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Department of Labor & Industry v. Ganc

Citations: 729 A.2d 668; 1999 Pa. Commw. LEXIS 386

Court: Commonwealth Court of Pennsylvania; May 13, 1999; Pennsylvania; State Appellate Court

Narrative Opinion Summary

This case involves a protest filed by an apprentice sheet-metal worker against his employer for underpayment on public works projects in Pennsylvania, under the Pennsylvania Prevailing Wage Act. The worker alleged he was not paid the required prevailing wage as he was not part of an approved apprentice program. The Pennsylvania Prevailing Wage Appeals Board found that the Department of Labor and Industry erred by not holding a hearing on the protest, as mandated by the Act. The Department argued that hearings were not required for every protest, suggesting they had discretion. However, the court affirmed the Board's interpretation that the statutory language, specifically the use of 'shall,' imposes a mandatory duty to investigate and hold a hearing for each protest. The decision emphasized due process for both parties and clarified that while the Department could determine the nature of the hearing, it could not forgo the process altogether. The court dismissed concerns about resource burdens and elevated worker status, affirming the Board's order for the Department to investigate the protest and determine if there was an intentional underpayment.

Legal Issues Addressed

Discretion in Conducting Hearings

Application: The Board clarified that 'appropriate' refers to the nature of the hearing rather than its necessity, contradicting the Department's claim of discretion.

Reasoning: The Department's arguments against this interpretation include a claim that the term 'appropriate' allows for discretion regarding conducting a hearing; however, the Board clarifies that 'appropriate' pertains to the type of hearing rather than its necessity.

Due Process in Wage Protests

Application: The Board's interpretation ensures that both employee and employer receive due process in determining wage disputes.

Reasoning: Both employee and employer must receive due process, which is adaptable based on specific factors: the private interest affected, the risk of erroneous deprivation through current procedures, the potential value of additional safeguards, and the Government's interests, including administrative burdens.

Mandatory Hearings under Pennsylvania Prevailing Wage Act

Application: The court ruled that the Pennsylvania Prevailing Wage Act mandates the Department to conduct a hearing when a worker protests underpayment, affirming the Board's interpretation.

Reasoning: The Board interprets the Act to impose a mandatory duty on the Department to investigate all timely protests from workers claiming they were paid less than the prevailing wage. This investigation must include a hearing, with the Department determining its specific nature.

Statutory Interpretation of 'Shall' as Mandatory

Application: The term 'shall' in the statutory language of the Act is interpreted as mandatory, requiring the Department to hold a hearing for wage protests.

Reasoning: The key provision is that 'the Secretary shall provide for an appropriate hearing,' with 'shall' interpreted as mandatory based on recent case law unless the statute's language is ambiguous.