Rep. Sweeney's bipartisan legislation to ensure prompt pay for Ohio workers passes Ohio House

House Bill 68 protects Ohio jobs, keeps construction projects moving forward across the state

May 19, 2021

COLUMBUS — State Rep. Bride Rose Sweeney (D-Cleveland) today announced the passage of House Bill (HB) 68, her bipartisan legislation with State Rep. Jon Cross (R-Kenton) to ensure that prime contractors are paid promptly and construction projects can move forward across the State of Ohio.

“Some Ohio contractors have to wait 60, 90, or even 150 days to receive payment after they finish a construction project. Hardworking Ohioans shouldn’t have to dip into their personal savings or retirement funds just to do their job,” said Rep. Sweeney. “This bipartisan legislation aims to get cash flowing from the top down so that whether a contractor is working for the public on I-480 or privately on one of the massive new data centers being built here in Ohio, they can count on prompt payment for work completed.”

The proposal would require private sector owners of construction projects to provide payment to prime contractors no more than 30 days after prime contractors provide invoices to the owners. It incentivizes bills to be paid in a timely manner and fosters a healthy and good-paying construction industry in Ohio.

“This issue unfortunately falls on those small businesses who can least afford it,” said Rep. Cross. “House Bill 68 aims to get money flowing from, often-times, very large companies to Ohio contractors and focuses on large-scale commercial developers that are not paying their contractors within a reasonable time.”

Ohio law already requires the following timetable for payments, and HB 68 would close the highlighted loophole:

Public Construction Projects

Owner to Prime – 30 days after invoice unless otherwise agreed (R.C. 126.30 and 153.14)

Prime to Sub – 10 days after prime contractor receives payment from owners (R.C. 4113.61)

Sub to Lower Tiers – 10 days after subcontractor receives payment from prime contractor (R.C. 4113.61)

Private Construction Projects

Owner to Prime – No Provision

Prime to Sub – 10 days after prime contractor receives payment from owner (R.C. 4113.61)

Sub to Lower Tiers – 10 days after subcontractor receives payment from prime contractor (R.C. 4113.61)

HB 68 now awaits further consideration before the Ohio Senate.