Ohio cities no longer require contractors to hire local workers for public-improvement projects

By Marc Kovac | June 2, 2016 at 12:00a.m.

COLUMBUS

Cities will no longer be able to require contractors completing public-improvement projects to hire local workers, under legislation signed into law by Gov. John Kasich this week.

House Bill 180 passed on split votes in the Ohio Senate (23-10) and House (62-31) and will take effect in about three months.

Proponents say the law changes could help lower the costs of road and other projects. Opponents counter, however, that communities footing the bills for such projects should be allowed to require the hiring of local workers.

HB 180 prohibits communities from requiring contractors on public projects to employ a certain number or percentage of residents. It also bars awarding bonuses or giving preferential treatment to contractors who hire local workers.

The law changes affect state, county, township, city and other political subdivisions.

The Ohio Supreme Court ruled in 2009 that communities could not require their employees to live within their corporate limits.

Sen. Larry Obhof, R-Medina, said that residency requirements prevented employers and workers in his district from competing for government projects.

“Companies and workers from this district deserve fair treatment, and they are entitled to the same opportunities as residents of our major cities,” he said.

But Sen. Sandra Williams, D-Cleveland, said the bill will take away employment and training opportunities for local workers.

The Ohio Legislative Black Caucus had urged Kasich to veto the legislation, saying the changes would disproportionately hurt black residents in Cincinnati, Cleveland, Toledo and Akron.