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Appellate Court Says Charter Schools Not Subject to Prevailing Wage Laws


In a decision that will enable charter schools to devote more funds to their educational programs and teacher salaries by holding down construction and maintenance costs, the New York Supreme Court's appellate division unanimously held that charter schools are not subject to the state's "prevailing wage" laws.  The April 2 decision was issued in a case brought by Sonnenschein on behalf of pro bono clients the Foundation for a Greater Opportunity and the Carl C. Icahn Charter Schools.

The court held that charter schools, as education corporations established by private parties, are not among the public entities covered by the state's prevailing wage laws, which require the payment of union-level wages on public works projects.  The court also held that, contrary to the Department of Labor's argument, a recent amendment to those laws did not extend their scope to charter schools.  The Sonnenschein team included Richard M. Zuckerman (who argued the appeal), Peter Wolfson and Oscar Pinkas.