New York Independent Contractors Alliance v. Liu

49 Misc. 3d 478, 15 N.Y.S.3d 544
CourtNew York Supreme Court
DecidedDecember 19, 2014
StatusPublished

This text of 49 Misc. 3d 478 (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, 49 Misc. 3d 478, 15 N.Y.S.3d 544 (N.Y. Super. Ct. 2014).

Opinion

OPINION OF THE COURT

Lucy Billings, J.

Petitioners in these proceedings challenge the prevailing wage schedules that the New York City Comptroller set for roadbuilders and pavers employed in public works projects in the city during fiscal years 2011, 2012, and 2013. Since petitioners’ third, most recent petition incorporates the petitions and the supporting affidavits and exhibits in the two previous proceedings, this decision addresses all three petitions, but cites principally to the record in the third proceeding.

I, Background

A. The Prevailing Wage Laws

Contractors engaged in public projects are required to pay their workers “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.” (NY Const, art I, § 17.) In accordance with this constitutional mandate, public works contractors must pay their workers “not less than the prevailing rate ... 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 [3] [a]), and “supplements ... in accordance with the prevailing practices in the locality.” (Labor Law § 220 [3] [b]; see Matter of Lantry v State of New York, 6 NY3d 49, 54 [2005]; Matter of Chesterfield Assoc. v New York State Dept. of Labor, 4 NY3d 597, 599-600 [2005].) Re[481]*481spondent Comptroller is responsible for classifying work into a specified trade or occupation and determining its prevailing wage, set by the collective bargaining agreements of 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 [3-a] [a] [i]; [5] [a], [e]; Lantry v State of New York, 6 NY3d at 54-55; Matter of Metropolitan Movers Assn., Inc. v Liu, 95 AD3d 596, 599 [1st Dept 2012]; Matter of General Elec. Co. v New York State Dept. of Labor, 154 AD2d 117, 119 [3d Dept 1990], affd 76 NY2d 946 [1990].)

B. Undisputed Facts

The Comptroller initiated a reclassification of the previously separate classifications of asphalt pavers and concrete pavers into a single trade of paver and roadbuilder-laborer for fiscal year 2011, running from July 1, 2010 to June 30, 2011. Within the reclassified trade of paver and roadbuilder, the Comptroller designated two subclassifications, production paving and nonproduction/utility paving, and then set the prevailing wage for this classification and its two subclassifications using the collective bargaining agreement (CBA) between respondents Highway and Street Laborers Local Union 1010 and General Contractors Association of New York (GCA). The Comptroller readopted this new trade classification of paver and roadbuilder and prevailing wage schedule for this classification in fiscal years 2012 and 2013, effective from July 1 of the year through June 30 of the following year.

II. Petitioners’ Standing to Maintain Their Challenge

Petitioners may challenge respondent Comptroller’s trade classification (1) as violative of New York Constitution, article I, § 17, or Labor Law § 220 (5) (a)’s requirement that the prevailing wage be set according to the CBA of employers employing 30% of the employees in the trade or (2) as arbitrary, irrational, and without a factual basis. (CPLR 7803 [3].) Petitioners are a labor union, Local 175, United Plant and Production Workers, and New York Independent Contractors Alliance (NYICA), an association of employers employing Local 175 members, whose CBA the Comptroller did not use to set prevailing wages in fiscal years 2011, 2012, and 2013.

Petitioners challenge respondent Comptroller’s determination of the prevailing wages for the trade of roadbuilding and paving, which the Comptroller based on the CBA between respondent unions and the employer members of respondent [482]*482GCA. Petitioners contend that the Comptroller’s classification, which combined the previously separated trades of asphalt paving and concrete paving into a single trade of roadbuilding and paving, with subclassifications of production paving and utility paving, as not reflecting the different nature of paving work when using asphalt versus concrete. (Lantry v State of New York, 6 NY3d at 55.) Petitioners further claim that, if the work was not misclassified, the CBA of respondent unions and employers would not cover 30% of the workers, laborers, and mechanics in the asphalt paving trade, but petitioners’ CBA would.

Petitioner union and its members maintain an interest in nullifying the newly created paver and roadbuilder-laborer classification and reclassifying the affected workers because this new classification has placed workers performing asphalt paving for each NYICA contractor under a CBA with Local 175 at a substantial competitive disadvantage. NYICA members are injured because prevailing wages are set too low, causing these employers to lose public projects to other employers paying the lower prevailing wages than NYICA members, and causing their employees to lose these jobs as well.

Petitioners thus allege tangible injury and threat of injury from respondent Comptroller’s challenged actions. (New York State Assn. of Nurse Anesthetists v Novello, 2 NY3d 207, 214-215 [2004]; Matter of Troeller v New York City Dept. of Educ., 107 AD3d 507, 507 [1st Dept 2013]; Roberts v Health & Hosps. Corp., 87 AD3d 311, 319 [1st Dept 2011].) In reply to respondents’ answers raising petitioners’ lack of standing as a defense, moreover, petitioners pinpoint concrete examples of their members losing public work, illustrative of a cognizable harm due to respondent Comptroller’s new classification and prevailing wage determination. (E.g. Matter of Association for a Better Long Is., Inc. v New York State Dept. of Envtl. Conservation, 23 NY3d 1, 7-8 [2014]; Troeller v New York City Dept. of Educ., 107 AD3d at 507; Matter of New York Propane Gas Assn. v New York State Dept. of State, 17 AD3d 915, 917 [3d Dept 2005].)

In particular, NYICA member A.S.C. Contracting Corporation’s president attests that the new classification and prevailing wages disadvantaged A.S.C. Contracting in competing for public projects, because, if it hires petitioner Local 175’s workers, it must pay them higher wages under its CBA with Local 175 than other contractors who pay the Comptroller’s lower prevailing wages. These higher costs have caused A.S.C. [483]*483Contracting’s bid to lose projects at Public School (P.S.) 333Q, P.S. 48Q, P.S. 56R, and P.S. 135K. (Petitioners’ reply affs; aff of Charles Romano f 6.) If A.S.C. Contracting hires the predominant union members from respondent Local 1010, paying them only the prevailing wages, as A.S.C. Contracting did to work for a contractor affiliated with GCA on a P.S. 171M project, A.S.C. Contracting still incurs higher labor costs in paying double benefits to Local 1010 members as well as to Local 175 under its CBA. (Id. f 7.)

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Bluebook (online)
49 Misc. 3d 478, 15 N.Y.S.3d 544, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-independent-contractors-alliance-v-liu-nysupct-2014.