Ineligibility of a covered entity.
Columbus City Codes § 377.03
in effect377.03 - Ineligibility of a covered entity.
(a) A person that intends to or reasonably believes that it may become a covered entity under this Chapter shall, prior to entering into any agreement that would render the person a covered entity, disclose to the Labor Commission in a manner and form prescribed by the Commission any adverse determination against the person, a predecessor of the person, or an affiliate of the person during the preceding three (3) years. If the adverse determination is based on the conduct of an affiliate or predecessor, the Labor Commission or its staff may request additional information concerning the relationship between the prospective covered entity and the affiliate or predecessor.
(b) Any person who discloses an adverse determination pursuant to Section 377.03(a) shall not enter into any agreement that would render the person a covered entity until after the next regularly scheduled meeting of the Labor Commission and thereafter only if the person is not disqualified pursuant to Section 377.03(e) and the Labor Commission has not ordered a hearing pursuant to Section 377.03(c).
(c) Upon disclosure of an adverse determination against an affiliate or predecessor, the Labor Commission staff shall review the information supplied by the prospective covered entity, including any information concerning the relationship between the prospective covered entity and the affiliate or predecessor, and if the staff determines after such review that is not probable that the prospective covered entity and affiliate are part of a single, integrated enterprise for employment purposes under the standard set forth in Section 377.03(d) or alter egos, or that it is not probable that the prospective covered entity was created by a de facto merger of a predecessor under the laws of the State of Ohio then the staff shall recommend to the Labor Commission that the prospective covered entity not be placed on the adverse determination list. If the staff determines after such review that it is probable that the prospective covered entity and affiliate are part of a single, integrated enterprise for employment purposes or are alter egos, or if the staff determines it is probable that the prospective covered entity was created by a de facto merger of a predecessor under the laws of the State of Ohio, or if the staff is unable to make a determination due to the insufficiency of the information provided by the prospective covered entity, then it shall recommend to the Labor Commission that a hearing is necessary to determine the if the prospective covered entity and affiliate are a single integrated enterprise for employment purposes pursuant to the standard set forth in Section 377.03(d) or are alter egos under Ohio law, or if the prospective covered entity was created by a de facto merger of a predecessor under the laws of the State of Ohio, as applicable.
(d) The Labor Commission shall have the authority to conduct an administrative hearing to determine by a preponderance of the evidence if the prospective covered entity and affiliate are a single integrated enterprise for employment purposes, taking into consideration the following factors: (1) interrelation of operations, (2) centralized control of labor relations, (3) common management, and (4) common ownership or financial control; if the covered entity is an alter ego of the affiliate under the laws of the State of Ohio; or the covered entity was created by a de facto merger of a predecessor under the laws of the State of Ohio.
(1) The Commission shall provide to the person or prospective covered entity notice of the hearing date, time, and location at least thirty (30) days prior to the hearing.
(2) If a majority of the Commission finds by a preponderance of the evidence that the prospective covered entity and affiliate are a single, integrated enterprise for employment purposes, that the prospective covered entity and affiliate are alter egos under the law of the State of Ohio, that the prospective covered entity was created by a de facto merger of a predecessor under the laws of the State of Ohio, or that the prospective covered entity failed to provide sufficient information responsive to specific requests by the Commission staff to allow the Commission to determine whether the prospective covered entity and affiliate are a single, integrated enterprise for employment purposes or alter egos, or if the prospective covered entity was created by a de facto merger of a predecessor, then the Commission shall create a written report setting forth its findings of fact and conclusions of law and ordering that the prospective covered entity be placed on the adverse determination list.
(3) If the Commission finds that the evidence presented failed to establish by a preponderance of the evidence that the prospective covered entity and affiliate are a single, integrated enterprise for employment purposes or alter egos, or that the prospective covered entity was created by a de facto merger of a predecessor, as applicable, then the Commission shall create a written report setting forth its findings of fact and conclusions of law and indicating that the prospective covered entity is qualified to enter into an agreement that would render it a covered entity.
(4) The final decision of the Commission may be appealed pursuant to the provisions of R.C. Chapter 2506 and any successors thereto.
(5) The prospective covered entity may at any time opt out of or otherwise discontinue the investigation and hearing provided for under this Section, but shall not be permitted to enter into any contract that would render it a covered entity pursuant to this chapter until at least three years following the adverse determination against the affiliate that triggered the hearing.
(e) A covered entity that is listed by the Commission on the adverse determination list is ineligible to enter into any financial incentive agreement with the City, to enter into a City contract for goods or services, including a construction contract, to enter into a construction contract pursuant to, related to, or in furtherance of a financial incentive agreement or an agreement to provide janitorial, maintenance, repair, property management, or landscaping services at the development location covered by a financial incentive agreement, or to enter into an agreement with a covered entity to perform work or services pursuant to or in satisfaction of a City contract for services, including a construction contract, for three (3) years from the date of the most recent adverse determination against the covered entity.
(Ord. No. 2401-2024, § 1, 9-16-2024)
Source: City of Columbus, City Codes and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/oh/columbus/codes/code_of_ordinances?nodeId=TIT3FITACO_CH377LACO_377.03INCOENFetched: 10/27/2026