skip navigational linksDOL Seal - Link to DOL Home Page
Images of lawyers, judges, courthouse, gavel
September 23, 2008         DOL Home > OALJ Home > USDOL/OALJ Reporter
USDOL/OALJ Reporter

HARDAWAY CONSTRUCTION CO., INC., WAB No. 70-05 (WAB Feb. 29, 1972)


CCASE: HARDAWAY CONSTRUCTION DDATE: 19720229 TTEXT: ~1 [1] UNITED STATES OF AMERICA UNITED STATES DEPARTMENT OF LABOR WAGE APPEALS BOARD IN THE MATTER OF WAGE APPEALS BOARD The Wage Rates Applicable for Case No. 70-04 Power Equipment Operators under Wage Determination AJ-867 for Housing Project KY-47-2, Campbellsville, Taylor County, Kentucky, Hardaway Construction Company, Inc., Contractor DATED: February 29, 1972 Hardaway Construction Company, Inc., Nashville, Tennessee, PETITIONER APPEARANCES: Charles Hampton White, Esquire, Nashville, Tennessee for the Petitioner Thomas X. Dunn, Esquire, Washington, D. C. for the Building and Construction Trades Department, AFL-CIO George E. Rivers, Esquire, Counsel for Contract Wage Standards, Office of the Solicitor, and Counsel for the Assistant Administrator, Wage and Hour Division, U.S. Department of Labor [1] ~2 [2] Also listed under Appearance for or in support of the Petitioner: Mr. L. H. Hardaway, Jr., Hardaway Construction Company, Inc., Nashville, Tennessee Also Appearing: Mr. Will;am J. McSorley, Building and Construction Trades Department; Mr. G.E. McCoy, International Union of Operating Engineers; Mr. D. D. Danielson, United Brotherhood of Carpenters; Mr. Joseph A. Devine, Department of Housing and Urban Development; Hal E. Nelson, Esquire, Office of the Solicitor, U. S. Department of Labor; Peter F. Martin, Esquire, Executive Secretary, Wage Appeals Board. BEFORE: Oscar S. Smith, Chairman, Wage Appeals Board; and Stuart Rothman and Clarence D. Barker, Members. DECISION AND ORDER Although Housing Project KY-47-2 would obviously require their use, and although the Federal agency here involved (the Department of Housing and Urban Development or, for convenience, H.U.D.) apparently requested rates for power equipment operators, [2] ~3 [3] the Wage Determination Division of the Department of Labor failed to include them in Wage Determination AJ-867 issued October 3, 1969 for the subject housing project. Likewise, the schedule of classifications and wage rates included in the contract specifications for this job lacked any for power equipment operators. The Petitioner contends that, prior to December 19, 1969 when the housing contract was awarded it, representatives of Hardaway met with officials of H.U.D. and of the Municipal Housing Commission, City of Campbellsville (again, for convenience, referred to herein as the Local Housing Authority or L.H.A.), in the Atlanta Office of H.U.D. to discuss the rates for equipment operators and in particular a schedule of proposed classifications and wage rates presented by Hardaway based on rates Petitioner claims were actually paid and prevailing in rural Taylor County. Petitioner further contends that H.U.D. approved and accepted its proposed rates, although the record with respect to H.U.D.'s action in this regard appears otherwise. At any rate, Petitioner was awarded the contract, incomplete as it was as to operators, and from December, 1969 to May, 1970, when the operators were utilized on the job, weekly certified payrolls were duly submitted, showing payment at the rates for operators which Petitioner claims to have been preapproved. No [3] ~4 [4] objection was raised as to these rates by the Local Housing Authority or by H.U.D. during that entire performance period, nor have any employee complaints been made to date. Only after completion of the work involving operators, did H.U.D. and the Local Housing Authority advise the Petitioner that the rates paid were less than those required and that, consequently, it owed these men an additional $10,000. These agencies (H.U.D. and the L.H.A.) in their May, 1970 enforcement action did not abstract their operators' rates from the applicable Wage Determination incorporated into the contract; nor did they obtain them by following the classification and reclassification procedures of Regulations, Part 5. Rather, they simply took a schedule of Statewide-bargained rates from another Wage Determination, AJ-8810 issued months later for a project which may never have been awarded, and told Hardaway that these AJ-8810 rates were retroactively applicable to its contract. When the Petitioner appealed the above action, the matter was referred to the Wage Determination Division for review. For some reason, the then Administrator concluded that it was too late to reconstruct the wage patterns for Taylor County and, instead, concurred in the action taken by the L.H.A. and by the Atlanta office of H.U.D. [4] ~5 [5] On review of the entire record in this matter, including the oral and written testimony presented at the hearing held on October 7, 1971 and the data submitted within the 30-day period following the hearing, the Board finds as follows: In view of the fact that the Department of Labor occasioned this enforcement problem by failing to include operators in its Wage Determination; and also in view of the considerable confusion following thereafter, and especially the failure of the Federal agency as well as the Local Housing Authority involved to follow the classification and reclassification procedures of the regulations and of the contract provisions; the Wage Appeals Board concludes that it is incumbent on the Administrator, acting under both his wage predetermination and enforcement responsibilities, to make some showing that the Petitioner in fact was not paying the prevailing rates for operators in Taylor County at the time this contract was awarded. If unable to do so, under the circumstances here involved, the Board concludes that the matter should be disposed of by the Administrator taking a non-enforcement position in this case in accordance with procedures long recognized in cases of this type where the evidence of record is insufficient to support a finding of contract labor standards irregularities. [5] ~6 [6] ORDER: Unless the Administrator within a period not to exceed 30 days makes some showing that Petitioner Hardaway did not pay the operators on the subject job the actual prevailing rates for Taylor County, he shall dispose of this case by taking a non-enforcement position and by so advising the Department of Housing and Urban Development. SO ORDERED Oscar S. Smith, Chairman Stuart Rothman, Member Clarence D. Barker, Member [6]



Phone Numbers