The best-kept secret for Philadelphia employees in the hotel, building-management and health care fields is a local law that went into effect in June 2000 known as the Philadelphia Displaced Contract Workers Ordinance (DCWO). (See Chapter 9-2300 of the Philadelphia Code.) The ordinance makes it unlawful for a successor contractor to fail to continue the employment of the previous service contractor’s employees for a period of 90 days. The ordinance only applies to security, janitorial, building maintenance, food and beverage, hotel service or health care services performed within the city of Philadelphia.
Here is how the law works. The owner of a business, referred to as an “awarding authority,” which decides to replace one contractor with another contractor where substantially the same services are being performed, must give advance notice to the service contractor that the contract will be terminated. The terminated or ending contractor must then provide to the successor contractor the name, date of hire and employment occupation classification of each employee employed by the predecessor contractor at the time of receiving the notice, within three days. The law also applies when a business acquires another company and elects to switch contractors.
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