Cleveland’s Community Benefits Ordinance and Local Hire
Cleveland’s Push for Local Hire and Community Benefits
Cleveland has taken concrete steps to ensure public construction projects benefit local workers. The Community Benefits Ordinance, passed in June 2023, is a key part of that effort. It focuses on hiring local residents, supporting minority contractors, and investing in the community.
If you are a contractor working on federally or city-funded projects, this matters. These rules affect how you hire, report payroll, and meet compliance requirements.
Davis Bacon Solutions was built to simplify rules like these and help you stay compliant without confusion
Who Helped Shape Cleveland’s Community Benefits Approach
Cleveland’s local hire and community benefits policies did not appear overnight. They were shaped by leaders, advocates, and organizations focused on equity in construction.
Key contributors include:
Councilwoman Fannie Lewis
A long-time advocate for fair hiring and community investment in Cleveland. She helped push policies that ensured residents benefited from development projects.Congressman Louis Stokes
A national leader who supported equal access to jobs and economic opportunity, especially for underserved communities.Mayor Frank Jackson
His administration supported workforce initiatives and agreements tied to public development projects.Hilton O. Smith and Turner Construction
Known for supporting minority contractors and pushing for inclusion in large-scale construction projects.
These efforts led to stronger workforce agreements, including Memorandums of Understanding tied to community benefits, such as the one adopted in March.
What Is the Community Benefits Ordinance
The Community Benefits Ordinance requires certain construction projects to give back to the community in measurable ways.
This includes:
Hiring local workers
Partnering with minority-owned businesses
Supporting workforce training programs
Meeting reporting and compliance standards
The goal is simple. Public money should create local opportunity.
How Local Hire Requirements Work
Local hire rules require contractors to hire a percentage of workers from the surrounding area. In Cleveland, this often focuses on residents within city limits or specific zip codes.
Typical requirements include:
A set percentage of total work hours must be performed by local residents
Priority hiring for low-income individuals
Tracking and reporting workforce data
This closely ties to the Section 3 requirements, which apply to federally funded projects.
If your project involves HUD funding, you can learn more here:
https://www.hud.gov/
How This Connects to Davis-Bacon Compliance
Many Cleveland projects involve federal funding. That means you must follow the Davis-Bacon Act, which requires:
Paying prevailing wages
Submitting certified payroll reports
Classifying workers correctly
If you miss any of these steps, you risk:
Payment delays
Contract penalties
Audits or investigations
Davis Bacon Solutions helps contractors understand these requirements in plain terms and avoid common mistakes:
Real-World Example
Let’s break this down with a simple example.
A contractor wins a $10 million public works project in Cleveland that includes federal funding.
They must:
Pay prevailing wages under Davis-Bacon
Hire a percentage of workers locally
Meet Section 3 goals
Submit certified payroll weekly
Track workforce demographics
If they fail to meet local hire goals, they may need to:
Provide proof of outreach efforts
Partner with workforce organizations
Adjust hiring practices
Without a system in place, this becomes overwhelming fast.
Workforce Partners Supporting Local Hire
Cleveland has strong organizations that support workforce development and compliance.
Key organizations include:
Ohio Women in Trades
Provides training and career pathways for women entering construction and skilled trades
https://www.ohiowomenintrades.com/Urban League of Greater Cleveland
Provides job training, workforce support, and community services
https://www.ulcleveland.org/Cleveland Building and Construction Trades Council
Represents unions and helps coordinate skilled labor
https://cbctc.org/
These groups help contractors meet hiring goals while building a strong workforce pipeline.
Why Contractors Struggle With Compliance
Most contractors are not trying to break the rules. The issue is complexity.
You are dealing with:
Federal laws like Davis-Bacon
Local hire mandates
Section 3 requirements
Certified payroll reporting
Audits and documentation
Each one has different rules, deadlines, and reporting formats.
Even experienced contractors can make mistakes.
Common Mistakes to Avoid
1. Misclassifying workers
If you assign the wrong wage classification, you risk underpayment violations.
2. Missing local hire targets
Not tracking workforce data early can cause you to fall short.
3. Incomplete certified payroll
Errors or missing information can trigger audits.
4. Lack of documentation
You need proof of outreach, hiring efforts, and compliance steps.
5. Not using workforce partners
Trying to hire locally without support can slow down your project.
How LocalHire.us Helps You Meet Requirements
One of the biggest challenges is finding qualified local workers.
That is where LocalHire.us comes in.
This platform helps:
Employers connect with local job seekers
Contractors meet Section 3 and local hire goals
Workers find construction opportunities in their area
Using a job board built for compliance saves time and reduces risk.
The Role of Third-Party Labor Compliance
Managing all of this in-house is tough. That is why many contractors use third-party labor compliance support.
Labor Compliance CA, LLC provides:
Certified payroll review
Worker classification guidance
Audit support
Compliance monitoring
Reporting assistance
This reduces your risk and keeps your project on track.
Request a Labor Compliance Consultation
Why Cleveland’s Model Matters Nationwide
Cleveland is not alone. Cities across the country are adopting similar policies.
You will see more:
Community benefits agreements
Local hire mandates
Workforce reporting requirements
Diversity and inclusion goals
If you understand how Cleveland operates, you are better prepared for projects in other states.
Practical Steps You Can Take Right Now
Set up a compliance system early
Do not wait until the project starts.
Partner with local organizations
They help you meet hiring goals faster.
Track workforce data weekly
Do not leave reporting until the end.
Use a compliance expert
This saves time and prevents costly mistakes.
Post jobs on the right platforms
Use tools like LocalHire.us to reach qualified local workers.
How This All Works Together
Think of your project as a system with three main parts:
Wages and payroll compliance
Covered by Davis-Bacon rulesHiring and workforce goals
Driven by local hire and Section 3Reporting and documentation
Required by city and federal agencies
If one part fails, the whole system slows down.
Where Davis Bacon Solutions Fits In
Davis Bacon Solutions exists to make this easier.
You get:
Simple explanations of complex rules
Step-by-step guidance
Real examples from actual projects
Resources that help you stay compliant