Court rules against St. Pete in construction hiring ordinance case

One of the largest construction trade associations in the region is celebrating what it calls a big win against the city of St. Petersburg over a hiring ordinance it claimed imposed "stringent wage requirements" and had "severe financial penalties for non-compliance."

The regulation in question is called the Apprenticeship and Disadvantaged Worker Ordinance. The rule called for 15% of a project’s work hours to be allocated to apprentices and an additional 15% to be allocated to disadvantaged workers. The city defines disadvantaged workers as those “with a criminal record, veterans, the homeless, residents of the South St. Petersburg Community Redevelopment Area, those without a GED or high school diploma and someone who received public assistance in the year preceding employment.”

The Florida Gulf Coast Chapter of Associated Builders and Contractors, with 23,000 members, filed a lawsuit in 2019 against St. Pete. “The city is asking companies to bid on projects, but they’re only able to utilize 70% of their own workforce,” ABC President and CEO Steve Cona III told the Business Observer in 2019. “They’re having to hire another 30% of the workforce that technically is unskilled. It becomes very problematic for our members who are trying to deliver a quality project, … and it’s not fair to the companies bidding on the project.”

The legal challenge was filed in the Circuit Court of the Sixth Judicial District by Cotney Construction Law. 

A district court judge ruled in favor of ABC. The city decided not to appeal the judgment, with a spokesperson, in an email to the Business Observer, saying that "determination was not made lightly."

"We are taking steps based upon the following: direction advised by our attorneys, the anticipated attorney fees that will be incurred, and the high probability of a negative ruling," the note states. "We will continue to work with our legal team to take another look at this scenario within the framework currently allowable after the State preemption in HB 705. And, we will continue to focus our energy on efforts that we can affect and will support corrective legislation.” 

The statement notes that the city will continue to pursue equity and inclusivity goals through other avenues.

Cona, meanwhile, in a statement, says the rule is a win for Florida Gulf Coast Chapter members — it represents over 620 construction firms in the region — and taxpayers. 

"We are thrilled with this victory," Cona wrote in a statement. "The court recognized that these rules were unfair and detrimental to the construction industry. This decision ensures that construction projects in St. Petersburg are fair and competitive, sending a clear message that similar rules won’t hold up statewide. This is also a significant win for taxpayers, as increased competition will lead to better pricing and more opportunities for small businesses."