D.B. Clark III, ARB Nos. 98-106 (ARB Sept. 8,
1998)
U.S. Department of Labor Administrative Review Board
200 Constitution Ave, NW
Washington, DC 20210
ARB Case No. 98-106
DATE: September 8, 1998
In the Matter of:
D.B. CLARK III
In re: Wage Determination 94-2070, Rev. 7,
for Solano, Napa, and Sonoma Counties, CA,
affecting employees of Raytheon Training, Inc.
(formerly Hughes Training Inc.) at Travis AFB, CA
DECISION AND ORDER
Petitioner D.B. Clark III (Clark) works for Raytheon Training, Inc.
(Raytheon) as a flight simulator/instructor at Travis Air Force Base, California, pursuant to a
federal service contract subject to the Service Contract Act of 1965, as amended, 41 U.S.C.
§351 et seq. (SCA or Act) (1994). In July 1997 Clark submitted a request for
review and reconsideration of the $20.98 hourly wage rate applicable to his position as a flight
instructor, pursuant to 29 C.F.R. §4.56 (1998), arguing that the wage rate was based on a
1992 wage survey conducted by the Bureau of Labor Statistics (BLS) and no longer reflected
locally prevailing wage rates. Clark specifically challenged the Acting Administrator's failure to
update the wage determination applicable to the Travis AFB contract by using data from a 1994
BLS area wage survey.
In response to Clark's request, the Acting Administrator (Administrator)
made a commitment to modify the wage rate based on a newer 1996 BLS survey. On February
2, 1998, a modified wage determination was issued, increasing the wage rate for flight
simulators/instructors to $24.13/hr. The 1996 BLS survey data would have supported an even
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higher increase in the wage determination rate, but the new rate reflected the Wage and Hour
Division's policy of "capping" the wage increase for a job classification at 15 per
cent above the level found in the last wage determination issued. Clark was advised of the new
wage determination on or about March 4, 1998, and filed a petition for review by letter dated
March 11, 1998, asserting that the new wage determination rate for flight instructors still did not
reflect prevailing rates. Petition for Review (Petition) at 1.
Clark has not supplied any independent survey data relating to wages paid
to flight instructors in the locality, but relies entirely upon the same BLS survey data used by the
Wage and Hour Division. Thus, Clark's appeal is a direct challenge to the methodology used by
the Division in developing the flight instructor wage determination, specifically the Division's
application of the 15 per cent cap on increases for any job classification. While we find that the
Division's general use of the 15 per cent limit is a reasonable exercise of the Administrator's
discretion under present economic circumstances, we find that Clark's argument with regard to
the flight instructor/simulator position has merit in light of the particular facts of this case. For
the reasons discussed below, we grant the petition in part and remand this matter to the
Administrator for issuance of a new wage determination.
PROCEDURAL HISTORY
This case arises under the Service Contract Act and its implementing
regulations. 41 U.S.C. §351 et seq. (1994); 29 C.F.R. Parts 4, 8 (1998). On July
31, 1997, Clark wrote to the headquarters office of the Wage and Hour Division, U.S.
Department of Labor, requesting review and reconsideration of the $20.98/hr. "Flight
Simulator/Instructor (Pilot)" (flight instructor) wage rate found in Wage Determination
(WD) 94-2070 (Rev. 6), issued June 30, 1997. Administrative Record (AR) F, H. Clark works
as a flight instructor for Raytheon at Travis AFB, California, under an Air Force service
contract.1
1 At the time of his initial
inquiry, Clark's employer was Hughes Training, Inc. By the time the petition for review was
filed in this matter, the contract had been acquired by Raytheon Training, Inc.
2 The 1992 BLS survey
documents mean weekly earnings for the Computers Systems Analyst II of $835, with an
average work week of 39.8 hours. AR K p.2.
3 The 1994 BLS survey
documents mean weekly earnings of $951, with an average work week of 40 hours. AR J p.2.
4 In a May 1998 letter to
Congressman Frank Riggs, the Division explained that the 1994 BLS survey data was not used to
update the Computers Systems Analyst II position because "[t]he frequency of distribution
was skewed for the Computer Systems Analyst II. Therefore, the rate of $20.98 [based on the
1992 BLS survey] would have been retained." AR C.
5 Clark did not express any
concern regarding the wage rate for the Secretary IV job classification when submitting his
original request for review and reconsideration of the wage determination rate for the flight
instructor job classification. See AR 5. Because this issue was not addressed to the
Acting Administrator for consideration, as required by 29 C.F.R. §4.56, we find that
Clark's later challenge to the wage rate for the Secretary IV in WD 94-2070 (Rev. 7) is not
properly before the Board.
6 The earliest wage
determination found in the Administrative Record (WD 94-2070 (Rev. 6)) was issued in 1997. It
is unclear when the $20.98/hr. rate from the February 1992 BLS survey was first incorporated
into the wage determination applicable to Travis AFB, but we assume that the incorporation of
the $20.98 rate occurred soon after the BLS survey was released in June, 1992.