Operating Engineers Local Union No. 3 v. Hurley

546 F. Supp. 387, 30 Cont. Cas. Fed. 70,494, 25 Wage & Hour Cas. (BNA) 931, 1982 U.S. Dist. LEXIS 17480
CourtDistrict Court, D. Utah
DecidedAugust 26, 1982
DocketCiv. No. C 82-0707J
StatusPublished

This text of 546 F. Supp. 387 (Operating Engineers Local Union No. 3 v. Hurley) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Operating Engineers Local Union No. 3 v. Hurley, 546 F. Supp. 387, 30 Cont. Cas. Fed. 70,494, 25 Wage & Hour Cas. (BNA) 931, 1982 U.S. Dist. LEXIS 17480 (D. Utah 1982).

Opinion

MEMORANDUM OPINION and ORDER

JENKINS, District Judge.

In this action, the plaintiff union seeks injunctive relief pursuant to Rule 65 of the Federal Rules of Civil Procedure that would compel the defendant officials of the Utah Department of Transportation (UDOT), the Federal Highway Administration (FHA), and the United States Department of Transportation (USDOT) to modify the contract specifications for the 1-215 East freeway project1 to conform to the current General Prevailing Wage Determination for power equipment operators in Utah. The United States Department of Labor modified that prevailing wage level in a determination published in the August 6, 1982 issue of the Federal Register. See 47 Fed. Reg. 34292.

The bids for the project contracts, which had been solicited early in July, were opened on August 3, 1982. Asserting that the defendants were made aware of the forthcoming modification through the efforts of counsel for the union as soon as July 30, plaintiff argues that the defendants should have notified the bidders of the change, permitting them to amend their bids before the designated opening time of August 3 at 2:00 P.M., or some later time to be designated by the UDOT. Relying upon [389]*389a reading of the applicable federal regulations, the UDOT declined to contact the bidders or change the scheduled opening of bids.

The Davis-Bacon Act, 40 U.S.C. § 276a (1976), mandates that federal contracts such as these shall contain a provision setting the minimum wage for various classes of laborers and mechanics based upon a determination by the Secretary of Labor of the wages for similar work that are prevailing in the surrounding geographical area. These “prevailing wage determinations” are of two kinds: at a contracting agency’s request, the Secretary of Labor may issue a project determination which applies to work under a particular contract and which is promulgated by direct communication to the contracting agency. Where it appears that a significant number of government contracts will be performed in a specific geographical area, the Secretary may make a general wage determination applicable to projects in that area which is promulgated through publication in the Federal Register. 29 C.F.R. §§ 1.5-1.7(a) (1981); North Georgia Bldg. & Const. Trades v. Goldschmidt, 621 F.2d 697, 703 (5th Cir. 1980). In this case, we are dealing with a general prevailing wage determination, and a modification thereof. Unlike project determinations, which are of short duration, general determinations remain in force and are updated and kept current through published modifications. 29 C.F.R. § 1.7(a) (1981). Modifications which are issued before a contract is awarded generally apply to that contract,

but modifications published in the Federal Register later than 10 days before the opening of bids shall not be effective except when the Federal agency (in the case of Federal-Aid Highway Acts as codified in 23 U.S.C. 113, the State highway department of each State) finds that there is a reasonable time in which to notify bidders of the modification.

29 C.F.R. § 1.7(b)(2) (1981). The modification at issue in this case was published after the opening of bids — a time plainly less than 10 days before opening. The plaintiff union downplays the significance of the actual publication, emphasizing that the defendant officials knew on the 30th of July— the Friday before the Tuesday afternoon bid-opening — that the modification would most likely be made, and that the union had provided them with the updated wage schedules. Counsel urges that the defendants had “actual” notice of the modification, rendering its publication in the Federal Register merely “constructive” notice, a relatively immaterial event. Plaintiff argues that upon being informed that the modification was forthcoming, the UDOT should have formally determined whether there was reasonable time to notify bidders pursuant to 29 C.F.R. § 1.7(b)(2). Such a formal determination was requested. Informally, UDOT officials expressed serious concern about the time factor and about the effectiveness of the modification prior to its publication. Formally, however, no determination was made.

The union now contends that UDOT’s purported inaction on the question of notice to bidders was a violation of its duties under § 1.7(b)(2), leaving this Court free to make its own determination of timeliness. Should this Court find that notice would have been timely, plaintiff urges the retroactive modification of the contract via injunction.

Even setting aside any evidentiary controversy as to whether the wage figures provided to officials on July 30th were different from those published on August 6th, the union’s argument strays too far. While it is often true that actual notice of a federal regulation currently in force will suffice to bind a party in the absence of Federal Register publication, the question here seems not whether the defendants knew of the modification prior to its publication, but whether the modification came into jural existence, whether it had legal force, prior to August 6.

By its own terms, it did not.

The memorandum notice accompanying the modifications in the August 6th Federal Register expressly notes that general wage determinations, modifications and superse[390]*390deas decisions “are effective from their date of publication in the Federal Register without limitation as to time . . . . ” 47 Fed. Reg. 34292 (Aug. 6, 1982). The governing regulation, 29 C.F.R. § 1.7(b)(2) (1981), speaks of publication in the Federal Register as the operative event for applying the 10-day rule on notice to bidders.2 If the Labor Department had intended the result urged herein by the union, it seems logical that it would have repeated in § 1.7(b)(2) the language of § 1.7(b)(1), which speaks of “modifications received by the Federal agency” rather than “modifications published in the Federal Register” later than 10 days before the opening of bids.

Counsel would construe away any such distinction in the name of serving the broader purposes of the Davis-Bacon Act.3 Yet the distinction makes good administrative sense. When the Secretary of Labor makes a prevailing wage determination that is general to a designated geographic area, a determination that is not limited as to effective duration, publication in the Federal Register fixes a standard reference point in dealing with that action.4

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546 F. Supp. 387, 30 Cont. Cas. Fed. 70,494, 25 Wage & Hour Cas. (BNA) 931, 1982 U.S. Dist. LEXIS 17480, Counsel Stack Legal Research, https://law.counselstack.com/opinion/operating-engineers-local-union-no-3-v-hurley-utd-1982.