LABOR COMMISSION

Columbus City Codes tit. 3, ch. 377

in effect

Columbus City Codes § 377.01 Definitions.

377.01 - Definitions. (a) (1) "Adverse determination" means the following: (A) so long as it is not subject to appeal or contestation, a final adjudication by a court of competent jurisdiction, a final action by a state or federal governmental agency, or a final adjudication by arbitrator or arbitral body of competent jurisdiction that a covered entity has committed wage theft or payroll fraud, including, but not limited to, an administrative merit determination, arbitration award or decision, civil judgment, or criminal conviction; or (B) so long as it is not subject to an appeal, a final determination by the Labor Commission that a covered entity has violated Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes. (2) If the covered entity appeals or contests the final adjudication, final action, or final determination, the adverse determination becomes effective whenever that initial adjudication, action, or determination, in whole or part, is affirmed on appeal or after the contest, or the appeal or contest is denied. (3) A settlement agreement or other agreement entered into by a covered entity to cure or compromise any allegations of wage theft or payroll fraud so as to resolve the matter prior to the issuance of an adverse determination or while an appeal is pending shall not constitute an adverse determination. (4) A settlement agreement or other agreement entered into by a covered entity and the Labor Commission staff to cure or compromise any alleged violation of Section 377.03, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes so as to resolve the matter without a hearing on the merits before the Labor Commission shall not constitute an adverse determination so long as the settlement agreement is approved by the Commission. (5) Nothing in this Section shall be construed to permit a collateral attack on the jurisdiction of a court, state or federal governmental agency, or an arbitrator or arbitral body to avoid being placed on the adverse determination list. (6) No adverse determination shall issue under division (a)(1)(B) of this Section against a covered entity described in division (e)(2) or division (e)(3) of this Section if the covered entity proves that the contract or agreement that rendered it a covered entity failed to contain the information required by divisions (a) or (b) of Section 377.09 of the city codes. (7) For any covered entity that is a joint venture, "adverse determination" includes the adverse determinations of the covered entity as well as all persons comprising the joint venture. (b) "Adverse determination list" means the list, published by the Labor Commission and updated at least once every sixty (60) days, of persons that have received an adverse determination within the preceding three (3) years. (c) "Affiliate" of a covered entity means, for purposes of this Chapter, a person that directly or indirectly controls the covered entity, is controlled by the covered entity, or is under common control with the covered entity, and is engaged in business activities that are substantially similar to those of the covered entity. "Control," for purposes of this definition, means direct or indirect ownership or control of more than 50% of an entity. (d) "Construction contract" means an agreement entered into on or after the effective date of this Chapter pursuant to which a person promises to perform or performs any construction, improvement, renovation, remodeling, painting, alteration, erection, demolition, removal, digging, or drilling for a development or project, and expressly includes any off-site fabrication or assembly of components or materials if those components or materials are specifically fabricated or assembled for the development or project. (e) "Covered entity" means: (1) A person that, on or after the effective date of this Chapter, A. enters into a financial incentive agreement with the City; B. enters into a City contract for goods or services, including a construction contract; or C. registers or applies for renewal under the process described in City Codes Section 3905.01; (2) A contractor of a covered entity as described in division (e)(1)(A), along