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For purposes of this section:
(a) "Adverse determination" means:
(1) A final adjudication, not subject to appeal, by a court of competent jurisdiction, a final action by a state or federal governmental agency, or a final adjudication by an arbitrator or arbitral body of competent jurisdiction, including, but not limited to, an administrative merit determination, arbitration award or decision, civil judgment, or criminal conviction, that a contractor, subcontractor or recipient of assistance has committed wage theft or payroll fraud. If the person or 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 in part, is affirmed on appeal or after the contest, or the appeal or contest is denied.
(2) A settlement agreement or other similar agreement entered into by a person or entity related to any allegations of wage theft or payroll fraud to resolve the matter prior to the issuance of an adverse determination or while an appeal is pending shall not constitute an adverse determination.
(3) 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.
(b) "Adverse determination list" means a list published by the Law Department and updated every month, of persons or entities that have received an adverse determination within the preceding three years.
(c) "Applicable department" means the City department administering construction and improvement contracts or service contracts or the City department to which a person or entity applies for assistance.
(d) "Assistance" means any form of City financial assistance, except for financial assistance provided for the development, rehabilitation or other means of providing residential housing, that is awarded, renegotiated or renewed after the effective date of this chapter. Assistance covered by this chapter includes but is not limited to: grants; economic development loans; tax credits, incentives and abatements; subsidies; and bonds. For purposes of determining coverage under this chapter, financial assistance shall be valued to the extent the recipient of the assistance derives a monetary benefit from the City. For instance, loans shall be considered assistance only to the extent they are forgiven or discounted below the available market rate over the life of the loan. Tax credits, incentives and abatements shall be considered assistance to the extent of the tax reduction realized by the recipient. For purposes of this chapter, assistance does not include financial assistance which is received from another government or other entity with the City acting only as a conduit or fiscal agent for the funds, where the City exercises no control over the identity of any recipient or of the terms of the contract. Community development block grant funds are not considered conduit funds under this section and, to the extent they otherwise qualify, are included as assistance and are covered by this chapter.
(e) "Contract" means any construction or improvement contract and any service contract entered into pursuant to these Codified Ordinances.
(f) "Contractor" means any person or entity who enters into a construction or improvement contract or service contract with the City.
(g) "Construction or improvement contract" means any contract entered into pursuant to Charter or Chapter 109 of the Euclid Codified Ordinances.
(h) "City" means the City of Euclid and all City departments, divisions and offices.
(i) "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.
(j) "Person or entity" means any individual, proprietorship, partnership, joint venture, corporation, limited liability company, trust, association, or other entity recognized at law by the State of Ohio, and their successors, predecessors, affiliates, and assigns, who may employ individuals or enter into contracts with the City.
(k) "Recipient of assistance" means:
(1) Any person or entity who enters into one or more contracts with the City for assistance;
(2) Any person or entity that is a direct recipient of assistance.
(l) "Service contract" means any contract or subcontract between a person, business or corporation and the City of Euclid that primarily involves the furnishing of services to the City (as opposed to the purchase of goods), and shall be limited to the following categories of services: food service, waste management, automotive repair services, landscaping, towing contracts, building and maintenance services, clerical services, urban forestry, street maintenance and repair, and sidewalk maintenance and repair. This includes services performed on City-owned premises including the following City-owned locations: parking lots, municipal parks, recreational facilities, and City-owned buildings. Contracts that are primarily for the purchase of goods or other property are not considered service contracts for purposes of this chapter.
(m) "Subcontract" means any contract between a contractor and a person or entity to assist in performance of a contract; and a contract between a person receiving assistance and a person or entity to support the project or matter for which the person is receiving assistance.
(n) "Wage theft" means a violation of the Ohio Prompt Pay Statute, R.C. § 4113.15; the Ohio Minimum Fair Wage Standards Act, R.C. Chapter 4111; Oh. Const. Art. II, Sec. 34a; R.C. Chapters 4109 or 4115; R.C. §§ 4113.17, 4113.18, 4113.52 or 4113.61; or a violation of any substantially equivalent federal or state law; as any of these laws may be amended or superseded.
(Ord. 76-2023. Passed 7-17-23.)
(a) Any person or entity bidding on or making a proposal for a construction or improvement contract or a service contract, or applying for assistance, and any prospective subcontractors, shall disclose any adverse determinations occurring within the previous three years with bid documents or assistance application.
(b) A person or entity that has received an adverse determination within the previous three years from the due date of a bid or proposal for a construction or improvement contract or service contract, or application for assistance, shall not be eligible to enter into any contract, or an application for assistance, or a subcontract, for three years from the date of the last adverse determination, unless the person or entity receives a waiver pursuant to Section 112.04.
(Ord. 76-2023. Passed 7-17-23.)
(a) Any person employed on a contract or subcontract, who alleges that a violation of federal or state law relating to wage theft or payroll fraud has occurred, may file a written complaint with the director of the applicable department within 180 days of the alleged violation or knowledge of the alleged violation. The complaint shall be a statement with the name and address of the person making the charge, the name and address of the employer alleged to have committed the violation of federal or state law, and any other information as may be required by the director of the applicable department.
(b) The Law Department shall create and maintain a list of persons or entities that have reported adverse determinations pursuant to Section 112.02, the adverse determination list. The Law Department shall cause the list to be published on the City website and updated every month.
(Ord. 76-2023. Passed 7-17-23.)
(a) An applicable department may request a waiver from the Law Department on behalf of a person or entity with an adverse determination that places the person or entity on the adverse determination list. The Law Department may grant the waiver if the applicable department demonstrates that the inability of the applicable department to contract with that person or entity would result in serious disruption to the efficient and orderly operations of the City or the person or entity is a sole source provider of goods or services that are necessary for the efficient and orderly operations of the City.
(b) A person or entity may request a waiver from the Law Department of an adverse determination that places that person or entity on the adverse determination list. The request shall be in writing and shall include one or more of the following reasons for granting the waiver:
(1) That there has been a bona fide change in ownership of the person or entity since the adverse Determination;
(2) The person or entity has taken significant and verifiable actions to prevent any future adverse determinations and has complied with the requirements of the final adjudication, final action, or final determination placing that person or entity on the adverse determination list, including the payment of required back pay, interest penalties and fines; and
(3) Any other information the person or entity deems relevant to granting the waiver, or that the Law Department wishes to consider.
(c) The Law Department may grant a waiver under division (b) of this section by removing the person or entity from the adverse determination list, reducing the time period a person or entity is on the adverse determination list, or allowing the person or entity a one-time waiver to enter into a contract, subcontract or to apply for assistance.
(Ord. 76-2023. Passed 7-17-23.)
(a) The Law Department shall partner with employers, labor organizations and community groups to inform residents of their workplace rights under federal, state and local law, provide information to residents about available resources, and to communicate the benefits of this chapter to businesses, employees and community groups.
(b) The Law Department shall review the effectiveness of the wage theft and payroll fraud ordinance to ensure that those entities receiving public assistance, government loans, and contracts from the City are adhering to the ordinance. The Law Department shall make recommendations to the Council, when appropriate, regarding issues pertaining to the wage theft and payroll fraud policy.
(Ord. 76-2023. Passed 7-17-23.)
(a) No person shall willfully withhold the information required under Section 112.02.
(b) Any person who violates division (a) of this section is guilty of a misdemeanor of the first degree.
(Ord. 76-2023. Passed 7-17-23.)