Division of Lab. Stds. Enforcement v. Ericsson Information Systems, Inc

In Division of Lab. Stds. Enforcement v. Ericsson Information Systems, Inc. (1990) 221 Cal.App.3d 114, a contract between the University of California, San Diego and a contractor for installation of a telephone system required the contractor to pay prevailing wages. (Ericsson, supra, 221 Cal.App.3d at p. 120.) However, because no prevailing wage rate had been determined for communications technicians who worked on the project, the Division of Labor Standards Enforcement (DLSE) applied the rate that had been determined for "inside wiremen," the classification that DLSE deemed to be the most similar to communications technicians. (Id. at p. 121.) The contractor contended the DLSE's policy of applying a similar classification to workers who were not covered by a published classification constituted a rule subject to the notice and hearing requirements of the APA. (221 Cal.App.3d at p. 127.) The Ericsson court agreed that the DLSE's policy was a rule that "should be promulgated under the APA." (Ericsson, supra, 221 Cal.App.3d at p. 128.) The court concluded the DLSE's policy was not "a step in the process of prevailing rate determinations so as to be exempt from the APA ... ." (Ibid.) Rather, the Ericsson court decided that the policy created "a standard for the application of already established rates, to cover a situation not addressed in the statute or regulations ... ." (Ibid.)