QBffice of tfje !ZMmep QBenecal
@date of Qexa$
DAN MORALES
KrroaNEYoENEaAL March 12.1998
The Honorable Rent 0. Oliveira opinion No. DIM-469
Chair, Committee on Economic Development
Texas House of Repnxahtives RC: wlldha Govantnalt code se&ion
P.O. Box 2910 2258.021lrquim Midweatan state university
Austin, Texas 78768-2910 to pay the prevailing wage rate to ekctriciaus
pUf~WOIiCOXlBOlillSCiUlCCHall,d
-cIuestions iw-=9
Youalsoaskfi~mare~cqutstionsabout~~codcchaptcr~8. First,yon
askwhcthaacontractorvio~~chaptabypayingoneworktrtwodi&cmt~ofl#ly. We
corscludcitisnotaviolationasamattaoflaw,altaltaltaltaltaltalu~itmaybeaviolationasamattaoffad
Second, you ssk whe-tha it is a violation of chapter 2258 to employ a craft or type of worka not
listedintheoriginalpubli~workcontra& Weconchdethata conbcbxmayhireacraftortype
of worker not listed in the contract’s wage debmhation so long as the public entity appmves, in
~~hiringanddetamincsthcprevailingwageratetowhichtheworkaiscnti~~ Third,
youaskwhethathe~dollarpenaltysection2258.023(b)leviesonacontractorwho failstopay
llmcisaoqostiontichapta2258~llostoworkatMidwcatcutStatoUnivcrsay
ifbidaftaS+mbcr1,19!95. Thcquestionxmaim wbctba rutf.] 5159a might take
prcccdcllaovaChaptcr2258-itwas~hthc--. ‘lb
public body lacks kgislative ability to mwite law, thccefi~rcit appears that Chpter 2258
would ia fact apply to the ES&nproject bid March 20.1996.
We note hat the kgi&tuw repealedV.T.C.S. &le 515% in 1995. See Act of Apr. 25,1995,7&h Lag., RS.. cb. 76,
0 5.49(b), 1995 Tcx. Gen. Laws 458.505. The substam of that article is codified at Gwenmeat Code cbapta 2258;
auycbaogosmadc as arcsultofthemditicationdificationPrcnoDsubatantivc
Seeid. 55 1.01,5.49(a), 1995Tcx. Gen.Laws458,
458.502-05.
ThcHonorableReu.50. Oliveira - Page 2 (DM-469)
&e pmrailing *0 * is mandatoIy or optiotlal.We CoIkClude papent Of fhC penalty is
macadatory.Forrrth,youask~the~~~penaltyisrsqrriredtven~~ewoika has
agnedto~twages~l~&qeva&gwage. Weconcludethatitis. Fifthaudfinelly,youask
how a worka misclass&d as an appre&~, end who thaefore received a reduced wage, may
d&t the dX&nce between the wages the worlca should have received and the wages he or she
actually recciv6d. Assuming h4kiwestem State University has de&mined that the contractor here
has not v&&d chapter 2258, we believe the worka snd the contractor must arbitrate the issue.
Welmdastandthatyouraise~~isrmes~~IetanationalBrothahoodofElactrical
Workas alleges that A-Bar Elect&, Inc., which we undastand to be a subcontmctor on the
remodelingofthcBolinScicaceHa4ispayinglcssthanthelocalprevailingwagcrateto
~&&&us. ~~~if~~~dlegesinpartthatatlcadomworkcr~loyedby
A~Ekctricwas~~infomdiffaent~oPtypesof~raceivinga~wrgcntte
foreachaaftortype. Additionally,itisaUegedthatworkaswas&ssifiedinsome~ortypcs
ofworkthatMidwestanStateUnivasityhadnotktedinthecontra&z Monova,makriakyou
s&withyournqucstcontendthatA-BerEle&ichas,inseveralManocs,misclassifiad
~~~~arappnnticcs,thadryreducing~wagcspaidthose~~iciaaSbalowtfie
preva%qwagelevelfbrjoumeymaL 3 WewkstaudthatMidw&auStateUnivasityandA-Bar
&etric eontest these allegations. This office is not a fact-finding body: and we assume for
purposesofthisopinionthattheaUegationsaretrue.
