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Item 30 - Premium Pay Grocery Workers and Retail Pharmacy Workers
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Item 30 - Premium Pay Grocery Workers and Retail Pharmacy Workers
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Clerk of the Council
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30
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3/2/2021
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Premium Pay for Grocery Workers and Retail Pharmacy Workers <br />March 2, 2021 <br />Page 2 <br />5 <br />0 <br />2 <br />Grocery Stores as Essential Businesses <br />Grocery stores are essential businesses. As such, grocery workers employed at grocery <br />stores are essential workers who perform services that are fundamental to the economy <br />and health of the community during the COVID-19 crisis. They work in high-risk conditions <br />with inconsistent access to protective equipment and other safety measures, work in <br />public situations with limited ability to engage in physical distancing, and continually <br />expose themselves and the public to the spread of disease. <br />COVID-19 Cases and Deaths to Date <br />As of February 25, 2021, the World Health Organization reported a global total of <br />112,209,815 cases of COVID-19, including 2,490,776 deaths; California reported <br />3,455,361 cases of COVID-19, including 49,877 deaths; and Santa Ana reported 43,835 <br />cases of COVID-19, including 688 deaths. <br />Premium Pay <br />Premium pay, such as a “hazard pay” or “hero pay” is wages paid to an employee in <br />addition to regular wages. Premium pay is an established type of compensation for <br />employees performing hazardous duty or work involving physical hardship that can cause <br />extreme physical discomfort and distress. <br />Premium Pay in Other Cities <br />Several cities throughout California and elsewhere in the United States have proposed or <br />adopted local ordinances to establish premium pay for grocery workers: <br />County of Los Angeles, CA: On January 5, 2021, the Los Angeles County Board <br />of Supervisors voted to draft a mandate requiring large grocery and drugstore <br />chains to provide workers a $5 per hour pay increase for at least 120 days. <br />City and County of San Francisco, CA: In January 2021, the San Francisco Board <br />of Supervisors passed a nonbinding ordinance urging companies to pay hazard <br />pay. <br />City of Irvine, CA: On February 9, 2020, the Irvine City Council approved an <br />ordinance requiring grocery store employees in the city to be paid an extra $4 an <br />hour for 120 days. <br />City of Long Beach: On January 19, 2021, the Long Beach City Council approved <br />a “Premium Pay for Grocery Workers Ordinance” which requires employers to pay <br />a $4 per hour premium wage for employees. <br />City of Los Angeles, CA: On February 2, 2021, the Los Angeles City Council <br />directed staff to prepare an emergency ordinance that will provide all on-site <br />grocery workers at grocery stores and certain drug retail stores with 300 or more <br />employees with an additional five dollars per hour in wages, to be effective for 120 <br />days. The City of Los Angeles approved its hero pay ordinance on February 24, <br />2021. <br />City of Montebello, CA: The Montebello City Council approved an ordinance <br />requiring large drug and grocery stores to give its employees a $4 per hour pay <br />raise for 180 days. The ordinance applies to stores operating within Montebello
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