with any subcontractor of the contractor, or a subcontractor of a higher-tiered subcontractor of the contractor that, any time on or after the effective date of this Chapter and during the term of the financial incentive agreement, enters into a construction contract pursuant to, related to, or in furtherance of the financial incentive agreement or enters into an agreement to provide janitorial, maintenance, repair, property management, or landscaping services at the development location covered by the financial incentive agreement. (3) A contractor of a covered entity as described in division (e)(1)(B), a subcontractor of the contractor, or a subcontractor of a higher-tiered subcontractor of the contractor that, on or after the effective date of this Chapter, enters into an agreement to perform work or services pursuant to or in satisfaction of a City contract for services, including a construction contract. (4) No person shall qualify as a covered entity solely because it contracts with a covered entity as described in division (e)(1)(A) to lease space at a development location covered by a financial incentive agreement. (f) "Employee" means an individual meeting the criteria for an employee under the parameters of the right to control test established by the United States Internal Revenue Service, or any successor test. (g) "Financial Incentive Agreement" means any contract or other agreement entered into on or after the effective date of this Chapter between the City and a covered entity by which the City provides a tax incentive, tax abatement, tax credit, or other financial incentive to the covered entity including, but not limited to, Community Reinvestment Act tax abatements, tax increment financing agreements, enterprise zone agreements, job incentive agreements, job creation and retention tax credits, downtown office incentive program payments, as well as any commercial loan, commercial grant, or conveyance of city-owned land for less than fair market value. (h) "Payroll fraud" means concealing an entity's true payroll tax liability or other financial liability to a government agency from government licensing, regulatory, or taxing agencies through misclassification of employees, failure to report or underreported payment of wages, or executing a cash transaction while failing to maintain proper records of reporting and withholding. (i) "Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, any other business entity, any alter ego of a person, or any successor of a person. (j) "Wage theft" means a violation of the Ohio Prompt Pay Statute, O.R.C. 4113.15; the Ohio Minimum Fair Wage Standards Act, O.R.C. Chapter 4111; Ohio's Minimum Wage Constitutional Amendment, Section 34a of Article II of the Ohio Constitution; O.R.C. Chapters 4109 or 4115; O.R.C. Sections 4113.17, 4113.18, 4113.52, or 4113.61; a violation of a law of another state or law of the United States that is substantially equivalent to any of the aforementioned Ohio statutes or the City wage requirement; or any successor to any of these laws. (k) "Independent contractor" means a person that meets the criteria for an independent contractor under the parameters of the right to control test established by the United States Internal Revenue Service, or any successor test. (l) "Payroll records" means payroll for each pay period exhibiting for each employee paid any wages, the employee's name, current address, the last four digits of the employee's social security number, number of hours worked each day during the pay period and the total for each week, the employee's hourly rate of pay, the employee's job classification, fringe payments, and deductions from the employee's wages. (m) "Successor" means any person that (i) acquires more than fifty percent (50%) of the assets of a predecessor, (ii) engages in substantially the same business as the predecessor; and (iii) has more than fifty percent (50%) of the same ownership as a predecessor. (n) "Predecessor" means any person that disposes of more than fifty percent (50%) of its assets to a successor that thereafter engages in the same business activity and has greater than fifty percent (50%) of the same ownership. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.02 Labor Commission.

