Written By Ira Mitzner
Dickstein Shapiro, LLP
P: 202.420.2234 E: This e-mail address is being protected from spambots. You need JavaScript enabled to view it

One of the heavily litigated issues in the construction industry is the “traveling contractor’s clause.”  If an Ohio contractor has signed a collective bargaining agreement containing such a clause, and does work in a foreign jurisdiction (New York), that employer, when working in New York, must pay New York rates into New York funds.  It is very important for the auditor to understand the correct manner of reporting such employment.  There also are clauses that provide that if an employee is “sent” to another jurisdiction, that employee cannot be paid less than the rates of the home local fund.  These rules were examined and affirmed in Flynn v. Dick Corp., decided by the D.C. Circuit.

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