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 Economic Development 

Texas House of Repnxahtives RC: wlldha Govantnalt code se&ion 

P.O. Box 2910 2258.021 lrquim 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~rc it appears that Chpter 2258 

would ia fact apply to the ES&n project bid March 20.1996. 

We note hat the kgi&tuw repealed V.T.C.S. &le 515% in 1995.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 22S8.0Z15 entitles a worker employed 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 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 pmjec3 involves 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’s wages for Tuesday, 

Fmm the exempkuy situations the union has detded,” we gatha that, 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) 

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 conclude thst a conkactor who violates section 2258.023 must 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 “Right to be Paid 

RevliIiogW~~~andmarsdatcsthataworkaemployadonapublicwodrYs~&~ 

nolessthantheprewGgwagerate. Chspter2258exa1~the contradrlimupayingthe 

predingwsgerateonIyiutwocirarmstances: iir&iftheworkislimitedtomahnam+or 

~ifthcpublicbodyfailcdtolistinthtoontractthtprcvailingwagerates.~ 

msxI#atcxt acoonrpaaying uotcs 27.28 @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 

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&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 unresolved issues mlating to 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 reoeived the worka’s complaint snd adjudging the 

allegations substsntiated, withholds an insutlicicnt amount of money to mslce the 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 bimding atlaikation. 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). 

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 electricians working on 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 detexmined the 

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 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 

SARAH J. SHIRLEY 

Chair, Opinion Gxnmittee 

Prepsred by Kymberly K Oltrogge 

Assistaut Attorney General 

D. 2654