DAN MORALES

KrroaNEYoENEaAL 

### QBffice of tfje !ZMmep QBenecal @date of Qexa$

March 12.1998

The Honorable Rent 0. Oliveira opinion No. DIM-469 Chair, Committee on EconomicDevelopment 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’ swage 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~rc it appears that Chpter 2258 would ia fact apply to the ES&n projectbid March20.1996.
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 fhCpenalty 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 wagesthe worlca shouldhave received andthe wages he or she actually recciv6d. Assuming h4kiwestemState University has de&mined that the contractor here has not v&&d chapter 2258, we believe the worka snd the contractor must arbitratethe 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 section22S8.0Z15 entitles a workeremployed on a public work to wages ~toargreaterthanthcpmrailingwagerafeinthclocalityinwhich~workisbcingpaformed

BIGHT To BE PAID PREVAJLXNG WAGE 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 HonorableRed 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 maintenancework (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, $60lXeHonorableRen~O. Oliveim - Page 4 W-469)

foreachworkaanployedfweachcalcadardayorpartofthcdaythatthe worka is paid less than tbe wage mtes stipulatedin 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&S

on 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’ swages for Tuesday,

Fmm the

exempkuy

situations

the union has detded,” we gathathat, among other things. the union is concaned that individual workers have been classed f4s joumeymul 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) at2The HonorableRa16 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 ofthe electricalwork,the wotka receives apprentice’ swages. Whetha a worka is ajourneymsn or an spprentice is not a question requiring a legal lntaprecston of chaptex2258, 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 classificationof worker that the contractorhires sn& most importsntly, to set the prevaihg wageThe HonorableRe& 0. Oliveira - Page 6 (Dn-469)

ratetowhicheachclassZcatiionofworkaisentitlsdpo Solongasthepublicbodyhssinplacea systunwha&y,priortothehiringitn5vkwsa amtra&YsqucsttohkaaatIortypeofwodca natspacifiedin~e~andddamimsthel~pnvailingminimumwageratc,we¬ believe a eontractor who complieswith 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 approvedthe 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 violationsof otha sections of cbapta 2258, however?’ Siiy, we concludethst a conkactor who violates section 2258.023must pay the sixtydollarpa&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,s titled “Rightto be Paid RevliIiogW~~~andmarsdatcsthataworkaemployadonapublicwodrYs~&~ nolessthantheprewGgwagerate. Chspter2258exa1~the contradrlimupayingthe predingwsgerateonIyiutwocirarmstances: iir&iftheworkislimitedtomahnam+or ~ifthcpublicbodyfailcdtolistinthtoontractthtprcvailingwagerates.~

msxI#atcxt acoonrpaaying uotcs27.28 @i.sam& chqier 2258’s primslypmposc).

=%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 maitsexplsnation To&ate conhing&munentmachanism,though,andwefcelit 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&hnuyGmm’n v. ElPcuoBldg.& 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 abro8atethe 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 contractorto 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 submitto an arbihator auy unresolved issuesmlatingto an allegedunderpaymentunless 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 adjudgingthe allegationssubstsntiated,withholdsan insutlicicntamountof moneyto mslcethe underpaidworker whole. Inanyotbasituatio~webeliev~ansgg7idworkaandthe contm&ormusttxytosettle or submit to binding arbitration. We believe this constn&on is collFistentwith the Iegi&tive histoty of the arbitration provision which was addedin 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. JAWS 2300,230O-Ol.

wee scoatc comm on IutcrgovcImwn tal RolaIioos, Bii Analysis, C.S.H.B. 560.73d Leg., RS. (1993). YHcaringson 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 remodelingproject is subject to Govanma&CodechaptczZ258, MidwestemStateUniveasitymustrequire the contractor and subumtractom to pay no less than the local, prevailing wage rate to electricians

workingon theprojectunlesstbe work is limited to maintenance. Government C&e chapta 2258 does not as a matter of law prohibit a contractor frompaying 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 wagerate. 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 undexpaid worka 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 SARAHJ. SHIRLEY Chair, Opinion Gxnmittee Prepsred by Kymberly K Oltrogge Assistaut Attorney General

D. 2654