You~einyonrl~totfikFoffict~thcBolinscicnctHallprojcctissubjcctto
G~anme&Code~hapter2258,audweacceptyour~without examihgit huyevalt$
wemustrelyonyour ~bccauscwehavenot~adesaiptionoftheprojectbeyond
sn iudication that it is a remodeling project. Accordingly. we will discuss next the pertinent
pnMionsof&aptes2258.
Govenun& code section 22S8.0Z15entitles a worker employed on a public work to wages
~toargreaterthanthcpmrailingwagerafeinthclocalityinwhich~workisbcingpaformed
BIGHT To BE PAID PREVAJLXNGWAGE RATES. (a) A worka
employed on a public work by or on behalf of the state or a political
subdivision of the state shall be paid:
The Honorable Red 0. Oliveira - Page 3 @H-669)
(1) not less than the gaxxal pmkling rate of pa diem wages for
workofasimilarcharaderinthelocalityinwfiichthcworkis
P=fommad;c
. .. .
@) Subsection (a) does not apply to maintenance work
(c) A worka is employed on a public work for the pmposes of this
sectioniftheworkaisanployedbyacontmctororsdcodxMinthe
executiou of a con&act for the public work with the state, a political
subdivisionofthestatc,oranyoffi~orpublicbodyofthestateora
poEtiealtxubdhsonofthestate.’
supaviscsordircct~thewo7lc.~ Thepubliclnxiymustspecifyiuthecallforbidsaudthecoutract
thepreva&gwagerateforeachaaftortypeofworkanccessary toexeeutetheco~
S~,acontrector’0~ishircdtopafaanthc~~”~~payworhrs~loyedin
thecJrecrrtionofthe~~llessthanthcprevailingwageratespacifiedinthccontract*1 A
conWdorwhoviolatestheprevf%gwageraterquiremeutmustpayapenaltyz
AC0utlXW . ..whoviolatesthissection&allpaytothestateora
political subdivision of the state on whose behalfthe contract is made, $60
lXeHonorableRen~O. Oliveim - Page 4 W-469)
foreachworkaanployedfweachcalcadardayorpartofthcdaythatthe
worka is paid less than tbe wage mtes stipulated in the contmcL’2
W~thissummaryofchapter2258,wetumtotheisswsyouraise. Weuu&de,inauswer
toyourmhdq~estiaz~a conha&rhiredtowodcontbeBolinScieuceHaUprojeotmustpay
m,lessthan~pnvailingwagcratetoel~~worLingontheprojedunlcsstheworkislimited
tomainkmance. GovemmaKodesedion2258.021(a) a&lesawodceremployedonapubli~~work
projedonbehalfofthestatcorapoliti~subdivisionbM,lessthaathcprevailingwageratc.
Addition&y, seotion 2258&23(a) mquircs the oo&&or onapubl+workpxojeotto pay workers
onthepmjectnolesstbimthepreva&gwagerate. Mainteaaeceis,howeva,exccpted&nnthe
jmvaihgwageratemquirem~” Asthisofficepreviouslyhssssi~%ai&mme”mfa~t~
odimyupkcepandrq7aimneccffarytoprcsave~ingoodumditi~M WhethertheBoliu
ScienceHallprojectismaintaramxisa~~offadthatis~amcaabetothtopinion
~roccs.7 Ifthcprojectisa~~projecfap~uDionbasallegcdandasthtttrm
%mdehx@iscommonlyundastood,wesutmise the pmjec3involves more than ml6
Inanswatoyourfirstspecificquestl~weconcludethata~ dOCSUOtViOhtC
chapta2258asamatkroflawbypayingasinglewoAatwodifka&wagemtes. Inouro@km,
theprevahgwsgemteattscbestothejobpafbrmed Ifanhxiividualpafinmsdiffenmtjobs,he
orsheisaltitledtobe compenSateaatthepnwaGngwagemteforeachjob. So,forexample,ifone
worka WO&Son Monday aa a stonemason and on Tuesday as a cspenter, he or she is e&led to
mxive stonrmason’s wages for Monday and carpenter’s wages for Tuesday,
Fmm theexempkuysituations
theunionhasdetded,” we gathathat,amongotherthings.
the union is concaned that individual workers have been classed f4sjoumeymul for some oftbe
worktheypaformedandasepprentccsforothawok Wedonotbelievechapta2258isviolated
“Id. 5 22.58.023(b); see aho id. 0 2258.022(c) (rennirinp public body to qeciijt pt-mibg wage ates in
oeohad). Padtymmios.apubliclmdycollcdsdoaotgototbermdapaidw0rkas. Rathec~tbcpubliobodymst~~~
themonitstooffsctc~stsinamadi11administicringcimpter2258. Seefd.~W8.023(d).
