Document: 450 U.S. 754 101 S.Ct. 1451 67 L.Ed.2d 662 UNIVERSITIES RESEARCH ASSOCIATION, INC., Petitioner,v.Stanley E. COUTU. No. 78-1945. Argued Nov. 10, 1980. Decided April 6, 1981. Syllabus Section 1(a) of the Davis-Bacon Act provides that advertised specifications for federal construction contracts in excess $2,000 "shall contain" a provision stating minimum wages to be paid laborers and mechanics, which must based on those Secretary Labor determines prevailing locality, further every contract such stipulation contractor will pay not less than stated specifications. Petitioner made with Atomic Energy Commission provide scientific management services United States connection construction, alteration, repair Fermi National Accelerator Laboratory, high-energy physics research facility. The was administratively determined call work subject Act, therefore did contain wage stipulation. Respondent, former employee petitioner, brought suit against petitioner behalf himself others similarly situated, seeking damages theory had violated by failing work. District Court entered summary judgment ground since it appeared from record there were no express stipulations contract, would improper court declare first instance make appropriate determinations parties. Appeals reversed, holding if actually performed its own employees, respondent his class became entitled wages, remanded case allow opportunity demonstrate, he could, used him perform Held : does confer upon an private right action back under has been thus stipulations. 767-784. (a) While requiring certain placed benefit mechanics laborers, § 1 rights directly these individuals but is simply "phrased as directive agencies engaged disbursement public funds." Cannon v. University Chicago, 441 677, 693, n. 14, 99 1946, 1955, 60 560. That Congress intend authorize where are also indicated absence comparable 3 confers working containing conditional payment bond required Miller Act. Pp. 771-773. (b) Act's legislative history supports conclusion implication circumstances this inconsistent congressional intent. No contrary inference can drawn Portal-to-Portal 1947. 773-781. (c) Finally, underlying purpose scheme indicates create asserted respondent. To imply sue destroy careful balance strikes between interests contractors their employees. In addition, determination introduce substantial uncertainty into Government contracting, undercut elaborate administrative promulgated assure consistency administration enforcement 782-784. 595 F.2d 396, reversed remanded. Robert Mann, Ill., petitioner. Harriet S. Shapiro, Washington, D.C., States, amicus curiae, special leave Court. Jay Nye, Justice BLACKMUN delivered opinion requires Labor. question presented whether work, 2 * March 3, 1931 (Act), ch. 411, 1, 46 Stat. 1494, amended, 40 U.S.C. 276a(a),1 "for and/or . buildings or works shall various classes prevailing" corresponding employed similar projects locality. Every specifications.2 A pursuant fails specified contracting officer may withhold so much accrued payments considered necessary difference paid. added Aug. 30, 1935, 49 4 1012, 276a-2,3 authorizes Comptroller General mechanics. 5 Should withheld funds prove insufficient reimburse them "the intervention sureties conferred law persons furnishing labor materials." Laborers contains themselves bring August 24, 793, 270a et seq. (1976 ed. Supp. III), protection supplying materials contracts.4 at least stipulated terminated debarred all period three years.5 6 Pursuant Reorganization Plan 14 1950, U.S.C.App., p. 746, (Secretary) issued regulations designed "assure coordination enforcement" some related statutes.6 See 29 CFR Parts 5, 7 (1980).7 turn, have detailed concerning applicability they let. See, e. g., 41 Subpart 9-18.7 (1979) (Department Energy). agency initial responsibility determining particular A. Thieblot, 31 (Labor Relations Public Policy Series Report Univ. Pa., 1975) (hereinafter Thieblot). If determine rate,8 ensure rate chosen inserted requests bids project, well any resulting contract. 5.5 (1980); 31-34. agency's coverage classification review. Prior award contractor, organization, appeal final project covered Department §§ 5.12 7.9 (1980).9 Disputes over proper workers provisions referred determination. 1-18.703-1(i) (1979); (1980). North Georgia Bldg. & C. T. U. Dept. Transp., 399 F.Supp. 58 (ND Ga. 1975). "interested person" Secretary's Wage Board Labor, provided review sought prior issue. 1.16 Part 40-43.10 II 8 Universities Research Association, Inc., not-for-profit consortium American universities. 