Tenalp Construction Corp. v. Roberts

141 A.D.2d 81, 532 N.Y.S.2d 801, 29 Wage & Hour Cas. (BNA) 222, 1988 N.Y. App. Div. LEXIS 9316
CourtAppellate Division of the Supreme Court of the State of New York
DecidedSeptember 26, 1988
StatusPublished
Cited by11 cases

This text of 141 A.D.2d 81 (Tenalp Construction Corp. v. Roberts) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tenalp Construction Corp. v. Roberts, 141 A.D.2d 81, 532 N.Y.S.2d 801, 29 Wage & Hour Cas. (BNA) 222, 1988 N.Y. App. Div. LEXIS 9316 (N.Y. Ct. App. 1988).

Opinion

OPINION OF THE COURT

Balletta, J.

This proceeding raises a question of first impression of whether the New York State Commissioner of Labor may require a contractor on a public work project to pay an employee who is performing both supervisory and nonsupervisory duties the prevailing wage rate under Labor Law § 220 for that portion of the employee’s time that he was doing nonsupervisory work. We now answer that question in the affirmative.

On May 1, 1984, the Sachem Central School District, Holbrook, Suffolk County, entered into a public work contract with the petitioner Tenalp Construction Corp. (hereinafter Tenalp) for the construction of an addition to Sachem High School South. Tenalp hired Steven Sauter to act as a superintendent/carpenter on the contract. Sauter, who had previous experience as a carpenter but not as a supervisor, worked for Tenalp for the duration of the project, i.e., from May 11, 1984, until December 26, 1984, and was paid approximately $550 per week. Tenalp did not keep any breakdown of Sauter’s hours according to classification of work performed.

As part of his job, Sauter staked out the addition (i.e., placed stakes in the ground to approximate the work area), worked with an excavator to keep the work area dry, unloaded and removed roof trusses, performed alterations to the building frame by installing reinforcements around the top plate of the walls, installed roof trusses and braced and nailed them, roofed the corridor connecting the addition to the main school building, put up siding, rebuilt window framing not built to specifications by a subcontractor, caulked windows, and installed doors, door frames, door and classroom hardware and fixtures and wall paneling.

At the same time, Sauter supervised Tenalp’s other employ[83]*83ees who performed the same work he did. The other employees numbered no more than 10 (including carpenters and laborers) at any one time. As the project neared completion, Tenalp employees did not work as often, and, although Sauter occasionally had 1 or 2 men to supervise, he often worked alone on Tenalp’s behalf. During the entire period, Sauter gave out work assignments to the men, but did not keep track of the hours or days they worked; he was responsible for only his own time sheet. While he often checked on the work of others, he did not spend time "walking from one end of the building to another looking at people” since he "was told to do other work”.

In addition, Sauter was the designated liaison between Tenalp, its subcontractors, and school district personnel, which entailed discussing scheduling with the subcontractors and any other problems encountered with Tenalp’s president, Alvin Levine. He was also Tenalp’s "on-site person” at the project, and had to attend "job meetings”, which were held more frequently at the beginning of the project and less toward the end, to keep track of what was being done and what had yet to be done.

In January 1985 Sauter filed a claim for wage and supplement underpayments with the New York State Department of Labor (hereinafter the DOL), claiming that he had not been paid at the prevailing rate of wages for his duties as a carpenter. As a contractor on a public works project, under Labor Law § 220 Tenalp was required to pay its workers according to the prevailing wage schedule for the school project under Labor Law § 220. Sauter’s claim was investigated by the DOL, and a hearing was held on May 13 and 14, 1986, before Eugene P. Myers, Assistant Commissioner of Labor, in accordance with Labor Law § 220 (3-c) (2).

Assistant Commissioner Myers issued a report adopted in all respects by the New York State Commissioner of Labor in an order and determination dated October 23, 1986. The Commissioner determined that Tenalp had willfully underpaid Sauter a total of $5,734.50 for the work he had performed on the Sachem project. Tenalp was thereupon ordered to pay this amount to Sauter, plus interest. A civil penalty of $900 was also imposed. The Commissioner also determined that Sauter had spent 60% of his time doing carpentry work and 40% of his time supervising.

Tenalp commenced this proceeding in this court under [84]*84Labor Law § 220 (8), claiming (1) that Sauter is exempt from the prevailing wage law, and (2) that the Commissioner’s findings are not supported by the substantial evidence.

The New York State Constitution provides that no laborer, workman or mechanic in the employ of a contractor or subcontractor in the performance of public work may be paid less than the rate of wages prevailing in the same trade or occupation in the locality within the State where the public work is to be situated, erected or used (NY Const, art I, § 17). This constitutional imperative is reflected in Labor Law § 220 (3), which provides that "[t]he wages to be paid for a legal day’s work * * * to laborers, workmen or mechanics upon such public works, shall be not less than the prevailing rate of wages” and that all contracts for public works "shall contain a provision that each laborer, workman or mechanic, employed by such contractor, subcontractor or other person about or upon such public work, shall be paid the wages herein provided”.

The statutory requirement that workers on public works projects be paid at the prevailing rate finds its origins in Laws of 1894 (ch 622), which was subsequently reenacted as section 3 of the former Labor Law of 1897 (L 1897, ch 415) and the Labor Law of 1909 (L 1909, ch 36). In the 1921 revision of the Labor Law, the substance of section 3 of the former Labor Law became Labor Law § 220 (3) (L 1921, ch 50). The statute was intended for the direct benefit of laborers on public projects (Fata v Healy Co., 289 NY 401, 405), in order to insure that they receive an adequate wage (Brang Co. v State Univ. Constr. Fund, 47 AD2d 178). "Doubtless the Legislature in enacting and in amending section 220 of the Labor Law, had in mind, primarily and insistently, the need of providing protection against possible injustice on the part of the contractors in their dealing with their laborers, workmen and mechanics. That appears clearly from the language of the section and all its subdivisions” (Matter of Gaston v Taylor, 274 NY 359, 364). Moreover, the statute is to be liberally construed in order to carry out its beneficial purposes (Bucci v Village of Port Chester, 22 NY2d 195). "The present statute is an attempt by the State to hold its territorial subdivisions to a standard of social justice in their dealings with laborers, workmen and mechanics. It is to be interpreted with the degree of liberality essential to the attainment of the end in view” (Austin v City of New York, 258 NY 113, 117). The [85]*85protection of the wage rate is a legitimate State concern (Meaott Constr. Corp. v Ross, 76 AD2d 137, 140).

Tenalp contends herein that the law is unclear as to whether the prevailing wage rate must be paid to a person such as Sauter who performs different types of duties (i.e., supervisory and nonsupervisory) at the same time. It argues that under Federal statutes such as the Fair Labor Standards Act of 1938 (29 USC § 213 et seq.), Sauter’s activities would be considered exempt from the wage requirements and that, by analogy, Sauter should be exempt from the requirements of Labor Law § 220. This argument must be rejected.

Under Labor Law § 220, when a company is working on a public project (such as the Sachem School addition herein), it must pay its workers and laborers the prevailing wage rate.

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Bluebook (online)
141 A.D.2d 81, 532 N.Y.S.2d 801, 29 Wage & Hour Cas. (BNA) 222, 1988 N.Y. App. Div. LEXIS 9316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tenalp-construction-corp-v-roberts-nyappdiv-1988.