City of Long Beach Boosts Grocery Workers’ Pay

Seyfarth Synopsis: On January 19, 2021, the City of Long Beach adopted an ordinance requiring large grocery stores to pay an additional $4 per hour to certain grocery workers, as “hero pay” in light of the COVID-19 pandemic. The emergency ordinance, which is effective immediately, also requires grocery stores to provide written notice of the ordinance.

As we previously reported, a number of California cities and counties (such as the City and County of Los Angeles) are considering implementing ordinances increasing grocery worker pay.

The City of Long Beach ordinance, adopted January 19, 2021, requires certain grocery stores to pay their workers an additional $4 dollars per hour of “hero pay” for 120 days (unless the ordinance is extended).

Grocery Stores Covered Under the Ordinance

The ordinance applies to grocery stores that devote 70% or more of its business to retailing a general range of food products, which may be fresh or packaged, as well as to grocery stores that employ over three 300 grocery workers nationally and employ more than 15 employees per store in the City of Long Beach. The ordinance excludes managers, supervisors and confidential employees. 

Retaliation and Reducing Compensation Prohibited

In addition to hero pay, grocery stores cannot reduce a worker’s compensation, limit employees’ earning capacity, or retaliate against an employee for exercising rights under the ordinance.

Written Notice Requirement

The ordinance requires grocery stores to provide written notice of rights available under the ordinance, including the right to additional pay, the right to be protected from retaliation, and the right to file a lawsuit.  Notice must be posted in employee breakrooms and in an “electronic format that is readily accessible.”  The notice shall be made “available “via smartphone application or an online web portal in English and any language the hiring entity knows or has reason to know is the primary language of the grocery worker.” 

Ordinance Does Not Supersede CBAs

The ordinance does not diminish any other contractual obligations that the grocery store may have.

Records Retention

Grocery stores must retain records that document compliance with the ordinance for two years.

Ordinance Is Challenged

Immediately after the Ordinance went into effect, the California Grocers Association filed an emergency request in the Central District of California seeking declaratory and injunctive relief.  The lawsuit challenges the ordinance as unconstitutional and argues that essential workers in other sectors, such as public safety and transportation, are not covered. The Court denied an ex parte request for an injunction, but a regularly noticed hearing on a motion for a preliminary injunction will be heard on February 19, 2021.

Workplace Solutions

Navigating local COVID-19 related laws and ordinances remain a significant challenge, particularly in California. If you have questions or concerns regarding which types of regulations may apply to your workforce, and how to implement them, reach out to your favorite Seyfarth attorney.