“See Id. 5 2258.021@).
“See Atmaey Gcnad Ophion O-1216 (1939) at 23 (and -OitOdthcrcin).
~~~~.,AttomoyGeaQal~~DM-98(1992)rt3.H-56(1973)~3,M-187(1968)at3,0-W11(1940)
at2
The Honorable Ra16 0. Oliveira - Page 5 (DN469)
ifanindividuslworkawhoisajoumeyman inonecraftandanspprahxinanothaispaid
accordingly;forinstance,inthcGxamplewejustusad,aworkamaybcajoumeymanstonemason
but an apprentice carpenter. Neveaiheless,we assume the union is concuned that one worker. a
jo~~~~joumeyman’swagesfor~butnotall,oftheclectrical~orkthe
worlcapafbrms. Forthe rendnda of the electrical work, the wotka receives apprentice’s wages.
Whetha a worka is a journeymsn or an spprentice is not a question requiring a legal
lntaprecston of chaptex 2258, which does not dihgukh betwm the two. Ratha, it may be a
qucstionofcontract~~o4ataskUlisoffi~isnotbquippadta~~” Itisalsoa
question of f&it9
bodyhas~theapporhmitytoapprovethc.hiringandtodetcrminethcprtvailingwagtratcto
whichthenewchsificationofwotkaisentitled. Wenote,ofcourse,thatsedion2258.OLQreqks
apubliobodytospacifyin~caLiforbidsandthe~thcgcneralprevailingeratcWor
tachaaftottypcof~~ncedcdtocxccntethccontract....” Butwecsnuotsaythatthe
kgi&urehtendedbythistorestri~ipublicbodyorits contm&rhmhiringclassZ~onsof
~thenccdforwhichwas.notoriginallyforeseca,toraspondtoasituationdiscovertdafta
thepublic-wohpmjecthssshted. Forexsmpl~inthecourseofaremodelingpmjec&pa&sto
tbe~maydisoova,asthcplastacomcsdown.~damage~carmotbepropaly
~byrolyofthccsaftsortypesofworkaslistedinthecontraa Inourview,thelegi&ure
~bythc~ofsacti~~8.022to~thepubIicbodytaappnnrcinadvanctevay
classification of worker that the contractor hires sn& most importsntly, to set the prevaihg wage
The Honorable Re& 0. Oliveira - Page 6 (Dn-469)
ratetowhicheachclassZcatiionofworkaisentitlsdpo Solongasthepublicbodyhssinplacea
systunwha&y,priortothehiringitn5vkwsa amtra&YsqucsttohkaaatIortypeofwodca
natspacifiedin~e~andddamimsthel~pnvailingminimumwageratc,we¬
believe a eontractor who complies with that system violates Ci~vanmd Code chspta 22.58. A
co&actor may not, howeva, hire a cratI or type of worker if the public body hss not approved the
lkiugaaddetexmhedtheprevsilingwagerateinadvancc.
Weconcl*inreqensetoyourtbirdspec&questioqthstaca&acto rmust,notwv,fw
asixty-dollerpenaltyifthecontractorhasviolatpdsection2258.W. Seetion2258.023@)desaiba
tJqaaltyasamandatory,notanoptional,pu&mta& “Acor&actor...whoviolatestbisse&on
shallpay... S60forcachworkacmployedfoteachcalendardayorpartofthedaythatthcworker
ispsid&ssthsnthewsgerstesstipulstedintheeo~” l’besixtydoIlar@tysection2258.023
pmaibes does not apply to violations of otha sections of cbapta 2258, however?’
