Salvatore Puglia v. Elk Pipeline, Inc.(075171)

141 A.3d 1187, 226 N.J. 258, 41 I.E.R. Cas. (BNA) 1042, 2016 N.J. LEXIS 855
CourtSupreme Court of New Jersey
DecidedAugust 16, 2016
DocketA-38-14
StatusPublished
Cited by19 cases

This text of 141 A.3d 1187 (Salvatore Puglia v. Elk Pipeline, Inc.(075171)) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Salvatore Puglia v. Elk Pipeline, Inc.(075171), 141 A.3d 1187, 226 N.J. 258, 41 I.E.R. Cas. (BNA) 1042, 2016 N.J. LEXIS 855 (N.J. 2016).

Opinion

Justice LaVECCHIA

delivered the opinion of the Court.

New Jersey has a significant body of statutory and decisional law protecting employee rights — protections that exist whether the employee is a union member or not. Among those are wage and hour and whistleblower protections. Facts that can give rise to a violation of those state-law protections can often (for union workers) also give rise to a claim based on a collective bargaining agreement (CBA) or under the National Labor Relations Act (NLRA). This appeal raises questions involving federal labor-law preemption and asks whether a state-law whistleblower retaliation claim premised on an employee’s complaints about wage and hour requirements is preempted based on that factual overlap.

Specifically, plaintiff Salvatore Puglia filed an action against his employer under New Jersey’s Conscientious Employee Protection Act (CEPA), N.J.S.A. 34:19-1 to -14, claiming that his employment was terminated after he complained about his employer’s failure to pay him in accord with the Prevailing Wage Act, N.J.S.A. 34:11-56.25 to -56.47. The trial court held that the NLRA and the Labor Management Relations Act (LMRA) both preempt *265 ed Puglia’s claims. The Appellate Division affirmed that judgment. We now reverse.

I.

A.

Puglia was a laborer for defendant Elk Pipeline, Inc. — an underground utility contractor and construction company — -from 2006 through 2010. 1 During his employment with Elk, Puglia was a union member, and a CBA governed the terms of his employment.

Puglia was working on a sewer reconstruction project for the City of Camden during the last year of his employment with Elk. Because the Camden project was a public works job, it was subject to the provisions of New Jersey’s Prevailing Wage Act. Unexpectedly for Puglia, in January 2010, Puglia’s wage rate was cut in half, and the new, lower wage reflected Puglia’s supposed placement in an apprenticeship program.

Other laborers also saw their wage rate reduced. When Puglia first discovered the drop in pay, he was with another laborer, Robert Barrette. The two men immediately brought up the issue with their supervisor, Eric Larsen, asking why their wages had been halved. According to Puglia, Larsen told them that they had been placed in a fake apprenticeship program and that they should talk to the project manager, Mike Tedeseo, about it. After Puglia approached him, Tedeseo repeated the apprenticeship explanation. According to Puglia, however, Tedeseo admitted that an apprenticeship program did not exist and that Elk never received approval for such a program.

*266 Puglia and other laborers on the job site talked about the wage cut, “trying to get to the bottom of everything.” Puglia continued to complain about his reduced wages, first almost daily to Larsen and eventually to Elk’s president, Thomas Mecouch. Mecouch adhered to the apprenticeship explanation, adding that “[the laborers] were in an apprenticeship program” and that he could pay only “[ninety] percent of the apprenticeship rate.” Puglia nonetheless continued to talk with Tedesco about the issue, and Tedesco referred him to Jim Takacs, the resident engineer on the project.

As the resident engineer on the project, Takacs’s duties included enforcing the Davis-Baeon Act, 40 U.S.C.A. §§ 3141-3148. Puglia spoke with Takacs in August, after which Takacs reviewed Elk’s payroll records and determined that several employees were not being paid the required wages. Takacs told Tedesco that Elk needed to resolve the issue and bring the laborers’ wages up to the prevailing rate. When Takacs raised the subject of Puglia’s pay specifically, Tedesco told him that Puglia was in an apprenticeship program. Takacs responded that there was no approved apprenticeship program in place at the Camden job. Tedesco allegedly replied, purportedly off the record, that “the owner wanted to [f* *k] with [Puglia] and wants to get rid of him.”

Tedesco then went to Mecouch and advised him that Elk could pay an apprenticeship rate only if it had a State-approved program. Elk soon resolved the payroll-rate problem, restoring the prevailing wage rate for the laborers and paying the affected employees back pay in September. But Puglia still protested, believing that he was not paid the full amount of back pay due to him. Puglia again approached Tedesco, who, according to Puglia, told him that Mecouch said that he had to “either be quiet and keep [his] job or be laid off.”

Puglia was laid off in December 2010. Puglia asserts that Darren Capano, the new site supervisor, approached him, told him that he was laid off, handed him a paycheck, and said to go “look *267 for a new job.” That was done, Puglia said, without further explanation.

Elk offers a different version of the termination of Puglia’s employment. As 2010 was ending, the Camden project was winding down. At that time, the project employed three laborers, and the remaining work required only two. Although the other two laborers had less seniority than Puglia, they had completed a training program and attained certifications — benchmarks that Puglia had not met. Those two other laborers were, according to Capano, “the two best laborers to do the work that needed to be done.” Moreover, Mecouch asserts that Puglia was not laid off but was instead told to report to another Elk job site, which he did not do.

B.

Puglia filed a four-count complaint in the Superior Court against Elk and Mecouch personally, alleging violations of the Prevailing Wage Act and CEPA and requesting equitable relief. The parties settled the Prevailing Wage Act claim and stipulated to its dismissal. Puglia’s remaining CEPA claim alleged that, by complaining about Elk’s failure to pay him the proper wages under the Prevailing Wage Act, Puglia engaged in a whistleblowing activity, for which he was later terminated. Elk filed a motion for summary judgment on the CEPA claim, arguing that Puglia’s CEPA claim was preempted by federal labor law on multiple bases. Before turning to the trial court’s decision in the first instance and the Appellate Division’s opinion on appeal, we provide some basic background on the two strands of federal preemption at issue.

1.

Section 301(a) of the LMRA is a grant of jurisdiction to the federal courts to hear disputes arising out of labor agreements. It states:

Suits for violation of contracts between an employer and a labor organization representing employees in an industry affecting commerce as defined in this Act, or between any such labor organizations, may be brought in any district court of *268 the United States having jurisdiction of the parties, without respect to the amount in controversy or without regard to the citizenship of the parties.
[29 U.S.C.A § 185(a).]

Besides creating federal jurisdiction for those suits, Section 301 has been given broad substantive effect.

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Bluebook (online)
141 A.3d 1187, 226 N.J. 258, 41 I.E.R. Cas. (BNA) 1042, 2016 N.J. LEXIS 855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salvatore-puglia-v-elk-pipeline-inc075171-nj-2016.