Philadelphia, PA, Expands the “Protection of Displaced Contract Workers

What happened?

On May 1, 2024, the mayor of Philadelphia Cherelle Parker signed Ordinance No. 240088, which establishes a right of recall for laid-off service workers and a right of retention for service workers in the event of a property closure or service contract termination.

What are the details?

• The law amends Chapter 9-2300 of The Philadelphia Code, known as the “Protection of Displaced Contract Workers.”

• It provides protection for service employees, including those who have been laid off.

• The law is designed to ensure job security for service workers when there is a change in contractors at their workplace.

• It applies to service employees at any covered property who provide services such as security, janitorial services, building maintenance, concierge services, door attendant services, food and beverage, hotel service, health care services, parking services, and airport service employees.

• The law prevents unfair displacement of these workers when a new contractor takes over the service contract at a covered property.

• It requires the new contractor to retain existing employees for a specified period (90 days) and prohibits termination without just cause.

• A performance evaluation must be conducted for each retained employee at the end of this period.

• Not all employees are covered by this law.

• Covered employers must provide the necessary notices in the prescribed form, time, and manner.

Business Considerations

• Employers should adjust their policies, practices, and procedures to adjust to the new standards.
• Although not applicable to all employers, covered employers, especially the ones on a merger or a sale of a business, should factor in the new requirements in their negotiations, and plan how to fulfill them.
• Employers should provide the notices in the form, time, and manner. Said notices can be found inside the law.

Source References

• Ordinance No. 240088
• Ordinance No. 240088 Details

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