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Keywords

contractstatuteappealhearingcorporation
contractstatuteappealhearingcorporationrespondent

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G- Inc., Matter of

Facts

The Bath Volunteer Fire Department (BVFD) entered into a construction contract with R-J Taylor General Contractors for a new firehouse after the Village of Bath declined to build one. The Department of Labor (DOL) issued an opinion letter stating that the project was subject to the prevailing wage law. A hearing officer later determined that volunteer fire corporations were the 'functional equivalents' of municipal corporations, thus covered under the law. However, the Court of Appeals found that the BVFD did not meet the definition of a public entity under the law.

The Bath Volunteer Fire Department (BVFD) entered into a construction contract with R-J Taylor General Contractors for a new firehouse after the Village of Bath declined to build one. The Department of Labor (DOL) issued an opinion letter stating that the project was subject to the prevailing wage law. A hearing officer later determined that volunteer fire corporations were the 'functional equivalents' of municipal corporations, thus covered under the law. However, the Court of Appeals found that the BVFD did not meet the definition of a public entity under the law.

Issue

Whether the prevailing wage requirement of Labor Law 220 applies to a construction contract entered into by the Bath Volunteer Fire Department.

Whether the prevailing wage requirement of Labor Law 220 is applicable to a construction contract entered into by the Bath Volunteer Fire Department (BVFD).

Rule

The prevailing wage law applies to contracts involving specific public entities, including state, public benefit corporations, municipal corporations, or commissions appointed pursuant to law, as outlined in Labor Law 220.

The prevailing wage law covers contracts involving each of four specific public entities: the state, a public benefit corporation, a municipal corporation or a commission appointed pursuant to law (see Labor Law 220 [2]).

Analysis

The court analyzed the applicability of the prevailing wage law by determining that the BVFD, while a fire corporation, did not qualify as a public entity under Labor Law 220. The court rejected the 'functional equivalent' test previously applied by the DOL, emphasizing that the BVFD was not one of the specified public entities named in the statute. The court noted that the service agreements did not contemplate the construction of a new firehouse, further supporting the conclusion that the project was not a public work.

The court analyzed the applicability of the prevailing wage law by determining that the BVFD, while a fire corporation, did not qualify as a public entity under Labor Law 220. The court rejected the 'functional equivalent' test previously applied by the DOL, emphasizing that the BVFD was not one of the specified public entities named in the statute. The court noted that the service agreements did not contemplate the construction of a new firehouse, further supporting the conclusion that the project was not a public work.

Conclusion

The Court of Appeals reversed the Appellate Division's judgment, granted the petition, and annulled the Department of Labor's determination that the prevailing wage law applied to the firehouse construction project.

Accordingly, the judgment of the Appellate Division should be reversed, with costs, the petition should be granted and respondent's determination should be annulled.

Who won?

The petitioners, including the Bath Volunteer Fire Department and the contractors, prevailed because the court found that the prevailing wage law did not apply to their construction contract.

The petitioners, including the Bath Volunteer Fire Department and the contractors, prevailed because the court found that the prevailing wage law did not apply to their construction contract.

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