors Alliance’s members, whose CBA the Comptroller is not using. The only mandatory limitation is on how an employer may contest the determination successfully. “The employer must allege and prove by competent evidence, that the actual percentage of workers, laborers or mechanics” covered by the CBA being used “is below the required thirty per centum” (Labor Law § 220 [6]), “in the same trade or occupation” in the City. (Labor Law § 220 [5] [a]; see New York Tel. Co. v New York State Dept. of Labor, 272 AD2d at 744; Matter of Liquid Asphalt Distribs. Assn. v Roberts, 116 AD2d 295, 298 [3d Dept 1986].)

Here, petitioner New York Independent Contractors Alliance (NYICA) contests respondent Comptroller’s determination of the prevailing wages for a trade, which the Comptroller based on the CBA between respondent unions and the employer members of respondent General Contractors Association of New York (GCA), an association of employers employing respondent unions’ members. NYICA claims that these respondents’ CBA does not cover 30% of the workers, laborers, and mechanics in the asphalt paving trade. NYICA further claims that the asphalt paving work of NYICA’s members and the union with whom NYICA has bargained was misclassified into another trade or occupation, but that, if the work were not misclassified, their CBA and not the CBA between GCA and respondent unions would cover at least 30% of the actual trade: asphalt paving.

Labor Law § 220 (6) does not prohibit that claim. That claim either is integral to contesting the determination of the prevailing wages for a trade or occupation pursuant to Labor Law § 220 (6) or is outside the scope of that statute, which nowhere [448]*448prohibits an employer from contesting the fiscal officer’s classification of work as factually unfounded, irrational, arbitrary, or biased as petitioners maintain here. (CPLR 7803 [3]; Matter of Action Elec. Contrs. Co. v Goldin, 64 NY2d 213, 223 [1984]; Matter of Pell v Board of Educ. of Union Free School Dist. No. 1 of Towns of Scarsdale & Mamaroneck, Westchester County, 34 NY2d 222, 231 [1974]; Metropolitan Movers Assn., Inc. v Liu, 95 AD3d at 598-599; Matter of Soho Alliance v New York State Liq. Auth., 32 AD3d 363 [1st Dept 2006]; see Goodwin v Perales, 88 NY2d 383, 392 [1996].) In sum, Labor Law § 220 (6) does not exclude other means or grounds for contesting the Comptroller’s determinations.

Finally, assuming petitioner NYICA is limited to proceeding according to Labor Law § 220 (6), respondents insist that the statute is limited to employers and therefore excludes an employers’ association like NYICA. Respondents rely on a sole question posed by the General Building Contractors to New York State Senator Joseph Pisani leading up to section 220’s amendments in 1983: “You give employers the right to challenge. How about employer organizations also?” (Aff of Jane E. Andersen, Dec.

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

Related

Air Line Pilots Ass'n v. O'Neill
499 U.S. 65 (Supreme Court, 1991)
Lujan v. Defenders of Wildlife
504 U.S. 555 (Supreme Court, 1992)
Marquez v. Screen Actors Guild, Inc.
525 U.S. 33 (Supreme Court, 1998)
Goshen v. Mutual Life Insurance
774 N.E.2d 1190 (New York Court of Appeals, 2002)
Chesterfield Associates v. New York State Department of Labor
830 N.E.2d 287 (New York Court of Appeals, 2005)
General Motors Corporation—Delco Products Division v. Rosa
624 N.E.2d 142 (New York Court of Appeals, 1993)
Goodwin v. Perales
669 N.E.2d 234 (New York Court of Appeals, 1996)
Leon v. Martinez
638 N.E.2d 511 (New York Court of Appeals, 1994)
New York State Ass'n of Nurse Anesthetists v. Novello
810 N.E.2d 405 (New York Court of Appeals, 2004)
Ramos v. SIMPLEXGRINNELL LP
796 F. Supp. 2d 346 (E.D. New York, 2011)
Saratoga County Chamber of Commerce, Inc. v. Pataki
798 N.E.2d 1047 (New York Court of Appeals, 2003)
Corning Glass Works v. Ovsanik
644 N.E.2d 1327 (New York Court of Appeals, 1994)
Transactive Corp. v. New York State Department of Social Services
706 N.E.2d 1180 (New York Court of Appeals, 1998)
511 West 232nd Owners Corp. v. Jennifer Realty Co.
773 N.E.2d 496 (New York Court of Appeals, 2002)
Rudder v. Pataki
711 N.E.2d 978 (New York Court of Appeals, 1999)
Aeneas McDonald Police Benevolent Ass'n v. City of Geneva
703 N.E.2d 745 (New York Court of Appeals, 1998)
Beer Garden, Inc. v. New York State Liquor Authority
79 N.Y.2d 266 (New York Court of Appeals, 1992)
Action Electrical Contractors Co. v. Goldin
474 N.E.2d 601 (New York Court of Appeals, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
43 Misc. 3d 443, 981 N.Y.S.2d 246, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-independent-contractors-alliance-v-liu-nysupct-2013.