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<br /> <br /> <br /> 2 Park Plaza, Suite 100 | Irvine, CA 92614| P 949.476.2242 | F 949.476.0443 | www.ocbc.org <br /> <br /> <br />February 1, 2021 <br /> <br />The Honorable Vicente Sarmiento <br />Mayor <br />City of Santa Ana <br />20 Civic Center Plaza <br />Santa Ana, CA 92701 <br /> <br />RE: Santa Ana Hazard Pay Proposal OPPOSE <br /> <br />Dear Mayor Sarmiento and Members of the City Council: <br /> <br />Orange County Business Council (OCBC), the leading voice of business in Orange County, is a <br />strong advocate for balancing support for workers with relief for businesses also reeling from the <br />pandemic. A hazard pay ordinance could inflict financial harm on employers at the worst possible <br />time, while also unintentionally damaging workers and consumers. Therefore, OCBC opposes a <br />locate mandate requiring hazard pay for any workers and asks the City Council to conduct a <br />complete economic impact assessment to fully examine the consequences of a hazard pay <br />ordinance before progressing forward. <br /> <br />Local grocery stores, pharmacies, retailers and other essential employers are committed to paying <br />competitive wages and benefits to their employees. Since the start of the COVID-19 pandemic, they <br />have invested significantly in infrastructure and enhanced safety protocols to protect frontline <br />essential workers and shoppers. They have also provided incentive pay, bonuses and additional <br />health benefits. According to an economic study released by the California Grocers Association, up <br />to an additional $5/hour increase in pay could raise grocery prices by about $400 annually for the <br />typical family of four at the worst possible time. <br /> <br />A hazard pay ordinance could also harm workers, rather than help them. The economic study <br />concluded that, if grocers must offset savings in operational costs, they would need to reduce work <br />hours by 24 percent across the board. Higher costs could even force employers to shutter store <br />locations. Shutting down grocery stores will result in increased food insecurity and food deserts, <br />especially in low-income and disadvantaged neighborhoods. <br /> <br />A hazard pay ordinance for any industry consider research and cannot be duplicative or rushed. For <br />these reasons, OCBC opposes a hazard pay ordinance and strongly urges the Council to <br />perform a complete analysis of the costs of such an ordinance. <br /> <br />Sincerely, <br /> <br />Jennifer Ward <br />Senior Vice President of Advocacy and Government Affairs <br />THE LEADING VOICE OF BUSINESS IN ORANGE COUNTY <br />