Siiy, we concludethst a conkactor who violates section 2258.023 must pay the sixty-
dollarpa&yeveniftheuadapaidwodcersgrecdtoacccptawsgeratebelowthelisted,pmvaikg
wsgerate. Section2258.@23(a)rquimsthe -topaynolcssthauthelistad,prcvailingwsge
rata. Monovcr,chapta~8~~~prcvailingwagcrate~~asa~s
eat&me& @tion 2258.021, as am& by the legislature in 1997,= i,stitled “Right to be Paid
RevliIiogW~~~andmarsdatcsthataworkaemployadonapublicwodrYs~&~
nolessthantheprewGgwagerate. Chspter2258exa1~the contradrlimupayingthe
predingwsgerateonIyiutwocirarmstances: iir&iftheworkislimitedtomahnam+or
~ifthcpublicbodyfailcdtolistinthtoontractthtprcvailingwagerates.~
msxI#atcxt acoonrpaaying
uotcs27.28 @i.sam& chqier 2258’s primsly pmposc).
=%a Gov’t Code 5 2258.023(b).
=Sa Aot of May 8.1997.75th Lq., Rs., ch. 165.0 18.01,1997 Tex. Seog Law Sav. 327.486.
TheHonorableRan5O;Olive& - Page 7 (DK-469)
Fnally.inrespcwsttorourlastclucstionwe~thataworka~bclicvcshearshe
hasbeeaunderpaid,but~thcpublicbodyhasdetczminedwasnotundapaid~chapta
225&~submittheissuetobiiarbitmtionunlesstheworhandtheconhcbx cansettlethe
issw C&qta2258setsupaxmewhat conhing&munentmachanism,though,andwefcelit
maitsexplsnation To&ate cxdbaa&suaggti~workamust6leacomplaintwith~e
publiebodyfhatawardedthecontmt.m Thepublicbodymustmakean%itialdetamh&on”as
towhethaithssgoodcausetobelievethatrhecontractor hssinfactvIolatedchapta2258.m Ifthe
=+-i-Q
Ie&sl$my~awt iotond tk bill to include the rejected ptodshn S~~~ANORMANJ.SINGIB.S~A~AND
~s~wcno~Q48.18(5thed.1992). Ontheotkhmd,itmayhdicatethatthelqis~foltthe
-wssmdmulwt ufoomdhiDgllradybltbohertatutc said. Itm!dyolmsoggestelat0lc-suffd
tiumapmadmaIirrcgularity.
%?esouthsnPr&on ch. v.Re?Jmk, 110s.w.2d606,609(-rex.c!iv.App.-Amarill0 1937,writdism%);
TerasIi&hnuy Gmm’n v. ElPcuo Bldg.& Chn?. Cb., 234 S.W.2d 857,860-61 (Tez 1941) (quoting witi qqmval
ihUhmprironcO, 110S.W2da0%-09)$h@v. YoMgBmr..Iw,835 S.W2d22l,WCraApp,Wux,cx.~.-Waco 1992,
voitdalcd); Culfipherv.W,?aihe&M Corm?. Co.. 570 S.WZd 161,164 (Tex. Civ. App.-Tcxarkma 1978, tit
refdn.r.c~ AttomcyGaaal0piipinionFJM-48 (1986) at4-5, M-329 (1985) at2-3. CIiqtex2258 - a sccahy
lturpozto~biiwdc mpublicwodfspmjcds~ttscyarc~0paywoIkaswhatulcpublic
bodyhasdctanrincdistbcprevailinwagcwagCinthcthc SasOurhmrprironcO.,110S.W~at609.TocollJtruc
ch+d258topemtaa- toavoidlbcpnwdungwage~byulsking”mwlp~to~forlcss
‘hao the prcwdl& wage rate.would abro8ate the need for mcb notificatior~
=See Act of Mar. 21.1933.43d Leg., RS.. ch 45,$7,1933 Tcx. GUI. Laws 91.93-94.
%ee Oov’t Code $0 2258.051, .052.
