New Orleans Requires Contractors to Report When They Violate Laws

The New Orleans City Council voted on March 15, 2012 to require that contractors self-report to the City when they violate laws.

Reporting violations within 90 days:  The new ordinance applies to contractors with construction contracts more than $50,000 and requires that each such contract include language requiring contractors to notify the City Attorney within 90 days:

"of any determination by a federal or state agency, or of any judgment issued by a court of competent jurisdiction, finding that in the conduct of performing work contracted by the City, the contractor or any of  its subcontractors violated labor or employment laws..."

Content of notification:  Under the new ordinance, contractors must report the following:

• Specific charges filed against the contractor
• Date of occurrence of the allegation
• Identify of each specific City contract under which findings were issued
• Official copy of administrative finding or court judgment
• Contractor's written plan with actions taken and/or planned to correct violations

City to enforce:  If a contractors fails to notify the City or correct the violations, the City Attorney "shall issue written notice to the prime contractor and take such action as may be necessary to enforce the provisions of this Section, including the pursuit of all appropriate civil remedies." It is unclear what specific actions the City may take in the event of violations.

Opposition to ordinance:  The controversial ordinance passed on a 4 to 3 vote, with labor interests strongly supporting the measure, while business interests opposed it.

More information:

•  March 15, 2012 article in The Times-Picayune: New Orleans City Council adopts contractor compliance code
•  Ordinance text

Mike Purdy's Public Contracting Blog 

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