Untitled Texas Attorney General Opinion

The Attorne,y General of Texas March 31, 1986 JIM MATTOX Attorney General Supreme C~NI Building Honorable George I'ierce Opinion No. .x+463 P. 0. BOX 12548 Chairman Austin. TX. 7871% 2548 512/475-2501 Committee on Urbar.Affairs Re: Whether an ordinance of the Telex 9101874-1367 Texas House of Rel'resentatives city of San Antonio, which requires Telecopier 512l475.0286 P. 0. Box 2910 apprentices and/or trainees in city Austin, Texas 7E769 projects to be enrolled in a pro- 714 Jackson, Suite 700 gram registered with the United Dallas. TX. 752024506 States Department of Labor, is vio- 21~7428~44 lative of state right-to-work laws Dear Representatix,ePierce: 4824 Alberta Ave., Suite 160 El Paso. TX. 798042793 915453334B4 You ask whet'xr a'San Antonio ordinance, which requires appren- tices on city proiects to be enrolled in-an apprentice program regis- - tered with the lJmi.tedStates Department of Labor, violates Texas' 91 Texas, Suite 700 "right-to-work" 1~s. See V.T.C.S. art. 5207a. Section 2 of article ,“ston. TX. 77002-3111 5207a. commonly known ashe "right-to-work" law, provides that "[nlo 713l2255eaS person shall be clenied employment on account of membership or non- membership in a lebor union." You state that 808 Broadway, Suite 312 Lubbock. TX. 79401-3479 tslince apprentice programs now in operation in 5081747-5238 Bexar Ccunty are operated by unions, and are open only to union members, workers seem to be pre- 4309 N. Tenth, Suite B cluded from participation in these programs unless f&Allen, TX. 78501-1885 they become union members. 512l582-4547 As will be shown :Lnthe discussion to follow, however, the registered 200 Main Plaza, Suite 400 apprentice programa required under the San Antonio ordinance are not San Antonio, TX. 78205.2797 limited to union Trograms. 5121225-4191 The ordinance in question provides, in part, as follows: An Equal OpportunItyI AffIrmaWe Action Employer p. 2120 Eonorable George Pierce - Page 2 (JM-463) employment as an a-Fprenticein such an apprentice- ship program; wht;is not individually registered in the program, tit who has been certified by the Bureau of Appren~lceship & Training or a State Apprenticeship A@ncy (where appropriate) to be eligible for probationary employment as an appren- tice. The all&able ratio of apprentices to joutaeymen in any craft classification shall not be greater thar. the ratio permitted to the contractor/subcont.ractoras to his entire work force under the registered program. . . . The wage rate paid ay'prenticesshall be not less than the specified ra1:e la the registered program for the apprentice's level of progress expressed as the appropriate percentage of the journeyman's rate contained in the applicable wage determina- tion decision. (Emphasis added). General Conditions of San Antonio Ordinance 515.a. No. 60110 (Jan. 17, 1985). The underscored language in the portion of the ordinance which is quoted above tracks the 1anSuage in the federal regulations governing apprentice programs. See 29 C.P.R. 55.5(a)(4)(1) (1985). Consequently, an explanation of thErig:Ln, operation, and purpose of federally- approved apprentice prograns for public works projects will illuminate the reasons for the adoption of the requirement in question and must precede our response to your specific question. Registered apprentice programs are part of the federal regulatory scheme requiring prevailing wages and minimum working conditions on contracts for the construction, repair, or improvement of public buildings or works which receive or expect to receive federal financial assistance. See 29 C.F.R. 15.1 (19851, et seq.; see generally North Georgia xzlding and Construction Trades Councils Goldschmidt, 621 F.2d 697 (5th Cir. 1980). The regulations coordinate the administration and enftxcement of the labor standards provisions of numerous federal acts w!xlchauthorize federal financial assistance for a variety of state and l.ocalprojects. See S5.1. The main labor legislation incorporated in these acts and forming the basis for the regulations is the Davis-Bacon Act, 40 U.S.C. 5276a (1982). et seq. This act requires the payment of wages on certain public contracts which are at least equivalent to those which prevail in the locality for the same classification of work on similar projects. Sec. 276a(a). The act protect;3 the employees of government contractors from substandard wages a,nd ensures that local workers are not precluded from work on gove,rnmentprojects by the importation of cheap labor from distant sources. Tennessee Roadbuilders Assn. v. Marshall, 446 F.Supp. 399, 401 (MD. Yean. 1977); -See United States v. Binghamton p. 2121 Honorable George Pierce - Eage 3 (~~-463) Construction Company, Inc., 347 U.S. 171 (1954); North Georgia Building and Construction 'Fades