ABC’s Northern Ohio chapter secured another victory for merit shop contractors June 17 when the Supreme Court of Ohio ruled that the state’s prevailing wage statute only applies to workers whose work is performed directly on the site of a public improvement project.
In a 6-1 decision, the court held that a labor organization that obtains written authorization to represent one employee of a contractor on a public improvement project cannot rely upon that authorization to pursue violations of prevailing wage law on behalf of other employees on the project.
In the case, Sheet Metal Workers’ Union Local 33 filed a prevailing wage lawsuit in the Medina County Court of Common against Gene’s Refrigeration, Heating and Air Conditioning on behalf of an employee with the company. In the complaint, the union alleged that Gene’s had committed multiple prevailing wage violations on the project, including failing to pay the employee at the prevailing wage rate for hours he worked off-site fabricating duct work that was installed later on the project.
Gene’s Refrigeration won in the trial court, which granted a motion for summary judgment after finding that the off-site fabrication of building materials for a public works project was not subject to the prevailing wage requirements, and also that Local 33 did not have standing to file a prevailing wage claim against Gene’s, or to represent any other Gene’s employee who worked on the project.
The union appealed and the court of appeals reversed, concluding that Ohio’s prevailing wage law required prevailing wage payments to off-site employees, in particular, those who fabricate materials to be used on or in connection with a public work.
The Ohio Supreme Court reversed the appeal court ruling and ruled in favor of Gene’s Refrigeration.
For more information, contact ABC’s Northern Ohio chapter legal counsel Alan G. Ross or Nick A. Nykulak both with
Ross, Brittain & Schonberg, LPA, 216-447-1551.
To read the court case, click
here.