Court rejects public contract rules

So-called “responsible employer ordinances” could come under greater scrutiny across the state after a U.S. District Court judge recently ruled against Fall River’s rules for bidding on public contracts.

The court struck down provisions in city ordinances related to residency, apprenticeships, health care and pensions for workers with companies bidding on public contracts. The court held that the city’s rules violated the Massachusetts and U.S. constitutions.

The court order states that the federal Employee Retirement Income Security Act invalidates provisions requiring contractors to provide pension/annuity plans for all employees on projects and bidders and subcontractors to provide, at their expense, hospitalization and medical benefits for all project employees.

Additionally, the court ruled, the city of Fall River is “permanently enjoined from either enacting or enforcing any local ordinance, law or bylaw applicable to the bidding of public works projects which requires private employers to favor the employment of Fall River residents.”

The Fall River ordinance required all apprentices and half of all other workers on public-bid construction projects to be Fall River residents.