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Federal Court Strikes Down Fall River REO Residency Requirements, Mandatory Group Health, Pension and Apprenticeship Mandates Found Unlawful


On October 4, 2011, U.S. District Court Judge Rya Zobel found unlawful sections of Fall River’s Responsible Employer Ordinances (“REOs), which mandated General Contractors and Subcontractors on Fall River public works projects to: (1) hire Fall River residents; (2) required them to provide group health insurance, a pension plan, or annuity; and, (3) maintain an apprenticeship program, because these requirements violated either the U.S. Constitution or the Employer Retirement Income Security Act (“ERISA”). The Court further forbade Fall River from including any of those mandates in its public bids or enacting any new ordinance to circumvent its ruling. Utility Contractors Association of NE., et al. v. City of Fall River, __ FSupp3d. __, 10-cv-10992 (USDC MA Oct.4, 2011).

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