Key Notes:

  • The trial for a permanent injunction is set for November 7, 2016.

On August 30, 2016, Judge Michael Russo of the Cuyahoga County Common Pleas Court granted the city of Cleveland a preliminary injunction in its lawsuit against the state of Ohio related to Ohio’s new local hiring statute, House Bill 180. The new state law, which prohibits the use of local hiring requirements on public projects in Ohio, was set to become effective August 31. The city argued that the statute undermines the city’s home rule authority by barring enforcement of Cleveland’s Fannie M. Lewis Cleveland Resident Employment Law, which requires that at least 20 percent of construction hours on city-funded projects costing $100,000 or more be performed by Cleveland residents, and that 4 percent of that work be done by residents considered low-income.

The court’s preliminary injunction order prohibits the state from enforcing the new law and will remain in place until the court conducts a full trial on Cleveland’s request for a permanent injunction, which is currently scheduled for November 7. However, since the court designated in its order that there is “no just reason for delay should an interlocutory appeal be pursued,” any appeal filed by the state of Ohio may result in a postponement of the trial and the continuance of the preliminary injunction until the Court of Appeals reaches a decision.

For additional details, please read our previous Construction Updates “Ohio Legislature Passes Ban on Local Hiring Requirements” and “New Law Bans Local Hiring Requirements on Ohio Public Projects.”