Purler-Cannon-Schulte, Inc. v. City of St. Charles

146 S.W.3d 31, 2004 Mo. App. LEXIS 1469, 2004 WL 2283194
Missouri Court of Appeals·Decided October 7, 2004·No. ED 83325·Published·Cited by 6 cases

Opinion

MARY R. RUSSELL, Judge.

Purler-Cannon-Schulte, Inc. and Kar-sten Equipment Company (“Contractors”) appeal from the trial court’s granting of summary judgment in favor of the City of St. Charles and the Missouri Department of Labor and Industrial Relations (“Department”). 1 Contractors assert that the trial court erred in that: (1) Department’s enforcement of the Prevailing Wage Act violates article X, section 21 of the Missouri Constitution (“the Hancock Amendment” 2 ); (2) Department’s application of the Occupational Title Rule to outdoor pipe projects violates the Prevailing Wage Act; and (3) Department’s interpretation of the General Laborer occupational title renders that provision void as applied because it results in key language being meaningless when it is applied only to work done on non-pressurized pipelines. We disagree with these assertions of error and affirm the trial court’s grant of summary judgment in favor of Department.

Contractors are in the business of installing outdoor utility pipes in St. Louis, St. Charles, Franklin, Jefferson, Lincoln, and Warren Counties (collectively “Counties”). Contractors’ work includes constructing and installing outdoor sewer *35 lines, water mains, and other pressurized pipelines, including those that can be classified as public works under section 290.210(7) RSMo 2000. 3 When Contractors engage in public works projects, they are bound by the requirements of Missouri’s Prevailing Wage Act. 4

Under the Prevailing Wage Act, Contractors are required to pay their workers “[n]ot less than the prevailing hourly rate of wages for work of a similar character in the locality in which the work is performed .... ” Section 290.230.1. Under the Act, the “ ‘[prevailing hourly rate of wages’ means the wages paid generally, in the locality in which the public works is being performed, to workmen engaged in work of a similar* character.... ” Section 290.210(5).

Department has statutory authority to promulgate administrative rules necessary to carry out the provisions of the Prevailing Wage Act. Section 290.240.2. In this capacity, Department enacted 8 CSR 30-3.060, known as the Occupational Title Rule, to describe and classify work of a similar character. This rule establishes occupational titles in order to aid Department in determining “the prevailing hourly rate of wages to be paid to each worker ... on a public works project, relative to the type of work performed....” 8 CSR 30-3.060 (description of purpose of the rule). “Each occupational title defines by name the type of work performed in the construction of a public works project.” 8 CSR 30-3.060(1). Occupational titles are based on the nature of the work performed and consider industry classifications of work definitions. 8 CSR 30-3.060(2).

Department determines “the prevailing hourly rate of wages in each locality for each separate occupational title” involved in public works projects, and then issues annual wage orders setting forth the prevailing annual wages for each occupational title in all areas of the state. Section 290.262; 8 CSR 30-3.010.

This case originated when Department charged Contractors with a violation of the Prevailing Wage Act in December 1998. Department cited Contractors for paying workers installing water and sewer piping systems on Contractors’ outdoor public works projects the Laborer wage rate, rather than the Pipe Fitter wage rate, on four specified pipe projects in St. Louis and St. Charles Counties. Department asserted that the work at issue fit the Pipe Fitter occupational title and should have been paid at the Pipe Fitter wage rate. 5 Department sought penalty payments, and Contractors brought suit for declaratory relief against Department. 6

Contractors assert that Department’s interpretation of the rules unlawfully applied the Pipe Fitter occupational title to non-mechanized activities involved in the installation of outdoor pipelines. Contractors argue that the Pipe Fitter occupational *36 title applies only to work joining pipes, and farther argue Missouri contractors have paid workers on outdoor pipe projects the General Laborer wage for non-mechanized work for over 35 years. They maintain that General Laborer wage rates have been the actual prevailing wages paid in Counties for over 40 years, and assert that Department has never before cited them for their historical practice of paying the General Laborer wage rate to workers on outdoor piping system projects.

Contractors further allege that Department’s application of the occupational title of Pipe Fitter to the work at issue unlawfully attempts to alter the actual marketplace wage by unilaterally declaring that the higher Pipe Fitter wage rate must now be paid on outdoor pipe projects. They state this application of the Prevailing Wage Act requires payment of wages not based on the actual prevailing wage in the locality and is a violation of the Hancock Amendment, the Prevailing Wage Act, and the language of the rule itself.

The circuit court concluded that Department’s application of the occupational title of Pipe Fitter was lawful, and it granted summary judgment in favor of Department. Contractors now appeal.

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Purler-Cannon-Schulte, Inc. v. City of St. Charles, 146 S.W.3d 31, 2004 Mo. App. LEXIS 1469, 2004 WL 2283194 (Mo. Ct. App. 2004).

146 S.W.3d 31 (Purler-Cannon-Schulte, Inc. v. City of St. Charles) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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