Council v. Goldschmidt, 621 F.2d 697 (5th Cir. 1980). Approved apprentice programs involve the payment, under certain conditions, of wages which sre less than the prevailing wage and which are stated as a percentage of the prevailing journeyman wage. See 29 C.F.R. $5.5(a)(4). The secretary of labor is charged by stat= to formulate and promote labor standards necessary to safeguard the welfare of apprentices. --- !k!e 29 U.S.C. 1150, 50a (1982). The idea behind apprentice prograna is that the apprentice will receive training in return for h:Ls work at lower than minimum prevailing wages. See 29 U.S.C. 521'4 (1982). The main focus of the approved programslimits the allowable ratio of apprentices to journeymen on the job site in each craft ~classification. See 29 C.F.R. 95.5(a)(4): In re Repp 8 Mundt, Inc. and Goedde Plumbi~k Heating Co.,. Idc:; U.S. Dept. of Labor Wage AEpeals Board Case No. 80-11 (1984). This focus serves a number of purposes. The limit on the number of apprentices assures that the apprentice actually receives the training contemplated by t1.eprogram, i.e., from observing and working under a variety of qualif:ladjourneymen in the work classification. See id. The ratio also assures that the overall quality of the public -- project will not suffer bec,auseof a lack of qualified journeymen. In re Repp 8 Mundt, Inc., at 9 (n. 3). Moreover, because certain wax performed by apprentices artybe inherently dangerous, incompetence or inadequate supervision of one employee can endanger the health, safety, and lives of others. Id. Finally, the ratio limit prevents contractors from undercuttinathe urevailina waae reauirement bv hiring apprentices to do the work of‘journeym&. Ia. at'6; see also Building A Construction Trs,desDepartment, AFL-CIO, v. Donovan, 553 F. Supp. 352, 355 (D.D.C. 19827 (undercutting the act by hiring aelpers" to perform the work of journeymen is prohibited), modified (on other grounds) 712 F.2d 611 (D.]:.. Cir. 1983), cert. denied 464 U.S. 1069 (1984). Thus, local government.albodies must require that public works contractors comply with federal regulations regarding apprentice programs in order to rewive federal financial assistance under a variety of federal acts. --- !:t!e 29 C.F.R. 05.5(a)(4). The ordinance in question, however, applies by its terms to 100% locally-funded city public works construction projects. See General Conditions of San Antonio Ordinance No. 60110, 512, 3. - The San Antonio ordinance was enacted "[iln accordance with article 5159a.u General C:onditions of San Antonio Ordinance No. 60110, $2. Section 1 of article 5159a provides, in part: p. 2122 , . Honorable George Pierce - l?age4 (JM-463) Not less than tlur general prevailing rate of per dieaiwages for \ra#rkof a similar character in the locality in which the work is performed . . . shall be paid to all laborers, workmen and mechanics employed by or on behalf of the State of Texas, or by or on behalf of any county, city and county, city, town, dist:rictor other political subdivision of the State, enlbagedin the construction of public works. . . . Thus, the Texas Legislature has not only authorized but required the payment of prevailing wage83on state and local public works projects. State and local prevailing wage ordinances have been upheld in s number of jurisdictions. See, e.g., Bernard1 v. City of Highland Park, 482 N.E.2d 114 (Ill. App. Ct. 1935); Roland Electrical Co. V. Er and City Council of ILaltimore,124 A.2d 783 (Md. 1956); see also Conunissionof Labor and In&tries v. Worcester Housing Authority, 393 N.E.2d 944 (Mass. App. Ct: 1979); In re Sellers, 215 N.Y.S.2d 385 (N.Y. App. Div. - 1961). 'The Supremacy Clause of the United States Constitution does not require a state or city to adopt the federal prevailing wage scheme on wholly locally-funded public works projects. See Hayen v. County of Cgle, Illinois, 463 N.E.2d 124, 129 (Ill. im4); cf. Attorney Genecal Opinion R-911 (1976). Its adoution. however,x certai&y not prohibited. See, -e.g.; Ritchie P&ing; Inc.. V. Kansas DepartmerE of Transportation, 654 P.2d 440 (Kan. 1982). In Ritchie Paving, the Kansas Department of Transportation adopted the federal wage rz.tesfor a wholly state-funded project. The Kansas Supreme Court upheld this action against a challenge that it violated the state's prevailing wage statute. The court reasoned that, because the state prjcvailingwage statute was modeled after the federal act, the federal standard was not inconsistent with the purpose of the state act. 654 P.2d at 444-45. The court also indicated that the adoption of the federal standard was not an invalid delegation of authority be~:ausethe decision to use the federal scale was that of the state tcsnsportation department, not the 'federal department of labor. 