ALBANY (AP) - A New York appeals court says charter schools' contracts for construction, renovation, repair and maintenance are not subject to a state labor law requiring payment of prevailing wage rates.

The Appellate Division, 3rd Department, of state Supreme Court is reversing trial courts and the state Labor Department's 2007 opinion that followed an amendment to the law.

According to the appeals-court ruling Thursday, the prevailing-wage provisions apply to contracts by public agencies or third parties either acting on their behalf or as beneficiaries.

The five justices ruled that the law limits application of the wage rule and does not specifically apply to private educational corporations such as charter schools, which hope to save money by negotiating less-costly contracts.