Philadelphia Construction Law Blog

There is at least one universal truth in businesses of all kinds: no one likes to work for free. The risk of non-payment in the construction industry can be greater than in others because of the significant financial outlay that is required just to perform the work. Reimbursement for labor and material costs are required just to avoid losing money (not profit) on a job. And we all know what happens to companies that don’t at least break even most of the time.

It has long been the custom in Philadelphia that individual City Council members have the final say on land development and zoning issues within the bounds of the districts they represent. Even projects that are good for the City as a whole and supported by a majority of City Council members can be stopped by a single member of council when this unwritten rule is invoked.

Defying the conventional wisdom on how he would handle the recently passed union intimidation bill that was sent to him, Pennsylvania Governor Tom Wolf signed the legislation into law. In a short press release that can be found here, the Governor indicated that he agreed it was time to close the loophole in the law “that allowed both employees and employers” to engage in harassment without penalty when in a labor dispute.

Reports out of Harrisburg are that Pennsylvania House Bill 874 – identified as the union intimidation bill – has passed through the House on concurrence vote. The vote was 107-91. As previously reported, the legislation now goes to Governor Wolf for signature. He can choose to veto it, sign it into law, or table it. If he tables it, the legislation would become law in 10 days.

The Pennsylvania Senate has passed House Bill 874 by a vote of 30-18. The version agreed upon by the Senate will now go back to the Pennsylvania House for a concurrence vote and then on to Governor Wolf to sign. Because the legislation passed through the Senate in substantially the same form as it left the House, there appears little chance the legislation will be hung up again before it hits Governor Wolf’s desk.

Philadelphia has put a new city ordinance in place that implements its policy of ensuring that all employees – whether working for a public or private entity – within the city limits, get paid sick time. Bill number 141026 became effective in May. With one notable exception for people working under a collective bargaining agreement, it applies to all construction and development companies.

We have continued to follow legislation put forth in the Pennsylvania legislature that seeks to close a loophole in the criminal code that provides exemptions for stalking, harassing, and threatening to use a weapon of mass destruction if it is done during a labor dispute. The newest version, Pennsylvania House Bill 874, has passed out of the House and been approved by the Senate Judiciary Committee by a 9-4 vote. It now seems primed to come to the Senate floor for a full vote.

OSHA CeritifcationsOSHA CeritifcationsAs part of the reaction to the tragic loss of life when a demolition contractor caused a building collapse at 22nd and Market Streets approximately 2 years ago, Philadelphia City Council passed a new city ordinance imposing licensure requirements for demolition contractors. That law, which was signed by Mayor Nutter, also imposed a new training requirement for some contractors to obtain and keep their contractor’s license.

In Pennsylvania, the law currently provides an exception in the criminal code that prohibits the prosecution of the crimes of harassment, stalking, and threatening to use a weapon of mass destruction if those otherwise criminal acts are done as part of a labor dispute. Beginning last year, an effort was undertaken in the state legislature to close that loophole.

It remains early in both Governor Tom Wolf’s term and the 2015 legislative session. Nonetheless, there is already some legislation which would impact the construction industry making the rounds in Harrisburg.