NEW LEGISLATION RAISES CONCERNS

Three bills have recently been introduced by Councilmember Phil Mendelson that at first glance appear to be counter-productive regulatory over reach.

Bill 19-169, the "Workplace Fraud Amendment Act of 2011," applies only to the  "construction services industry" and directs the Mayor to investigate allegations by "interested parties" that employers are improperly classifying individuals as independent contractors instead of as true employees.  The bill provides penalties (including treble damages) for employers who are found to be in violation.  Since the status of independent contractors is already closely regulated by the IRS as part of the national tax code, the bill raises questions as to its real purpose, which may have more to do with the promotion of  First Source and collective bargaining than with fighting fraud.

Bill 19-170, the "Large Retailer Community Agreement Act of 2011," requires large retailers (75,000 sf) to enter into a Community Benefits Agreement with "a broad-based coalition of individuals and entities that are reflective of the community in which the retail store is located," as a condition of a business license. 

Bill 19-171, the "Large Retail Accountability Act of 2011," requires large retailers and its contractors to observe District First Source and Living Wage Acts - since they otherwise "threaten to erode living standards for working families in the District."  A collective bargaining agreement, however, waives the requirements of the bill.  In both cases, clearly discriminatory requirements are imposed on large retailers which can only retard retail development in the District. 

Roderic L. Woodson, Partner

Holland & Knight LLP

Chair, DCBIA Legislative/Government Affairs Committee