“‘See ids WS.OSz(a), (b),
The Honorable Rent 0. Oliveira - Page 8 (Dn-469)
itmust~ldpaymentsduethccontrador,aeditmayusethatmomytoreimbursetheworka:”
If the public body has not withheld enough from the contractor to fully reimburse the workcx,the
worker may sue the contractor and the contmcMssuretyfbrthe rcambdq money he or she is
owed.= In addition, se&on 2258.053(a) pmides that a co&actor and aggrieved worka must
submit to an arbihator auy unresolvedissues mlatingto an alleged underpayment unless the worker
snd the contractor settle the issue in a timely msnnczs
In our opinion, chspta 2258 permits a worker to seek a judicial remedy only in one
circumstance: whae the public body, having reoeivedthe worka’s complaint snd adjudging the
allegations substsntiated,withholds an insutlicicnt amount of money to mslcethe underpaid worker
whole. Inanyotbasituatio~webeliev~ansgg7idworkaandthe contm&ormusttxytosettle
or submit to binding arbitration. We believe this constn&on is collFistent with the Iegi&tive
histoty of the arbitration provision which was added in 1993.% The arbitration provision was not
inthe19!I3billasitwssin&&cod Rathqthebillss&oducedpmvidedthatacontradaror
~~iSBggricVedbya”public~sdtcisionona~~’Escatitltdtojudidalrcvicw
bytrialdenovoinacomtofumgeta&j TbeSenatocommittbconIntergovernmartal
RclatioIlsdeleladthctdal&Mwoprovisionbut~~fhatumesolwdissaesshouldbc~~
tobiiarbitration.~ SenatorBarriento%cxplainingtheSaMecommitteesubstitutG indicated
thatunderthermbstitute~t]heo~mattathatcanbcappcaladtothe~~isifthccityhas~t
retahedenoughmoneytithepaymwtstothe conlmc&tosatis@theawsrdofthearbitrator.~
Wecaonotadviseyouastowhatremadicsanavailabetothcalltgedly~~~pvorkcrs
“See id $9 2258.052(d), .056(a).
‘Se id. 5 2258.056(a), (5).
“See id. Q$WS.O23(a), .053(a). ‘lb v/o&a sod tbc -mustscttlcm-lvcdissuetidlin15da~
of the public body’s initial detumina6on or admit the issue to bimdingatlaikation. See id. 5 2258.053(a).
yseCAct of May 29,1993,73d Leg., RS, ch. 606, sec. 1.0 z(d), (e), 1993 Tax. Gm. JAWS2300,230O-Ol.
wee scoatc comm on IutcrgovcImwn tal RolaIioos, Bii Analysis, C.S.H.B. 560.73d Leg., RS. (1993).
YHcarings on ILB. 560 Before.the senate c4mlm. on Intagov- Rclatio~~~,73d Leg., RS. (May 19,
1993) (statcmcllt of Senator Barrienti) (tape available hm senate staff Scrviccs).
p. 2653
‘IheHonorableRen~O. Oliveim - Page 9 W-469)
SUMMARY
Assuming that tbe Bolin Science Hsll remodeling project is subject to
Govanma&CodechaptczZ258, MidwestemStateUniveasitymustrequire
the contractor and subumtractom to pay no less than the local, prevailing
wage rate to electriciansworkingon the project unless tbe work is limited to
maintenance.
Government C&e chapta 2258 does not as a matter of law prohibit a
contractor from paying one worka two ditkent wage rates.
So long ss a public body hss in place a system whereby, prior to the
~itmricwsa~ntractorsrequesttohircacraftortypeofworkanot
speeifiedinthecmtractsnddetaminesthel~~wageratc,we
do not believe a contra&r who complies with that system violates
Govanm~tCodechspta2258. Acontractormaynot, howeva,hkeacmft
or type of worka that tbe public body has not approved and detexminedthe
preva&gwagerateinadvsnw.
AcoWactorwhopayswodcemlcssthanthepnklingwageratesetout
inthecontract~notmay,payasixty-dollarpcnaltytothepublicbody.
Itisnotadefensethatthcrmderpaidworkeragreedtoacccptawagerate
below the listed, prevs%ng wage rate.
Chapter2258pcrmitsaworkatoseekajudicialnmadyonlyinone
circumstance: whae the public body, having tived the work&s
complaint and adjudging tbe allegations substantiated, withholds an
insdicient smount of money to mske the undexpaidworka whole. In any
othasituation,chapta2258 quirks anaggrievedworkeraudtbeco&actor
to try to settle the issue or submit to binding arbitration.
DAN MORALES
Attorney General of Texas
JORGE VEGA
First Assistant Attorney Genersl
SARAH J. SHIRLEY
Chair, Opinion Gxnmittee
Prepsred by Kymberly K Oltrogge
Assistaut Attorney General
D. 2654