1967, (AEC) facility located Kane Du Page Counties, Ill. Effective 1972, modified furnish personnel administer operate Laboratory. later assumed turn AEC's successors, Development Agency (ERDA) (DOE).11 9 At relevant times funding Laboratory supplied entirely through AEC. tracked AEC procurement regulations,12 rates compensation classifications employees; obtain approval adopting new employees making changes compensation. 10 Article XXXIII expressly contemplated use Act; any, procured subcontracts approved DavisBacon stipulations.13 letter dated January 23, 1968, Art. included understanding incorporate "[i]f presently unforeseen conditions" arose employees.14 Another letter, identical sent following modification 1972. App. 63. order implement XXXIII, committee officials designated specific necessary.15 11 1975, Stanley Coutu, Northern Illinois other more $5 million Respondent electronics technician September 25, until 1975. During time, compensated accordance schedules "technician" set forth Respondent's duties involved monitoring computers, providing assistance personnel, supervising accelerator operation, recordkeeping. He minor repairs malfunctioning equipment, assemble prefabricated items, assist connecting power sources experimental equipment. supervisors typically high-rated technicians, engineers, physicists. 12 complaint seven counts. alleged failed said Act." 4. second within purview terms "at legal applicable performed." Id., 6-7. remaining counts rested common-law bases, pendent jurisdiction asserted. 13 On October 8, dismissed respondent's cause "totally borne out" 22. court, however, denied petitioner's motion dismiss count claims. It relied Seventh Circuit's decision McDaniel 512 583 (McDaniel I), vacated remanded, 423 810, 96 20, 30 (1975), re-entered remand, 548 689 (1977) ), cert. denied, 434 1033, 98 765, 54 780 (1978). I held implied enforce contractor's commitment wages.16 reasoned interpreting left open possibility accordingly gave "leave show [AEC] respect [respondent] [petitioner's] direction, contract." 25. After discovery, moved judgment. support motion, submitted affidavit chief counsel "[n]o ever part incorporated [the] Contract." 31-32. noted "as concedes include specifications," found "[o]n present state clear 32-33. reviewing statutory regulatory framework concluded "it now parties." 34. dismissed, and, "in exercise discretion," ibid., declined assume state-law 15 Circuit case. 396 (1979). recognized tended disprove contract; determined, appropriate, "there evidence one arguably become operation law." 398. Reasoning opinions II, "if [petitioner] [Davis-Bacon Act] [respondent class] County F.2d, 399. rejecting alternative argument exhaustion remedies required, remand 402. 16 Because importance implied-right-of-action issue, we granted certiorari. 445 925, 100 1310, 63 757 III 17 Before us, makes two major arguments. contends courts do coverage, classification, Alternatively, enforced actions. conclude work,17 find unnecessary reach broader determinations.18 Similarly, decide creates stipulations.19 18 Relying McDaniel,20 argues relief available him, impli cation effectuate passing But Court's recent clear, statute ultimately 'one intent, t hinks improve enacted i nto law.' Touche Ross, 442 U.S., 575-576, S.Ct., 2488-89. W e each factors points Congres favor employe stipulations.21] 19 We language itself. Transamerica, 444 16, 245; 568, 2485. states amount contractors, "every stipulation" "not specifications." 20 previous face, workers." Binghamton Constr. Co., 347 171, 178, 74 438, 442, L.Ed. 594 (1954); Walsh Schlect, 429 401, 97 679, 686, 50 641 (1977). fact enactment end inquiry; instead, asked intended litigation. 17-18, 245-4622. consistently "where explicitly confer[s] include[s] plaintiff case." 690, 13, 1954, n.13, 560 Conversely, "would far reason infer remedy individual persons" Congress, rather drafting legislation "with unmistakable focus benefited class," instead framed general prohibition command agency. 690-692, 1954-55. individuals. Since funds," 1955,23 remedy. 21 Moreover, demonstrates context, others, "when wished remedy, knew how expressly." 572, 2487. Under "so payments" contract" then same "right intervention" materialmen. authorizing buttresses our remedy.24 B 22 result reach. "designed protect local standards preventing basing lower area." House Committee Education Legislative History 87th Cong., 2d Sess., (Comm. Print 1962) (Legislative History). Passage spurred economic conditions early 1930's, rise oversupply increased building programs, limited. 