Opinion ID: 1376298
Heading Depth: 4
Heading Rank: 1

Heading: ALDBA provides a private cause of action.

Text: ALDBA was modeled after the Davis-Bacon Act, 40 U.S.C. § 276 (1988). ALDBA stipulates that a contractor or subcontractor on a public construction contract must pay its employees the prevailing wage rate for similar work performed in a similar region. AS 36.05.010. The superior court concluded that a predetermination of ALDBA applicability is necessary before there can be a private right of action against the contractor. The court relied upon Universities Research Ass'n. v. Coutu, 450 U.S. 754, 101 S.Ct. 1451, 67 L.Ed.2d 662 (1981), which held no private right of action exists where there has been an administrative determination that Davis-Bacon does not apply. In Coutu, Universities Research Association made a contract with the Atomic Energy Commission (AEC) to provide scientific and management services in connection with the construction of the Fermi National Accelerator Laboratory. The contract expressly stated that it was not contemplated that Universities Research Association would use its own employees to perform work that the AEC determined to be subject to the Act. Coutu, 450 U.S. at 762, 101 S.Ct. at 1457. The Court concluded Davis-Bacon did not confer a private right of action for back wages under a contract that administratively has been determined not to call for Davis-Bacon work. Id. at 767-68, 101 S.Ct. at 1459-60. The superior court was persuaded by the rationale of Coutu, which emphasized the importance of giving certainty in construction bids. The superior court extended the rationale of Coutu by determining that no private cause of action would exist, not only when a predetermination of non-applicability has been made, but also when there has been no determination at all. Dayhoff argues that even if the court accepts the holding in Coutu, there is good reason not to extend the rationale to this case. Dayhoff asserts ALDBA's fundamental purpose is to benefit employees by assuring that those engaged in public construction receive at least the prevailing wage. City and Borough of Sitka v. Construction and General Laborers Local 942, 644 P.2d 227, 232 (Alaska 1982). Coutu limited employee rights by requiring an employee to appeal the administrative determination that Davis-Bacon did not apply. By extending the ruling to cases where no determination has been made, the employee is left without a remedy. In this case, Dayhoff argues, he could not have made an administrative appeal because no administrative ruling had been made. Dayhoff points out that in this case there is no question the primary contract was subject to ALDBA. He argues that the intent of the statute, which is to protect employees on public construction projects, would be frustrated by denying his claim. Temsco argues that while this court has not ruled on the availability of a private right of action under ALDBA, federal courts have construed the Davis-Bacon act as not providing a private cause of action. The United States Court of Appeals for the Fifth Circuit has decided that neither the language, the history, nor the structure of the statute supports the implication of a private right of action... . United States ex rel. Glynn v. Capeletti Brothers, Inc., 621 F.2d 1309, 1317 (5th Cir.1980). Temsco argues that the trend and the rationale of the federal courts, limiting employees to administrative remedies, should be adopted. [2] Temsco concludes that the administrative remedy provided by the Act is sufficient to protect employee rights. In City and Borough of Sitka, 644 P.2d at 234 n. 14, this court expressly left open the question whether a private right of action to recover back wages is authorized under ALDBA. We noted the United States Supreme Court's decision in Coutu, but did not decide what impact, if any, it should have on ALDBA. Id. This case is fundamentally different from Coutu. In Coutu the government contract specifically was for non Davis-Bacon work. In the present case there is no question the prime contract was subject to ALDBA. DOL investigated Dayhoff's claim, made no formal determination, and advised Dayhoff to pursue a civil action. To determine if the legislature intended to create a private right of action, the court should look at the language and focus of the statute, its legislative history, and its purpose. Coutu, 450 U.S. at 770, 101 S.Ct. at 1461. The purpose of ALDBA is to protect employees engaged in public construction from substandard earnings. City and Borough of Sitka, 644 P.2d at 232 n. 11. When the prime contract is subject to ALDBA, DOL investigates, and DOL suggests that the employee file a civil suit; the only way for the court to follow the intent of the legislature is to allow a private cause of action.