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Columbus Proposes Prevailing Wage Rule for Private Projects Receiving City Investment

Columbus Proposes Prevailing Wage Rule for Private Projects Receiving City Investment

Columbus City Council President Pro Tempore Rob Dorans is leading an initiative to extend fair wage protections to private construction projects that receive substantial public investment. Under existing laws, construction workers on city-funded public projects must be paid at least the prevailing wage, which includes established rates for both pay and benefits. Dorans has now introduced a new ordinance that would apply this wage standard to private projects that receive at least $500,000 in financial support from the city, including tax abatements and development incentives.

According to Dorans, ensuring construction workers are paid fairly when public money supports a private project is essential not only for economic equity but for the overall health of the city’s economy. He emphasized that good wages in the construction sector contribute directly to Columbus's income tax revenue and help sustain construction as a stable, long-term career path. This in turn supports a skilled local labor force. Dorans, who also serves as chief counsel for ACT Ohio, an organization representing construction worker unions, has long advocated for workers' rights and job quality within the building trades.

The proposal, introduced during a Finance and Governance Committee hearing on June 11, was presented alongside a second, related piece of legislation. The companion proposal would require developers receiving at least $500,000 in city funds to meet with the Office of Diversity and Inclusion. While this legislation does not mandate hiring targets for minority or local workers, it seeks to initiate conversations about workforce development and local hiring strategies. The concept stemmed from a roundtable event held by the city during Black History Month, which focused on how to improve access to jobs and training for underrepresented communities.

Dorans expressed concern over the political climate, specifically citing recent moves by former president Donald Trump's administration that he views as hostile toward diversity and inclusion programs. He stressed the importance of drafting legislation that meets legal scrutiny while still fostering equity and opportunity. The goal of the companion measure is to get developers engaged with city diversity programs early in the process, even if formal hiring mandates are not yet in place.

The prevailing wage provision would be enforced by the city’s Labor Commission, which would have the authority to investigate complaints. Penalties for noncompliance could include being barred from participating in future city-funded projects for up to three years. This enforcement mechanism is critical, Dorans argued, because in past negotiations the city has struggled to secure prevailing wage agreements for large private developments despite significant public investment. One notable example is the $54.6 million public contribution to the North Market expansion and the adjacent Merchant Building tower, a deal Dorans voted against in part due to wage concerns. He indicated that he has heard reports suggesting some contractors involved in that project may not be paying prevailing wages, though confirming such claims has been difficult.

Projects such as these, even when receiving millions in city incentives, have not always been subject to mandatory wage standards. Dorans sees codifying the requirement in city law as a way to establish consistency and transparency, avoiding case-by-case negotiations that may leave workers vulnerable to lower pay and fewer benefits.

One significant exception to the proposed law is housing. The legislation would exempt nearly all housing-related construction projects receiving city support. Councilmember Otto Beatty III expressed support for this exemption, stating that the city is working to increase the availability of affordable housing and adding wage requirements could jeopardize those efforts. Beatty also questioned why prevailing wage requirements couldn’t simply be negotiated individually for each project. Dorans responded by pointing to the city’s past difficulties in securing such terms during negotiations and reaffirmed the need for the policy to be enshrined in code.

The ordinance, if passed, would align Columbus with cities like Cincinnati, which adopted a similar policy in 2016. Dorans aims to bring the two proposals before the full City Council for a vote by the end of 2025, with at least one more committee hearing planned before that.

Dorsey Hager, executive secretary-treasurer of the Columbus/Central Ohio Building and Construction Trades Council, was the only speaker to testify at the hearing, offering strong support for the prevailing wage proposal. He argued that it would not only raise standards for workers but also reduce income inequality across the region. Hager highlighted that secure wages and benefits ensure that workers can support their families and retire without becoming financially dependent on public systems, ultimately benefiting the community at large.

To illustrate the impact of these policies, Dorans shared recent examples of private projects in 2025 that would have been subject to the proposed rules. One is a $500,000 city investment in Safelite Group, Inc., to support the construction of a sky bridge connecting office buildings at its headquarters. Another is Jetway Flex, LLC, which received a 75% 10-year tax abatement worth about $2 million to build two warehouses on the East Side, with a promise to create 12 jobs. A third example is XPO LTL Properties LLC and XPO Logistics Freight, Inc., which were granted a similar 75% tax abatement worth approximately $1.2 million to expand a freight facility and add 35 jobs. These cases, Dorans said, underscore the importance of ensuring public investment leads to tangible community benefits, including fair wages and opportunities for local workers.

As the proposals continue through the legislative process, they spark a broader conversation about the role of public funding in private development and the responsibility of developers to uphold standards that reflect the city’s values. With labor rights, workforce equity, and economic sustainability at stake, the outcomes of these ordinances could set a precedent for how Columbus leverages its development dollars for the greater good.

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