377.02 - Labor Commission. (a) There is hereby created the Labor Commission, the duties and powers of which shall include hearing and determining whether an adverse determination should issue for a violation of Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes or for a breach of any contractual obligation to the City to assume the obligations of any provisions within this Chapter; recommending to the City Attorney penalties and remedies for a finding of non-compliance with Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes; approving settlement agreements to settle or compromise alleged violations of Section 377.03, 377.05, 377.06, 377.07, 377.08, 377.09, and 377.10 of the city codes where the covered entity has taken reasonable action to cure, remedy, or correct the action which formed the basis for the alleged violation; approving staff resolutions alleging non-compliance with Sections 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes; receiving complaints from residents, workers, and businesses regarding non-compliance with Sections 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, and 377.10 of the city codes; publishing and updating the adverse determination list; hearing and determining whether to grant a waiver or other relief pursuant to Section 377.02(o)-(r) of the city codes to a person with an adverse determination under Section 377.01(a)(1)(A); hearing and determining whether there has been a violation of Section 2337.02, 2337.03, or 2337.04 of the city codes; approving remedies and settlements to violations of Section 2337.02, 2337.03, or 2337.04 of the city codes; hearing and determining whether a written decision should be issued for violations of Section 2337.02, 2337.03, or 2337.04 of city codes; collecting and reporting on data related to any complaints under 2337.02, 2337.03, or 2337.04 of city codes; and participating in community education programs. (b) The Commission shall be composed of five (5) members. Upon appointment to the Commission, members shall serve for a term not exceeding three years, subject to 377.02(d) of this Section. Members may be reappointed to a new three year terms at the conclusion of their term. (c) Of the five (5) members comprising the Commission, two (2) members shall be appointed by the Mayor, two (2) members shall be appointed by Council, and the fifth member shall be appointed by the Commission with the advice and consent of the Mayor and Council. All member appointments shall be subject to a vote by Council, with a majority in the affirmative required for appointment. (d) The initial appointments to the Labor Commission shall occur no later than April 1, 2021, and the terms for the initial appointments shall vary to provide for staggered terms: (1) Two (2) members shall be appointed for a term not exceeding two years; (2) Three (3) members shall be appointed for a term not exceeding three years; (3) As provided in Section 377.02(b), upon expiration of their initial term, any member may be reappointed to a new term not to exceed three years. (e) The Commission shall hold public meetings, the intervals between which shall not exceed sixty (60) days. Records of all proceedings shall be maintained and open to the public. (f) The Commission shall receive staff support, to be provisioned by the Department of Finance, equivalent to no less than one (1) full-time employee. (g) Upon receipt of a complaint alleging that a covered entity has violated Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes, Commission staff shall conduct an investigation to determine if a violation has occurred. (1) During the course of the investigation, Commission staff may work with a covered entity to attempt to cure or compromise any alleged violation of Section 377.03, 377.05, 377.06, 377.07, 377.08, 377.09, or 377.10 of the city codes so as to reach a settlement agreement to resolve the matter. If so reached, Commission staff shall present the proposed settlement agreement to the Commission for approval and, if approved by the Commission, no adverse determination shall be made based upon the allegation. Notwithstanding anything in this Chapter to the contrary, the Labor Commission has the authority to settle any alleged violation of Section 377.03, 377.05, 377.06, 377.07, 377.08, 377.09, 377.10 prior to a final determination by the Labor Commission upon a hearing that a violation has occurred. (2) Where there are reasonable grounds to believe that a violation has occurred and either a settlement agreement has not been reached or the allegation pertains to a violation of Section 377.04, the matter shall be submitted to the Commission for a hearing to determine if a violation has occurred. (3) The covered entity shall be notified by Commission staff of a pending investigation where it is determined that there are reasonable grounds to believe that a violation has occurred. Commission staff shall provide a covered entity with notice that it may submit information to the Commission staff relevant to whether the covered entity has violated this Chapter. (h) If the Commission staff determines, based upon its investigation and after reviewing any information provided by the covered entity, that there are reasonable grounds to believe that a violation of Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09 or 377.10 has occurred, a hearing on the alleged violation shall be conducted by the Commission at a meeting open to the public. (1) The Commission shall provide the covered entity with notice of the hearing and a description of the subject(s) of the investigation at least thirty (30) days in advance of the public hearing. (2) The Commission shall provide the covered entity with an opportunity to submit documents, present information, call, examine, and cross examine witnesses, and be heard by the Commission during the public hearing and prior to a vote. (3) The Commission shall determine, based on all of the information presented, if a violation of Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09 or 377.10 of the city codes has occurred. (A) A majority vote by the Commission finding a violation shall result in finding of an adverse determination. (B) A covered entity may appeal to the Franklin County Court of Common Pleas pursuant to the procedures and requirements set forth in Ohio Revised Code Chapter 2506 or any successor thereto. (i) Upon receipt of a complaint alleging that a hiring party, as defined in Chapter 2337, has violated Section 2337.02, 2337.03, or 2337.04 of the city codes, Commission staff shall conduct an investigation to determine if a violation has occurred. (1) During the course of the investigation, Commission staff may work with a hiring party to attempt to settle and remedy any alleged violation of Section 2337.02, 2337.03, or 2337.04 of the city codes so as to reach a settlement agreement to resolve the matter. If so reached, Commission staff shall present the proposed settlement agreement to the Commission for approval and, if approved by the