654 I'.2dat 445. Similar consideration3 apply to the case at hand. One of the primary objectives of thl! statute is to protect workers. Texas Highway Commission V. El. Paso Building and Construction Trades Council, 234 S.W.2d 857 ?rex. 1950); Cullipher v. Weatherby-Godbe Construction Co., Inc., 570 S.W.2d 161, 164 (Test. Civ. App. - Texarkana 1978, writ ref'i. n.r.e.); Southern Prison Co. v. Rennels, 110 S.W.2d 606. 609 (Tex. Civ. App. - Amarillo 1937, writ dism'd); Attorney General Opinion J&329 (1985). The act not only authorizes the compliance with federal.standards that is necessary to.the receipt of federal financial assistance but parallels the federal purpose on p. 2123 Honorable George Pierce - Page 5 (JM-463) 100% locally-funded projexts. Article 5159a was modeled on the Davis-Bacon Act. Attorney General Opinion JM-329. Consequently, we do not believe that San Ant:onio’s adoption of the federal standards for apprentice programs on 100% locally-funded projects is inconsistent with the state ,prevallingwage statute. Moreover, the courts in Rennels, Culllpher, and v Commission ind1.cated that s city’s determination of ptnrailing wage is not reviewable by the cour1:sbecause it is a function delegated in article 5159a to the discretion of governing bodies. The conclusion that a city has broad discretion in determining prevailing wage also suggests that it has broad discretion in deciding the related matter of apprentice program. Ece Attorney General Opinion H-350 (1974). --- These cases, however, are based on the well-established principle that determinations of fact that are delegated to a govermen tal body cannot be reviewed. The legal meaning of prevailing wage and the proper scope of a city’s powers under article 5159a are arguably legal questions and therefore sti):Iect to review by the courts. A decision on the meaning of prevaili:lSwage and on the scope of a city’s power under article 5159a is currently pending court decision. (No. CV-01-86-00018). The city of Houston appealed a ruling by the 152nd .Dlstrict Court, on Dece&a:c 20th, 1985 (No. 85-66195), granting a temporary injunction against the city’s enforcement of a “weighted .- average” interpretation ol’ prevailing wage. This office has long followed a policy of refrrliningfrom issuing an opinion on a matter which is before the courts, Because we find that the San Antonio ordinance In question is consistent with article 5159a. however, we need not address the issue of whether the city has broader powers under article 5159a. You indicate that th#: apprentice programs now in operation in Buar County are operated by unions and are open only to union members. Consequently, you suggest that non-union workers are precluded frownparticipat%m In the -apprentice programs in violation of article 5207a, the stattr’sright-to-work lav. This explanation of the purpose and operation, of apprentice programs, however, damon- strates that the programs are designed to benefit all workers, not just union workers. Nowhere do the San Antonio ordinance or the federal regulations upon which the ordinance :Le based preclude non-union employers from operating an apprentice program in accordance with the standards of the Wired States Departmers of Labor. To decide that these programs, which are designrd to protect workers under the prevailing wage law. violate the state’s right-to-work laws would be akin to saying that all minimum wage and maxirlcmhour laws and minimum safety standards violate the law. See V.T.C.,S.art. 5159d (minimum wage); art. 5165.1 (maximum hours); aTt8. 5173-5175 and 5179-5180 (protection of health r‘ and safety); art. 5181.1 (child labor); art. 5182-5182-1 (protection p. 2124 Eonorable George Pierce - Page 6 (JM-463) of workmen on buildings); art. 5182a (occupational safety). The prevailing wage statute, article 5159a, and the right-to-work statute, article 5207a, are part of the same statutory scheme protecting labor in this state. The fact that those statutes have existed together for nearly 40 years is a good indication that the Texas Legislature does not consider them inconsistent. Consequently, we conclude that the ordinance in question does not violate the state's right-to-work laws. SUMMARY An ordinaace of the city of San Antonio, euacted pursuant to' the prevailing wage law, article 5159a, V.'P.C~.S., that requires apprentices or trainees on 100% locally-funded public works projects to be cmolled in au apprentice program which meets the federal labor specifications does not violate the state's right-to-work law, article 5207a. V.T.C.S. JIM MATTOX Attorney General of Texas JACK EIGRTCWRR First Assistant Attorney Gemral MARY KELLER Executive Assistant Attorney General ROBERT GRAY Special Assistant Attorney General RICR GILPIN Chairman, Opinion Committee Prepared by Jennifer Riggs Assistant Attorney General p. 2125