7; Elisburg, Protection 28 Lab.L.J. 323, 324 (1977); S.Rep.No.1445, 71st 3d (1931). words Representative Bacon, combat practice "certain itinerant, irresponsible cheap, bootleg labor, [who] going around throughout country 'picking' off contact here there." bill "simply give fair participate program." Cong.Rec. 6510 (1931).25 23 As originally 1931, $5,000 "construction, buildings" locality; disputes what given conclusively unable resolve controversy. original predetermination Secretary; establish mechanism.26 24 soon concluded, drafted inadequate. Discontent focused lack effective "postdetermination" wage. 2. Contractors called claiming put unexpected expense postcontract higher bids. Ibid.; Hearings H.R. al. before 72d 1st 12, 50-51, 54-55, 58, 65 (1932). movement divided most national leadership opposed predetermination. 75 12379 (1932) (remarks Rep. Ramspeck); 114, 116, 122-123. united, calling establishment mechanism. 122-123; Ramspeck). 25 1932, both Houses passed amendment penalties failure "stated 3847, Sess. bill, vetoed President. Veto Message, S.Doc.No. 134, succeeded adding current statute. 1011. 26 accompanying amendments significant respects. First, amended only abuses,27 know definitely advance submitting bid approximate costs be." S.Rep.No.1155, 74th (1935); H.R.Rep.No.1756, (1935). Second, statute." 2; 2.28 defeat objectives. 27 1964 cuts position. 1964, H.R.6041, 88th amend fringe benefits definition wages. Pub.L.88-349, 78 238. H.R.6041 consideration, Goodell introduced judicial behest aggrieved person, laborer mechanic who claimed employer "refused Labor." H.R.9590, 2, (1964). substance H.R.9590 during debate H.R.6041. extended merits determinations, invoked rule nongermane amendments, refused consider Mr. Goodell's proposals.29 110 1194-1204 defeated merits, cannot flatly rejected proposition should Nor views treated determinative drafters preclude form Nonetheless, think proponents opponents contemplate differed permit Ibid. Further, although centered desirability permitting determinations,30 errs contending sole topic discussion, several speakers expressed view whatsoever.31 particular, Bell pointed out could seek " 'the installation equipment' type Davis-Bacon," "neither employers nor recourse except beg mercy prevail Congressman intercede."32 1201-1202. Thus, while dispositive, reinforces inappropriate implicitly contended here. asserts 1947, 61 84, 251 analysis 694, 87, 255(a), imposes 2-year limitation nonwillful "unpaid unpaid overtime compensation, liquidated damages" Fair Standards (FLSA), 201 seq., Walsh-Healey 35 1-year suits bond, 270b(b), limitations affirms existence excludes limited bond. agree reads too curtail numerous FLSA filed after Anderson Mount Clemens Pottery 328 680, 66 1187, 90 1515 (1946). Unexcelled Chemical Corp. 345 59, 61, 73 580, 581, 821 (1953). Although portal-to-portal Acts, see 93 2088 (1947) Sens. Donnell McGrath), chose statutes scope they, like FLSA, affected decision. H.R.Rep.No.71, 80th (1947); Sen. Donnell). bills recognize created incompatible Act.33 even longer actions nothing suggests believed lacking stipulations; contrary, Congress' concern foreclose provisions.34 C above, 1935 key features Act: means whereby recover carefully balances able "know be,"35 balance. 32 point out, contracting. cost-plus contracts, budgeting disrupted Fixed-price adversely affected, likely submit inflated take account specifications.36 challenges disrupt timely efficient performance might provoke jurisdictional unions representing nonconstruction workers.37 33 14. goal plan statutes; end, governing, among things, determinations. uniformity fostered short-lived free rulings. replies functions intervention, regardless assertion ignores define repair," "public works," "mechanics laborers."38 number commentators difficulty constitutes "construction" meaning particularly when context involving nuclear facility.39 Like agencies, successors developed guidelines 15, supra. Whatever allowing complex clearly substitute IV 34 sum, severely Nothing language, history, result. Accordingly, proceedings consistent opinion. ordered. reads: "(a) $2,000, Columbia party, repair, including painting decorating, geographical limits Union, Columbia, involves employment character city, town, village, civil subdivision State, performed, there; subcontractor site unconditionally often once week, without subsequent deduction rebate account, full amounts time payment, computed specifications, contractual relationship exist scale posted prominent easily accessible place work; received refunded subcontractors, agents." applies advertising proposals, otherwise applicable. Mar. 1941, 55 53; 21, 664, 276a-7. provides: hereby authorized directed due distribute list departments giving names firms whom disregarded obligations subcontractors. awarded appearing firm, corporation, partnership, association interest years elapsed date publication firms. "(b) aforesaid materials, defense accepted agreed accept voluntarily refunds." 