Update: Legislature Overturns Nashville's Local Hire Rule

Date: March 15, 2016 Last Edit: March 17, 2016

Local law would have set a dangerous precedent.

Update: Legislature Overturns Nashville’s Local Hire Rule

In August 2015, Nashville implemented an amendment that required construction companies to hire at least 40 percent of its workers from Davidson County if the project was funded by the city. However, both chambers of the Tennessee Legislature passed bills that would overturn this rule, blocking a dangerous precedent from being established.

NFIB supported overturning the rule because while well-intended, local hire initiatives like Nashville’s are unlawful, unworkable and do more harm than good for the state’s business climate. Attorney General Herbert Slatery had also previously spoken out about how the rule violates Tennessee’s Contractors Licensing Act of 1994, which prohibits counties and municipalities from imposing additional requirement on top of those imposed in the act and from discriminating against contractors licensed by the state on the basis of nonresidency within the county or municipality.

The bill now heads to Gov. Bill Haslam to sign into law.

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