Commission, no written decision of a violation of Chapter 2337 shall be made based upon the allegation. Notwithstanding anything in this Chapter to the contrary, the Labor Commission has the authority to settle any alleged violation of Section 2337.02, 2337.03, or 2337.04 prior to a final determination by the Labor Commission upon a hearing that a violation has occurred. (2) The hiring party shall be notified by Commission staff of a pending investigation where it is determined that there are reasonable grounds to believe that a violation has occurred. Commission staff shall provide a hiring party with notice that it may submit information to the Commission staff relevant to whether the hiring party has violated Chapter 2337 of the city codes. (3) Where there are reasonable grounds to believe that a violation has occurred and a settlement agreement has not been reached, the matter shall be submitted to the Commission for a hearing to determine if a violation has occurred. (j) If the Commission staff determines, based upon its investigation and after reviewing any information provided by the hiring party, that there are reasonable grounds to believe that a violation of Section 2337.02, 2337.03, or 2337.04 has occurred, a hearing on the alleged violation shall be conducted by the Commission at a meeting open to the public. (1) The Commission shall provide the hiring party with notice of the hearing and a description of the subject(s) of the investigation at least thirty (30) days in advance of the public hearing. (2) The Commission shall provide the hiring party with an opportunity to submit documents, present information, call, examine, and cross examine witnesses, and be heard by the Commission during the public hearing and prior to a vote. (3) The Commission shall determine, based on all of the information presented, if a violation of Section 2337.02, 2337.03, or 2337.04 of the city codes has occurred. (A) A majority vote by the Commission finding a violation shall result in a written decision finding a violation of Chapter 2337. (B) A hiring party may appeal pursuant to Ohio Revised Code Chapter 2506 or any successor thereto. (k) The Commission shall provide written notice of its findings of facts and conclusions of law and any recommended penalties and remedies for any adverse determination based on a violation of Section 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09 or 377.10, or for any written decision finding a violation of Chapter 2337 of the city codes. (l) The Commission shall publish and update the adverse determination list at least once every sixty days. (m) The Commission may receive complaints from residents, workers and businesses regarding non-compliance with Sections 377.03, 377.04, 377.05, 377.06, 377.07, 377.08, 377.09, 377.10, 2337.02, 2337.03, and 2337.04 of the city codes for investigation. (n) The Commission may contract with a qualified not-for-profit organization to assist with investigations, education programs, and providing consultation and resources to freelance workers impacted by a violation of Chapter 2337. (o) The Commission shall issue a report annually to Council on its activities and whether it recommends the reduction or revocation of any financial incentives defined in this chapter due to violations of Chapter 377. (p) A member of the Commission may be removed by a majority vote of the rest of the members for inefficiency, neglect of duty, or malfeasance in office. Such a vote shall only be taken after the member is provided a copy of the charges and an opportunity to be heard in person or by defense counsel. (q) A covered entity, or any person that reasonably believes it may become a covered entity, may request a waiver from the Commission for an adverse determination which would result in its placement on the adverse determination list. A covered entity shall submit any such waiver request in writing in a manner and form prescribed by the Commission and shall include one or more of the following bases for the grant of said waiver: (1) There has been a bona fide change in ownership of the covered entity or an affiliate since the adverse determination occurred; (2) The covered entity or an affiliate of the covered entity has taken significant and verifiable remedial actions to prevent any future adverse determinations from occurring and has complied with the requirements of the determination forming the basis of the adverse determination, including, as applicable satisfaction of the reporting obligation under this Chapter, providing the Commission with documents and information required by this Chapter, and the payment of required back pay, interest, penalties, and fines; and (3) Other factors that the covered entity believes is relevant to the granting of a waiver. (r) The Commission shall consider all information submitted by a covered entity or person under 377.02(q)(1)-(3) and may request additional information from a covered entity or person to determine whether to grant a waiver. (s) The Commission may grant a waiver to a covered entity or person under 377.02(q)-(r) by removing a covered entity or person from the 377.02(l) list, reducing the time period a covered entity or person is on the adverse determination list, or allowing a covered entity or person a one-time waiver to enter into a financial incentive agreement with the City, receive a financial incentive provided by the City, enter into a City contract for goods or services, enter into a construction contract pursuant to, related to, or in furtherance of a financial incentive agreement, enter into an agreement to provide janitorial, maintenance, repair, property management, or landscaping services at a development location covered by a financial incentive agreement, or enter into an agreement with a covered entity to perform work or services pursuant to or in satisfaction of a City contract for services. (t) A supermajority vote of the Commission shall be required to grant a waiver to a covered entity under 377.02 (q)-(s). (u) If the Commission, in the course of performing its duties, discovers evidence or receives a complaint that a person has committed wage theft or payroll fraud, the Commission may refer the matter to the United States Department of Labor, the Ohio Department of Commerce, or any other appropriate entity for further investigation. (v) A City Department may request a waiver from the Commission on behalf of a covered entity that has an adverse determination which would result in its placement on the adverse determination list. The Commission may grant the waiver if the City Department demonstrates that the inability of the City Department to contract with said covered entity would result in serious disruption to the efficient and orderly operations of the City or the covered entity is a sole source provider of goods or services that are necessary for the efficient and orderly operations of the City. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.03 Ineligibility of a covered entity.

