Sheet Metal Workers Int'l. Ass'n v. Duncan
Annotate this CaseA contractor entered into a public works contract to modernize a building at a Santa Clara County community college. Will was the subcontractor for the heating, ventilation, and air conditioning (HVAC) work. The subcontract provided that the project was to be built according to the specifications of the prime contract. The subcontract and general contract did not specify whether Will was required to fabricate any material necessary to complete the HVAC work. The subcontract required Will to “pay not less than the [applicable prevailing wage] to all laborers, workmen, and mechanics employed by him at the project site.” California’s prevailing wage law generally requires that workers employed on public works be paid the local prevailing wage for work of a similar character. (Lab. Code,1771.) Since 1991, Will has fabricated materials at a permanent, offsite facility it operates in Hayward. An employee of Will complained to the Department of Industrial Relations, Division of Labor Standards Enforcement alleging he should have been paid prevailing wages for work related to the project, involving the fabrication of sheet metal at the Hayward facility. DLSE issued a civil wage and penalty assessment. The Department of Industrial Relations reversed, in favor of Will. The trial court reversed. The court of appeal held that offsite fabrication is not covered by the prevailing wage law if it takes place at a permanent, offsite manufacturing facility and the location and existence of that facility is determined wholly without regard to the particular public works project.
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