NCPA - National Center for Policy Analysis

San Francisco Implements Nation's Toughest Local Hiring Ordinance

March 22, 2011

San Francisco is preparing to implement what is billed as the nation's toughest local hiring ordinance, reports Yahoo! Finance.

  • The new law establishes strict requirements for how many work hours on city-funded projects must be completed by city residents, starting with 20 percent this year and rising 5 percentage points a year all the way to 50 percent.
  • The law was modeled in part after a similar mandate enacted in Cleveland, Ohio, but it goes a step further by also requiring that a set percentage of work hours be performed by economically disadvantaged workers.
  • The requirements apply to municipal construction projects worth more than $400,000 within 70 miles of the city.

Supporters say the law will create much-needed jobs as San Francisco grapples with a 9.5 percent unemployment rate and prepares to award an estimated $27 billion in public works and improvement contracts over the next decade, including 128 planned projects in the coming year.  But critics say the law's touted benefits come at the expense of jobs in surrounding counties, where many construction workers have flocked seeking lower housing prices.  Those outlying areas are home to more than 60 percent of the estimated 14,700 construction workers employed in San Francisco, according to the state Employment Development Department.

Source: "San Fran Set to Implement Tough Local-Hire Law," Yahoo! Finance, March 19, 2011.


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