377.03 - 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)

Columbus City Codes § 377.04 Covered entity prohibited contracting.

377.04 - Covered entity prohibited contracting. (a) No covered entity shall enter into a construction contract pursuant to, related to, or in furtherance of a financial incentive agreement, an agreement for janitorial, maintenance, repair, property management, or landscaping services for the development location covered by a financial incentive agreement, or an agreement pursuant to or in satisfaction of a City contract for services, including construction contracts, with a person on the adverse determination list. (b) For purposes of determining whether a covered entity has violated this Section, the date of the final execution of an agreement or a contract between a covered entity and a person on the adverse determination list shall be used to make such a determination by the Commission. (c) A final determination by the Commission that a covered entity has violated division (a) of this Section shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (d) Nothing contained in this Section shall limit the reporting or disclosure obligations of a covered entity under this Chapter. (e) Nothing contained in this Section shall affect the applicability of other provisions of this Chapter that result in ineligibility and penalties. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.05 Covered entity continuing reporting obligations

377.05 - Covered entity continuing reporting obligations (a) Continuing obligations - financial incentive agreements. (1) A covered entity that is party to a financial incentive agreement with the City shall have a continuing obligation to provide the City with a sworn statement describing any adverse determination against the covered entity related to the development covered by the financial incentive agreement no later than thirty (30) days after the adverse determination. The reporting obligation remains in effect for the duration of the financial incentive agreement. (2) A covered entity that is a party to a financial incentive agreement with the City shall have a continuing obligation to report any adverse determination known to the covered entity against any other covered entity that performs work or services pursuant to a construction contract pursuant to, related to, or in furtherance of the 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 only if the adverse determination is related to the development covered by the financial incentive agreement no later than thirty (30) days after learning of the adverse determination. The reporting obligation remains in effect for the duration of the agreement between the covered entity that is a party to the financial incentive agreement and the contractor, or for the duration of the financial incentive agreement, whichever is earlier. (3) A covered entity that is a contractor of a covered entity that is a party to a financial incentive agreement with the City shall provide the City with a sworn statement detailing any adverse determination known to the contractor against the contractor, any subcontractor of the contractor, or any subcontractor of a higher-tiered subcontractor that performs work or services pursuant to a construction contract pursuant to, related to, or in furtherance of the financial incentive agreement or an agreement to provide janitorial, maintenance, repair, property management, or landscaping services at the development location covered by the financial incentive agreement only if the adverse determination is related to the development covered by the financial incentive agreement no later than thirty (30) days after learning of the adverse determination. The reporting obligation remains in effect for the duration of the agreement between the covered entity that is a party to the financial incentive agreement and the contractor, or for the duration of the financial incentive agreement, whichever is earlier. (4) A covered entity that is a subcontractor of a contractor of a covered entity that is a party to a financial incentive agreement with the City or a subcontractor of a higher-tiered subcontractor shall provide the City with a sworn statement detailing any adverse determination known to the subcontractor against the subcontractor or any subcontractors that perform work or services pursuant to 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 the financial incentive agreement only if the adverse determination is related to the development covered by the financial incentive agreement no later than thirty (30) days after learning of the adverse determination. The reporting obligation remains in effect for the duration of the agreement between the contractor of the covered entity that is a party to the financial incentive agreement with the City and the subcontractor, or the subcontractor and the higher-tiered subcontractor of the contractor, as the case may be, or for the duration of the financial incentive agreement, whichever is earlier. (b) Continuing obligations - City contracts. (1) A covered entity that enters into a City contract for goods or services, including a construction contract, shall have a continuing obligation to provide the City with a sworn statement describing any adverse determination known to the covered entity against the covered entity relating to the City contract for goods or services no later than thirty (30) days after learning of the adverse determination. The reporting obligation remains in effect for the duration of the contract for goods or services. (2) A covered entity that enters into a City contract for services, including a construction contract, shall have a continuing obligation to report any adverse determinations known to the covered entity against other covered entities that perform work or services pursuant to or in satisfaction of the contract for services no later than thirty (30) days after learning of the adverse determination only if the adverse determination is related to the work or services performed pursuant to or in satisfaction of the City contract for services. The reporting obligation remains in effect for the duration of the City contract for services or for the duration of any agreement between the covered entity that enters into the City contract for services and the contractor, whichever is earlier. (3) A covered entity that is a contractor of a covered entity that enters into a City contract for services shall provide the City with a sworn statement detailing any adverse determination known to the contractor against the contractor, any subcontractor of the contractor, and any subcontractor of a higher-tiered subcontractor of the contractor that performs work or services pursuant to or in satisfaction of the City contract for services no later than thirty (30) days after learning of the adverse determination only if the adverse determination is related to the work or services performed pursuant to in satisfaction of the City contract for services. The reporting obligation remains in effect for the duration of any agreement between the covered entity that enters into the City contract for goods or services and the contractor, or the City contract for services, whichever is earlier. (4) A covered entity that is a subcontractor of a contractor of a covered entity that enters into a City contract for services, or a subcontractor that contracts with a higher-tiered subcontractor that performs work or services pursuant to or in satisfaction of a City contract for services shall provide the City with a sworn statement detailing any adverse determination known to the subcontractor against the subcontractor or any subcontractors no later than thirty (30) days after learning of the adverse determination only if the adverse determination is related to the work or services performed pursuant to in satisfaction of the City contract for services. The reporting obligation remains in effect for the duration of any agreement between the contractor of a covered entity that receives the City contract for and services and the subcontractor, or a subcontractor and a higher-tiered or other subcontractor of the contractor, or the City contract for services, whichever is earlier. (c) A final determination by the Commission that a covered entity has violated a provision of this Section shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.06 Vendor registration.

