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Premium Pay for Grocery Workers and Retail Pharmacy Workers <br />March 2, 2021 <br />Page 3 <br />5 <br />0 <br />2 <br />that are publicly traded or have at least 300 employees nationwide and more than <br />15 employees per grocery or drug store location. <br />City of Oakland, CA: In February 2021, the Oakland City Council approved a <br />Hazard Pay Ordinance requiring certain grocery store employers to pay an <br />additional $5 per hour in hazard pay for all part-time and full-time employees, and <br />comply with other new legal obligations. The ordinance does not require employers <br />who have already implemented hazard pay of any amount to pay the additional $5 <br />per hour. <br />City of Santa Monica, CA: On January 12, 2021, the Santa Monica City Council <br />approved $5 per hour “hero pay” for grocery workers at large employers. <br />City of Seattle, WA: On January 25, the Seattle City Council unanimously passed <br />a similar mandate requiring certain large grocery and food retail businesses with <br />at least 500 employees globally to pay $4 per hour hazard pay for grocery workers. <br />Pending Litigation with Cities and Premium Pay Ordinances <br />The California Grocers Association filed a lawsuit against the City of Long Beach, <br />declaring their hero pay ordinance unconstitutional. The suit claims the ordinance is illegal <br />because, by singling out certain grocers and ignoring other groups that employ essential <br />frontline workers, it violates the equal protection clause of the U.S. Constitution that <br />requires that similarly situated people must be treated alike, and that the ordinance is <br />preempted by the federal National Labor Relations Act relating to the collective- <br />bargaining process. <br />The California Grocers Association filed similar lawsuits relating to premium pay <br />ordinances enacted by the City of Montebello and City of Oakland. <br />February 2, 2021 City Council Meeting <br />At the February 2, 2021 meeting, the City Council directed staff to deliver a written report <br />prior to March 2, 2021 that contains a proposed Urgency Ordinance that includes the <br />following: <br />A requirement that retail stores located within the city limits which are privately and <br />publicly traded, with at least 300 employees nationwide, and with more than 15 <br />employees per store site, pay all their employees an additional four (4) dollars per <br />hour in wages; <br />“Discount language” that applies to employers who are already providing similar <br />benefits; <br />A sunset clause, occurring 120 days from the effective date of the ordinance; and <br />Any other provisions necessary to implement the intent of the motion. <br />Additionally, the City Council directed the City Attorney to advise the City Council on the <br />enforceability of such an ordinance, in light of the lawsuit filed against the City of Long <br />Beach in response to their City Council’s adoption of a similar ordinance.