Last week, Mayor Barry delayed implementation of Nashville new local hiring law citing concerns from labor and industry groups. Following on the heels of the Mayor’s announcement, Herbert Slatery, Tennessee Attorney General, issued a formal opinion and found the local-hire amendment violated Tennessee’s contractors licensing laws. The AG determined the Tennessee Contractors Licensing Act of 1994 prohibited counties and municipalities from imposing requirements on contractors in addition to those imposed in the Act and from discriminating against contractors licensed by the state “on the basis of the licensee’s nonresidency within the county or the municipality.”
As noted by Tennessee Construction Lawyers in prior posts, Senator Jack Johnson (R-Franklin) filed a bill shortly after the passage of Charter Amendment 3 seeking to invalidate the measure. Based on the new AG opinion, it appears legislative action will not be necessary. However, we will continue to monitor any further action on the matter.