377.06 - Vendor registration. (a) A covered entity registering or applying for renewal under the process described in Section 3905.01 of the city codes shall disclose at the time of registration or application for renewal any adverse determination during the three years prior to the time of registration or application for renewal. (b) A final determination by the Commission that a covered entity has violated division (a) of this Section shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.07 Payroll inspection.

377.07 - Payroll inspection. (a) A covered entity that has entered into a financial incentive agreement with the City, or is a contractor or subcontractor pursuant to 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 must maintain payroll records for employees who perform work and services related to the development covered by the financial incentive agreement, and shall provide any such records to the Commission staff upon request within fourteen (14) business days of the request. A covered entity that has entered into a City contract for goods or services or an agreement to perform work or services in furtherance of a City contract for services must maintain payroll records for work and services performed by the covered entity's employees related to the City contract for goods or services or pursuant to or in satisfaction of the City contract for services and shall provide any such records to the Commission staff upon request within fourteen (14) business days of the request. The Commission staff may grant an extension to a covered entity based on a good faith demonstration of a hardship in providing said records in the prescribed time period. If a covered entity is performing work or services covered by O.R.C. § 4115.03 the Commission staff shall request payroll records from the City's prevailing wage coordinator. (b) A final determination by the Commission that a covered entity has violated division (a) of this Section by failing to provide requested records in a timely manner shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.08 Outside Investigations.

377.08 - Outside Investigations. (a) A covered entity is required to authorize any agency or other investigative body investigating a complaint of wage theft or payroll fraud to release to the Commission any and all related evidence, findings, complaints and determinations that are not privileged or confidential and that are subject to public disclosure under the laws pertaining to that investigation, and to authorize the City to inquire into the status of the investigation and the final determination to the extent the investigation and final determination are not privileged or confidential and are subject to public disclosure under the laws pertaining to that investigation. (b) A final determination by the Commission that a covered entity has violated division (a) of this Section shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.09 Declaration of reporting obligations.

377.09 - Declaration of reporting obligations. (a) A covered entity that has entered into a financial incentive agreement with the City or 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 shall include in solicitations, agreements, contracts, and subcontracts pertaining to the financial incentive agreement, construction contract pursuant to, related to, or in furtherance of the financial incentive agreement, or the agreement to provide janitorial, maintenance, repair, property management, or landscaping services at the development location covered by a financial incentive agreement a notice setting forth that any entity entering into the contract will be a covered entity pursuant to this Chapter and setting forth the reporting requirements, obligations to review the Commission list of contractors and subcontractors that received an adverse determination prior to entering into a contract or agreement, and penalties for non-compliance as set forth in this Chapter. (b) A covered entity that has entered into City contract for services, including a construction contract, or an agreement to perform work or provide services pursuant to or in satisfaction of a City contract for services, shall include in solicitations, agreements, contracts, and subcontracts pertaining to the City contract for services a notice setting forth that any entity entering into the contract will be a covered entity pursuant to this Chapter and setting forth the reporting requirements, obligations to review the Commission list of contractors and subcontractors that received an adverse determination prior to entering into a contract or agreement, and penalties for non-compliance as set forth in this Chapter. (c) The City shall include in financial incentive agreements a provision specifying that the party entering into the financial incentive agreement is a covered entity subject to this Chapter. (d) The City shall include in requests for proposals, requests for qualifications, bidding documents, and contracts for goods and services a notice provision setting forth that the party that enters into the applicable City contract or registers or applies for renewal under the process described in City Code Section 3905.01 is a covered entity subject to this Chapter. (e) Covered entities must post a conspicuous notice at all covered locations and development sites indicating that the location or development site is subject to this Chapter as administered by the Commission for the duration of any construction at the covered location or development site if the covered entity is performing work or services pursuant to, related to, or in furtherance of a financial incentive agreement or a City construction contract. The notice shall include contact information for the Commission. After the construction is complete, covered entities shall be required to post a conspicuous notice only if required pursuant to another law to maintain a conspicuous notice and only if there are any outstanding contract(s) pursuant to which the contract counterparty is a covered entity subject to this Chapter. (f) The City shall produce a posting and make it available to all covered entities which shall satisfy the notification requirements of division (c) of this Section. (g) A final determination by the Commission that a covered entity has violated division (a), (b), or (c) of this Section shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.10 Use of Independent Contractors.

