Explanation
This ordinance establishes new Chapter 377, Wage Theft Prevention and Enforcement, within Columbus City Codes. This ordinance also amends specific existing chapters of Columbus City Codes to align with the financial incentive and benefit revocation and recovery principles contained in new Chapter 377.
Title
To create Chapter 377, Wage Theft Prevention and Enforcement, within Columbus City Codes; and to amend Chapters 329, 4105, 4113, and 4562 of Columbus City Codes.
Body
WHEREAS, the City has an interest in ensuring that workers in the City, particularly those working on City-supported projects, contracts, and for tax-abated entities, are paid in compliance with all federal, state, and local laws; and,
WHEREAS, the Ohio Attorney General’s Office has previously estimated that more than 90,000 Ohio workers were illegally misclassified as independent contractors when they actually were employees, resulting in a cost to Ohio state and local government of hundreds of millions of dollars in lost unemployment compensation, workers’ compensations premiums, and state and local income taxes; and,
WHEREAS, when employers in the City of Columbus commit this type of wage theft or payroll fraud, their unlawful activity costs the City income tax revenue, negatively impacting the City’s ability to pay for basic services; and,
WHEREAS, wage theft and payroll fraud puts law abiding businesses at a competitive disadvantage and it is in the City’s interest to protect and support the majority of businesses that are following the law; and,
WHEREAS, the City reaffirms its commitment to protecting workers and law abiding businesses from wage theft and payroll fraud in contracts into which the City enters, in tax abatement, tax incentive, and tax credit agreements, and in issuing City building permits, commercial licenses, and business permits; and,
WHEREAS, payroll fraud refers to a business concealing its true tax liability or other financial liability to a gover...
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