§ 377.12 — Remedies

377.12 - Remedies.

(a) Whenever the Labor Commission renders any adverse determination against a covered entity for any violation(s) of Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09 or 377.10, or a written decision finding a violation of Chapter 2337 of the city codes, or if a covered entity or hiring party appeals any such adverse determination or written decision, whenever the final decision on appeal confirms the adverse determination or written decision, in whole or in part, the City may pursue any available legal, contractual or equitable remedies. (b) Upon rendering an adverse determination for any violation of Sections 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09 and 377.10 of the city codes, the Labor Commission may, where applicable, recommend to the City Attorney that the City pursue any of the following: (1) In the case of financial incentive agreements under the Community Reinvestment Area Act and Enterprise Zone Act, unilateral termination or modification of the financial incentive agreement, including unilateral reduction of the tax abatement by up to one hundred percent (100%) of the future benefit of the financial incentive agreement, as recommended by the Tax Incentive Review Council to Council following receipt of a report and recommendation from the Labor Commission; provided, however, that no tax abatement shall be terminated or modified to the extent that the tax abatement benefit is recaptured by a payment in lieu of tax, special assessment, community development charge or similar charge levied by the State, the City or another political subdivision to service bond or other debt to finance the design or construction of public infrastructure improvements or any other permissible improvements under the Ohio Revised Code. (2) In the case of financial incentive agreements under the Community Reinvestment Area Act and Enterprise Zone Act, recapture of subsidy and abatement benefits by up to one hundred percent (100%) of accrued value agreement as recommended by the Tax Incentive Review Council to Council following receipt of a report and recommendation from the Labor Commission; provided, however, that no tax abatement shall be recaptured to the extent that the tax abatement benefit is recaptured by a payment in lieu of tax, special assessment, community development charge or similar charge levied by the State, the City or another political subdivision to service bond or other debt to finance the design or construction of public infrastructure improvements or any other permissible improvements under the Ohio Revised Code. (3) Loss of low-interest rate commercial loan benefits; (4) Suspension or revocation of grants; provided, however, that no grant agreement shall be suspended or revoked if the grant funds the design or construction of public infrastructure improvements; (5) For any covered entity that has violated city codes and has an adverse determination under 377.01(a)(1)(A) arising from wage theft or payroll fraud either at a development location covered by a financial incentive agreement or relating to a City contract for goods or services, the City may deem the covered entity ineligible for future contracts or financial incentive agreements with the City until all victims of wage theft and payroll fraud have been paid in full; (6) As a condition of continuing an active or future contract with the City, requiring the posting of a bond or other form of insurance equal to one year of gross wages and a certified monthly payroll report for the duration of the City contract if the covered entity has previously received an adverse determination; provided, however, that this remedy shall not apply to financial incentive agreements; (7) For any covered entity that has violated city codes and has an adverse determination under 377.01(a)(1)(A) arising from wage theft or payroll fraud either at a development location covered by a financial incentive agreement or relating to a City contract for goods or services, the City may impose a stop work order until all victims of wage theft and payroll fraud have been paid in full and there is full compliance with the terms of this Chapter; provided, that a party to a financial incentive agreement may pay the victims of wage theft and payroll fraud on behalf of a covered entity performing work or services pursuant to, related to, or in furtherance of the financial incentive agreement, in which case the stop work order with respect to such work or services shall be rescinded; provided further, that in case of such payment on behalf of the covered entity, the covered entity shall remain ineligible for future contracts or financial incentive agreements until the party making the payment certifies to the City that it has been repaid by the covered entity for all payments made on behalf of the covered entity; (8) Permanent debarment for City contracts. (c) Upon rendering a written decision finding a violation of Sections 2337.02, 2337.03, or 2337.04 of the city codes, the Labor Commission may provide the impacted freelance worker with contact information for community legal services for consultation and review.

(Ord. No. 2401-2024, § 1, 9-16-2024)