377.10 - Use of Independent Contractors. (a) If a covered entity utilizes independent contractors to perform work or services on behalf of the covered entity pursuant to, related to, or in furtherance of a financial incentive agreement, including pursuant to a construction contract or any agreement for janitorial, maintenance, repair, property management, or landscaping services at the development location covered by the financial incentive agreement, or under, pursuant to, or in satisfaction of a City contract for services, including a City construction contract, the covered entity shall provide the following information to the Commission: (1) The total number of employees and the total number of independent contractors that are covered entities and the total number of independent contractors that are individuals utilized by the covered entity to perform work or services pursuant to, related to, or in furtherance of the financial incentive agreement, including pursuant to a construction contract or any agreement for janitorial, maintenance, repair, property management, or landscaping services at the development location covered by the financial incentive agreement, or pursuant to or in satisfaction of a City contract for services, as applicable; provided, however, that in the case of a covered entity that is party to a financial incentive agreement with the City, or that enters into a construction contract or any agreement for janitorial, maintenance, repair, property management, or landscaping services at the development location covered by the financial incentive agreement, this requirement shall apply only with respect to employees and independent contractors that perform construction, janitorial, maintenance, repair, property management, or landscaping services at or for the development location covered by the financial services agreement; (2) For all independent contractors who are individuals identified by the covered entity pursuant to division (a) of this Section, the covered entity shall provide: (A) A description of the work or services to be performed; (B) The rate and frequency of pay; (C) The duration of the work or services; (D) A description of benefits provided to the independent contractor(s), if any, and the costs paid for the benefits by the covered entity and/or the worker(s); (E) A written description and any supporting documents or records indicating the following: (i) the nature and degree of the covered entity's control; (ii) the permanency of the worker's relationship with the covered entity; (iii) the amount of the worker's investment in facilities, equipment or helpers; (iv) the amount of skill, initiative, judgement or foresight required for the worker's services; (v) the worker's opportunity for profit and loss; (vi) the extent of integration of the worker's services into the covered entity's business; (vii) other information the covered entity considers relevant to whether the worker is properly classified as an independent contractor. (b) In circumstances under which independent contractors subcontract to other independent contractors, independent contractors of covered entities shall provide to covered entities the same information with regard to said subcontractors as defined in Section 377.10(a). A covered entity receiving such a report shall provide a copy to the Commission within seven (7) days of receipt. (c) All reports required under this Section shall be provided to the Commission no later than twenty one (21) days following the date on which the independent contractor commences work on behalf of the covered entity. (d) The Commission may contact employees and independent contractors and/or a covered entity for additional information, including payroll records, necessary or relevant to making the determination in division (e) of this Section. Upon request, a covered entity shall provide additional information requested by the Commission within fourteen (14) days. (e) If the Commission, or Commission staff reasonably determines that any worker(s) that a covered entity is required to provide reporting on pursuant to division (a)(1) of this Section may have been misclassified as an independent contractor, the Commission, or staff, may refer the worker(s) and/or the matter to the United States Department of Labor, the Ohio Department of Commerce, or any other appropriate entity for further investigation. (f) The Commission shall make forms available for providing information and reports related to the use of purported independent contractors. (g) A final determination by the Commission that a covered entity has violated any of the reporting provisions of this Section shall constitute an adverse determination and shall result in the covered entity being placed upon the adverse determination list. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.11 Rules and regulations.

377.11 - Rules and regulations. (a) The Commission shall develop rules and regulations for the following: (1) Review of financial incentive agreements and City contracts to ensure that provisions required by this Chapter are included. (2) Monitoring of financial incentive agreements and City contracts and the submission of required statements to ensure compliance with this Chapter, including reviewing complaints, referring complaints to an appropriate federal or state agency for investigation, and monitoring the outcome of complaints against covered entities for purposes of this Chapter. (3) Pursuing remedies, imposing sanctions and levying penalties for failing to timely submit reports and sworn statements required by this chapter, and setting fees for filing disclosures and statements required by this Chapter. (4) Protecting victims of wage theft and payroll fraud from retaliation or adverse action resulting from reports made pursuant to or required under this Chapter. (5) Publication and updates to the Commission list of persons that have received adverse determinations. (6) The processing and investigation by Commission staff of complaints made against covered entities for failure to comply with the provisions of Chapter 377. (7) The processing and investigation by Commission staff of complaints made against hiring parties of violations of Chapter 2337 of the city codes. (8) Permissible settlement authority and Commission approval process for staff resolution of allegations of violations of Section 377.03, 377.05, 377.06, 377.07, 377.08, 377.09, 377.10, 2337.02, 2337.03, or 2337.04 of the city codes. (b) The adoption and promulgation of any rules or regulations by the Commission shall comply with the provisions of Chapter 121.05 of city codes. (c) The Commission shall adopt bylaws governing the conducting of Commission business. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 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)