1(a)(2) 270a(a)(2), read institution suit, person entering exceeding States" furnish, inter alia, material. 2(a) 270b(a), furnished material days. By Pub.L. 95-585. 92 2484, 1978, figure raised $25,000. 276a-1, stipulate terminate proceed event "has being paid." 3(a), supra, disqualification provision. "prescribe standards, regulations, procedures" observed directs "such investigations, compliance deems desirable." Presidential message retains primary investigating violations enforcing 746. 5.6 326-327 derives authority Copeland Anti-Kickback 482, 48 948, 276c, reasonable weekly statement preceding week. 89, 259, liable proves good-faith reliance "any written regulation, order, ruling, approval, interpretation" Secretary. sets procedures predetermining rate. submission payroll data. application definitions. 5.2 governing Labor's 7. either referring "area" published Federal Register or, area requesting Hour Division 1.5, 1.6 binding effect Department's disputed. Compare, Op.Atty.Gen. 488 (1960) (Secretary "laborers mechanics" statute), Comp.Gen. 565 (1961) (judgment Secretary). Cf. 43 Op.Atty.Gen.No.14 Service Contract Acts). There currently procedure Comp.Gen., 570-571 (omission cured awarded); 62 Proposed postaward incorporation them. 44 Fed.Reg. 77029 (Dec. 28, 1979) (proposed 1.6(f)). Energy, objected proposed asserting correctness 177, 441, (1954). Courts held, practices reviewable Administrative Procedure 701 Virginia ex rel. Commissioner, Transp. Marshall, 599 588, 592 (CA4 1979); Trades Council Goldschmidt, 621 697, 707-708 (CA5 1980). Fry Bros. HUD, 614 732, 733 (CA10 latter question. 1974, 88 1233, 42 5801 ; Organization 91 565, 7101 ed., III). For convenience, refer DOE CFR, provided: "1. This Association [petitioner], Such relative work." 55. understandings": arise best completion law. Director desire reviews Manager consideration resolution." 62. cover, alia "[c]ontracts servicing maintenance existing plant, machinery plant rearrangement, involve incidental alteration 9-18.701-51(a)(3); "[e]xperimental development processes devices, assembly, fitting, installation, testing, reworking, disassembly." 9-18.701-52(a)(4). "[t]he operational activities necessarily mean location classifiable outside coverage." procuring charged scrutinizing assignments "[c]ontractors whose forces neither actual 9-18.701-52(b). case, subcontracted, McDaniel, contained stipulations, defendant deny allegation. 584; 695. Defendant contravene plaintiff's allegation unavailable. 587. Assuming facts true, inasmuch proved ineffective, "we especially 'alert purpose,' quoting J. I. Case Co. Borak, 377 426, 84 1555, subsequently certiorari, reconsideration light Securities Investor Barbour, 421 412, 95 1733, 263 Cort Ash, 422 66, 2080, 45 (1975). reaffirmed earlier opinion, again stressing plaintiffs-appellants allege government appellee requirement, it." 695 (emphasis original). Thereafter, petitioned certiorari; text, certiorari denied. issue Appeals, that, therefore, properly viewed predetermined contentions merit. reading leads us today Appeals. answer complaint, affirmative claim because 17. opposition judgment, argued itself violation serve shield McDaniel. 32. ruling 'Court characterized 'whether absent showing provisions.' 33. stated: 'Our flows opinions,' which, noted, 'employees Act.' 397. '[C]omplications' 'only procedural posture' 'renewed attempt requirement.' unconvinced contention letters construing clause demonstrate precisely opposite. presents II. settled (Act stipulations) Glynn Capeletti Bros., 1309, 1312, 1980) (disapproving McDaniel). reasoning action, issuer note colloquy oral argument: 'QUESTION: Mann [attorney petitioner], just sure understand your Assume laboratory Davis-Bacon. And those-and people. supposing didn't about till gotten provided, client paid? 'MR. MANN: taken position all, provisions. common third-party beneficiary, there's real it's there. So we've go court. Did you 7th Circuit? 