State, Bus. & Indus. v. Granite Constr. Co.

• Decision Date: 13 February 2002
• Docket Number: No. 36881.,36881.
• Citation: 118 Nev. 83,40 P.3d 423
• Parties: The STATE of Nevada, DEPARTMENT OF BUSINESS AND INDUSTRY, OFFICE OF the LABOR COMMISSIONER; and Terry Johnson, in His Capacity as Labor Commissioner of the State of Nevada, Appellants, v. GRANITE CONSTRUCTION COMPANY, Respondent.
• Court: Nevada Supreme Court

40 P.3d 423

118 Nev. 83

The STATE of Nevada, DEPARTMENT OF BUSINESS AND INDUSTRY, OFFICE OF the LABOR COMMISSIONER; and Terry Johnson, in His Capacity as Labor Commissioner of the State of Nevada, Appellants, v. GRANITE CONSTRUCTION COMPANY, Respondent.

No. 36881.

Supreme Court of Nevada.

February 13, 2002.

Frankie Sue Del Papa, Attorney General, and Dianna Hegeduis, Deputy Attorney General, Carson City, for Appellants.

Bible Hoy & Trachok and Mark J. Lenz, Reno, for Respondent.

Dennis A. Kist & Associates and David R. Ford, Las Vegas, for Amicus Curiae International Brotherhood of Teamsters Local 631.

Elizabeth Nadeau, Washington, D.C., for Amicus Curiae Operating Engineers and Teamsters.

Levy, Stern & Ford and Lewis N. Levy, Los Angeles, California; Sherman, Dunn, Cohen, Leifer & Yellig, Washington, D.C., for Amicus Curiae Building and Construction Trades Department, AFL-CIO, Operating Engineers and Teamsters.

McDonald Carano Wilson McCune Bergin Frankovich & Hicks LLP and Paul J. Georgeson, Reno, for Amicus Curiae Associated General Contractors.

Michael E. Langton, Reno, for Amicus Curiae Building and Construction Trades Council of Northern Nevada.

Neil Ditchek, Washington, D.C., for Amicus Curiae International Brotherhood of Teamsters.

Before the Court En Banc.

OPINION

PER CURIAM.

This appeal involves the interpretation of NRS 338.040, Nevada's prevailing wage law. Specifically, we are asked to determine the meaning of the phrase "at the site of the work." The Labor Commission interprets the phrase to include locations other than the actual place where a public works project is situated. The district court, in a petition for judicial review proceeding, found that the phrase is limited to the actual physical location of the public project being constructed. We conclude that the phrase "at the site of the work" can include the transportation of materials from the remote location where they are assembled to the main public project construction site. We therefore reverse the order of the district court granting the petition for judicial review and remand this matter to the district court.

FACTS

In 1997 and 1998, the Nevada Department of Transportation (NDOT) awarded Granite Construction Company, a general contractor engaged in the construction of public works, three separate road construction contracts: (1) Contract No. 2829 near Emigrant Pass, Nevada; (2) Contract No. 2886 near Battle Mountain, Nevada; and (3) Contract No. 2949 near Trinity, Nevada. The construction work on these projects consisted of building and resurfacing portions of the state highway system.

The contracts provided that Granite could either manufacture the aggregate for the highways from pits leased by the State ("borrow pits") or purchase the aggregate from independent third-party suppliers. Granite ultimately used three borrow pits. Suzie Creek Pit No. EL81-01, used for the Emigrant Pass project, was located approximately five miles from the nearest end of that project. Pit No. HU83-06, used for the Battle Mountain project, was located approximately four miles from the nearest end of the project. Finally, Pit No. CH30-02, used for the Trinity project, was located approximately fifty-six miles from the nearest end of that project.

Borrow pits contain raw material that Granite processed to produce aggregate meeting the contract specifications. Because Granite needed to process the raw material, it was not charged for the use of the pits. The State of Nevada had acquired rights to use the pits for state projects in general. Thus, none of the pits was solely or exclusively dedicated to the road construction projects in this case.

As part of the projects, Granite subcontracted with several trucking companies to haul the processed materials for the road construction projects from the pits to the projects. At the pits, Granite employees would crush the raw material, load and weigh the dump trucks, and provide the drivers with a "load slip." The drivers would then drive four, five, or fifty-six miles to their respective projects. Upon arrival, a Granite employee would direct the driver to the desired location and operate the dump control apparatus on the truck to unload the materials. The Granite employee would then direct the truck driver to move forward as the material was deposited on the roadbed. The drivers generally would not get out of their trucks at the construction site and, once the current load was laid, the drivers would return to the pits for another load.