Columbus City Codes § 377.13 Effective Date.

377.13 - Effective Date. (a) The provisions of this Chapter will be effective January 1, 2021. (b) Notwithstanding anything to the contrary in this Chapter, this Chapter does not apply to (1) financial incentive agreements that are amendments to agreements entered into before the effective date of this Chapter unless those amendments expand the financial incentive provided, (2) construction contracts that are entered into pursuant to, related to, or in furtherance of agreements entered into before the effective date of this Chapter, or (3) financial incentive agreements or construction contracts that are entered into pursuant to, related to, or in furtherance of economic development agreements entered into by the City before the effective date of this Chapter. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.14 Incorporation in City contracts and financial incentive agreements.

377.14 - Incorporation in City contracts and financial incentive agreements. All City contracts and financial incentive agreements entered into on or after January 1, 2021 shall incorporate and require all parties to comply with Chapter 377 as a term of said City contract or financial incentive agreement. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.15 Community education and know your rights program.

377.15 - Community education and know your rights program. (a) The City and Commission shall partner with employers, labor organizations, and community organizations for the purpose of informing residents of their workplace rights under federal, state, and local law and to communicate the benefits of the Columbus Wage Theft Prevention and Enforcement provisions to businesses, employees, and communities. (b) The City and Commission shall also provide information regarding the protections for freelance workers as set forth in Chapter 2337 of city codes, including general information about the requirements of the chapter, complaint forms, and any other information or resources as determined relevant by Commission staff. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.16 Data Collection and Reporting.

377.16 - Data Collection and Reporting. The Commission staff shall collect and report on data regarding Chapter 2337 of city codes and the complaints filed under that Section, including but not limited to the following data collection and reporting requirements: (A) No later than six months after receiving a complaint against a hiring party, the Commission staff shall send the freelance worker a survey requesting additional information about the resolution of the freelance worker's claims. Such survey shall ask whether or not the hiring party ultimately paid any or all of the compensation the freelance worker alleged was due or if the matter was resolved in a different manner. Such survey shall clearly state that response to the survey is voluntary. (B) Commission staff shall collect and track information about complaints alleging violations of Chapter 2337. The information collected shall include, at minimum: (1) The hiring party alleged to have violated this chapter; (2) The freelance worker's occupation; (3) The Section of this chapter that was alleged to have been violated; (4) The monetary value of the contract; (5) The response or non-response from the hiring party to the Commission staff's inquiry; and (6) Information from a completed survey. (C) On an annual basis, Commission staff shall submit to the Office of the Mayor and City Council a report detailing all of the following regarding freelance worker protections: (1) The number of complaints received pursuant to this chapter; (2) The monetary value of the contracts referenced in the complaints; (3) The number of settlements and the average term of the settlements; and (4) Any other relevant information, as determined by the Commission staff. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.17 Just Pay fund.

377.17 - Just Pay fund. (a) There is hereby created the Columbus Just Pay Fund. The Fund shall be used solely for the purpose of paying expenses related to the administration of this chapter, expanding enforcement of wage and hour laws, and supporting community education on the rights of workers under wage and hour laws. (b) The Just Pay fund shall receive deposits transferred from the various funds of the city in an amount necessary to provide resources adequate to support the enforcement of the Columbus Wage Theft Prevention and Enforcement provisions. The amounts transferred from the various funds of the city into the Just Pay fund shall be calculated upon the number of purchase orders and purchase requisitions originating within each fund of the city, multiplied by a fixed dollar amount as determined by the Director of Finance and Management. (Ord. No. 2401-2024, § 1, 9-16-2024)

Columbus City Codes § 377.18 Severability.

377.18 - Severability. The invalidity of any section, clause, sentence or provision of this chapter shall not affect the validity of any other part of this chapter which can be given effect without such invalid part or parts. (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_CH377LACOFetched: 10/27/2026