'MR.. [T]hat Circuit, us. raise That's correct. Or trial court? per se revise is, really address clause, privateright fundamental issues rate, court.' Tr. Oral Arg. 8-9. true filed. Given conclusion, fourth factor, i. e., "one traditionally relegated 78, 2087. 579-580, 2491 (BRENNAN, J., concurring) (when intent plaintiff, basis implying action"). 206 Investment Advisers 1940, 852, 80b-6, proscribes conduct, alter liabilities." 19, 247. noted: "Section concededly victims fraudulent prohibited. mere advisers' clients require behalf." 249. Cannon, Title IX Amendments 901(a), 86 373, 1681, shall, sex, discrimination educational program activity receiving financial assistance." "[t]here class, ban discriminatory conduct recipients institutions practices." 690-693, Fifth Capeletti, 1313-1314, distinguished version XI adopt: 'The grant enter education unless assurances satisfactory discriminate sex.' 1955. "obvious similarities" "Neither section cited focuses right—or duty—creating language. Instead, instances duty imposed contracts." 1314. remedies, expand subsume remedies." Railroad Passenger Assn. Passengers, 414 453, 458, 94 38 646 (1974). method infra. Bacon continued: "I post offices 'fair break' getting successful obtaining bid, employed, continue business community done. gets honest contractor." id., 6505 Welch); LaGuardia); 6512 Norton); Cochran); 6513 Briggs); 6513-6515 Granfield); 6515-6517 Kopp); 6517-6518 Fitzgerald); 6519 Condon); 6520 Zihlman). 16619 19-21 (1931) (statement Bacon); 5904 Senate Manufactures, 9, (1931); H.R.Rep.No.2453, eschew penalty deliberate. Secretary: "May say prompted draft suggest cent controversies hereafter settle endeavoring fix simple insertion accomplish desired results." 2-3 Reports strengthen considerably permitted dispute arisen course construction. meant stages unscrupulous defied orders officers formal adjudication requested underpaid rendered redress decisions retroactively." accompany Heard 280, 278, derived. established supply Zambetti Fence (CA2 1926); Strong 245 N.Y. 48, 156 N.E. (1927). Strong, Chief Judge Cardozo wrote unanimous court: "Congress materialmen determinate liability, inseparably linked assumes indispenable condition. Till then, rest 52, N.E., 93. beneficiaries breached promise 53, 93, stressed existed construed. Harry F. Ortlip Pa. Alvey Ferguson 223 893, 894-895 (ED Pa.1963); Gallaher Speck, Inc. Ford Motor 226 728, 731 (CA7 1955). anomalous file right. 1227-1229 1198 Griffin); 1200 Reps. Pucinski Broyhill); 1201 Fogarty); 1202 Skubitz). 1197 Goodell) ("The wage-fixing books parties get let judge tell law"); Broyhill) evades "our basic concept checks balances"). S.Rep.No.963, (1964), U.S.Code Cong. Admin.News 2339 (dissenting views) regulating completely excluded participation"). objectives 1960's, controversy missile sites constituted repair" Donahue, Contracts Comparison Coverage Minimum Provisions, Law Contemp.Prob. 488, 495 (1964); Cox, Defense Construction—Problems Statutory Coverage, 15th Annual NYU Conference 151 (1962). Missile Site Advisory Committee, report setting criteria BNA Daily Rep.No.200, E-1 (Oct. 1961). triggered disagreement contractors' associations trade unions, hand, manufacturers industrial other. Rep.No.51, pp. A-7 A-10 (Mar. 1962). response, minority members sponsor A-11. H.R.Rep.No.308, 23-29 (1963) views). 70, (1947), "to exempt liability wages." S.Rep.No.37, (1947). contrast, H.R.2157, well. H.R.2157 acceded wider bill; H.R.2157—which compatible 270b(b)—the retained 70. S.Rep.No.48, 50-51 recommended H.R.Conf.Rep.No.326, 13-14 enacted. 87. followed, aware erroneously Bacon-Davis Acts." unfamiliarity manifested bill. Senator Donnell, Senate, mentioned subcommittee hearings legislation. 2124 2250, 2253 McGrath); 2352-2353 Barkley). McGrath unfair workers, "administrative validity workman's frequently considerable length very run years." 2252 argues, McGrath's strongly apply explicit constitute representation "specified minima rates." 442. prevent bid. 36 Significantly, "feared inflate reserve postdeterminations." 37 1960's reveals inclusion dispute. 32, Work Stoppages Bases, Permanent Subcommittee Investigations Operations, 501, 584, (1961). cases G. L. Christian Associates 160 Ct.Cl. 11-17, 312 418, 424-427 (termination-for-convenience law), reargument 60-67, 320 345, 347-351, 375 954, 444, 314 (1963), misplaced, self-implementing. 39 26-27, 64-67, 143-146; 494-497 Price, Review Application Lab.Law 614, 619-621 (1963).

Category: 8