Although it paid the prevailing wage to its employees at the pits, Granite did not pay the prevailing wage to the truck drivers.¹ Eventually, NDOT learned that Granite was not paying the truck drivers the prevailing wage. As a result, NDOT withheld payment of approximately $225,000.00 on the contracts and notified the Labor Commission of the alleged violation. The Commission conducted an administrative investigation into Granite's activities on the project and eventually advised Granite to pay the truck drivers the prevailing wage.

Granite then petitioned the Labor Commission for a declaratory order, asserting that an aggregate material source is not "at the site of the work" for purposes of NRS 338.040. The matter was assigned to a hearing officer who concluded that the truck drivers were entitled to the prevailing wage under NRS 338.040 because the borrow pits were part of the "site of the work" and because the truck drivers were necessary to the execution of the contracts.

Granite filed a petition for judicial review, which the district court granted after concluding that the truck drivers were not employed "at the site of the work" and were therefore not entitled to the prevailing wage.

DISCUSSION

The question before this court is one of statutory construction, namely, the meaning and scope of NRS 338.040, Nevada's prevailing wage law. Questions of law are reviewed de novo.² "[A] reviewing court may undertake independent review of the administrative construction of a statute."³

Nevada's prevailing wage law guarantees prevailing wages to mechanics, workers and laborers in the performance of public work.⁴ Also referred to as the "Little Davis-Bacon Act" after its federal counterpart,⁵ NRS 338.040 specifies who is entitled to receive prevailing wages.⁶ Specifically, the version of NRS 338.040 in effect in 1999⁷ provided: "Workmen employed by contractors or subcontractors or by public bodies at the site of the work and necessary in the execution of any contract for public works are deemed to be employed on public works."⁸

To determine the scope of Nevada's prevailing wage law, we first look to the relevant statutory language. It is well established that when the language of a statute is plain and unambiguous, a court should give that language its ordinary meaning and not go beyond it.⁹ However, if a statute is susceptible to more than one natural or honest interpretation, it is ambiguous, and the plain meaning rule has no application.¹⁰ When a statute is ambiguous, the intent of the legislature is the controlling factor in statutory interpretation.¹¹

NRS 338.040 does not specifically define the term "at the site of the work." The Labor Commission contends that the term must be read in conjunction with the words "necessary in the execution of any contract for the public works." Read together, the Labor Commission asserts that the statute encompasses construction work necessary to the public works project performed at locations other than the project site. Thus, "at the site of the work" includes all locations where workers perform work necessary to the execution of a public works contract, as well as transporting materials to and from such locations.

Granite asserts that the words "at the site of the work" connotes a clear geographical limitation on those entitled to compensation at the prevailing wage rate and restricts coverage to employees working on the physical site of the public work being constructed, in this case the highways.

We conclude that both are reasonable interpretations of the statute. Because the statute is susceptible to more than one honest interpretation, it is ambiguous, and we turn to legislative intent. As noted above, Nevada's prevailing wage law is derived from the federal Davis-Bacon Act. "When a federal statute is adopted in a statute of this state, a presumption arises that the legislature knew and intended to adopt the construction placed on the federal statute by federal courts. This rule of [statutory] construction is applicable, however, only if the state and federal acts are substantially similar and the state statute does not reflect a contrary legislative intent."¹² The Davis-Bacon Act, enacted by Congress in 1931, provides in pertinent part:

(a) The advertised specifications for every contract in excess of $2,000 to which the United States or the District of Columbia is a party, for construction ... or public works ... shall contain a provision stating the minimum wages to be paid various classes of laborers and mechanics... and every contract based upon these specifications shall contain a stipulation that the contractor or his subcontractor shall pay all mechanics and laborers employed directly upon the site of the work... [the prevailing wage].¹³

29 C.F.R. § 5.2(l), the regulation promulgated by the Secretary of Labor pursuant to the Davis-Bacon Act, defines the term "site of the work" for purposes of the Act as follows:

(1) The site of the work is the physical place or places where the building or work called for in the contract will remain; and any other site where a significant portion of the building or work is constructed, provided that such site is established specifically for the performance of the contract or project;

(2) Except as provided in paragraph (1)(3) of this section, job headquarters, tool yards, batch plants, borrow pits, etc., are part of the site of the work, provided they are

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