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HomeMy WebLinkAboutItem 30 - Premium Pay Grocery Workers and Retail Pharmacy Workers City Managers Office https://www.santa-ana.org/cm Item # 30 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report March 2, 2021 TOPIC: Premium Pay for Grocery Workers and Retail Pharmacy Workers AGENDA TITLE: Ordinance Establishing Premium Pay for Grocery Workers and Retail Pharmacy Workers RECOMMENDED ACTION Consider one of the following options: 1. Adopt an urgency ordinance establishing premium pay for grocery workers and retail pharmacy workers. 2. Approve first reading of an ordinance establishing premium pay for grocery workers and retail pharmacy workers. DISCUSSION COVID-19 Pandemic Timeline On March 11, 2020, the World Health Organization (WHO) declared the Coronavirus (COVID-19) a pandemic. On March 17 2020, the City Council proclaimed a civil emergency in response to the COVID-19 pandemic, authorizing the City Manager to exercise the emergency powers necessary to take extraordinary measures to prevent death or injury of persons and to protect the public peace, safety and welfare, and alleviate damage, loss, hardship, or suffering. On March 19, 2020, California Governor Gavin Newsom issued a Stay Home order, closing all non-essential workplaces, requiring people to stay home except to participate in essential activities or to provide essential business services, and banning all gatherings for social, spiritual, and recreational purposes. In addition to healthcare, public health, and emergency services, the Stay Home order identified grocery stores, among other businesses/services, as essential business sectors critical to protecting the health and well-being of all Californians and designated their workers as essential critical infrastructure workers. Premium Pay for Grocery Workers and Retail Pharmacy Workers March 2, 2021 Page 2 5 0 2 Grocery Stores as Essential Businesses Grocery stores are essential businesses. As such, grocery workers employed at grocery stores are essential workers who perform services that are fundamental to the economy and health of the community during the COVID-19 crisis. They work in high-risk conditions with inconsistent access to protective equipment and other safety measures, work in public situations with limited ability to engage in physical distancing, and continually expose themselves and the public to the spread of disease. COVID-19 Cases and Deaths to Date As of February 25, 2021, the World Health Organization reported a global total of 112,209,815 cases of COVID-19, including 2,490,776 deaths; California reported 3,455,361 cases of COVID-19, including 49,877 deaths; and Santa Ana reported 43,835 cases of COVID-19, including 688 deaths. Premium Pay Premium pay, such as a “hazard pay” or “hero pay” is wages paid to an employee in addition to regular wages. Premium pay is an established type of compensation for employees performing hazardous duty or work involving physical hardship that can cause extreme physical discomfort and distress. Premium Pay in Other Cities Several cities throughout California and elsewhere in the United States have proposed or adopted local ordinances to establish premium pay for grocery workers: County of Los Angeles, CA: On January 5, 2021, the Los Angeles County Board of Supervisors voted to draft a mandate requiring large grocery and drugstore chains to provide workers a $5 per hour pay increase for at least 120 days. City and County of San Francisco, CA: In January 2021, the San Francisco Board of Supervisors passed a nonbinding ordinance urging companies to pay hazard pay. City of Irvine, CA: On February 9, 2020, the Irvine City Council approved an ordinance requiring grocery store employees in the city to be paid an extra $4 an hour for 120 days. City of Long Beach: On January 19, 2021, the Long Beach City Council approved a “Premium Pay for Grocery Workers Ordinance” which requires employers to pay a $4 per hour premium wage for employees. City of Los Angeles, CA: On February 2, 2021, the Los Angeles City Council directed staff to prepare an emergency ordinance that will provide all on-site grocery workers at grocery stores and certain drug retail stores with 300 or more employees with an additional five dollars per hour in wages, to be effective for 120 days. The City of Los Angeles approved its hero pay ordinance on February 24, 2021. City of Montebello, CA: The Montebello City Council approved an ordinance requiring large drug and grocery stores to give its employees a $4 per hour pay raise for 180 days. The ordinance applies to stores operating within Montebello Premium Pay for Grocery Workers and Retail Pharmacy Workers March 2, 2021 Page 3 5 0 2 that are publicly traded or have at least 300 employees nationwide and more than 15 employees per grocery or drug store location. City of Oakland, CA: In February 2021, the Oakland City Council approved a Hazard Pay Ordinance requiring certain grocery store employers to pay an additional $5 per hour in hazard pay for all part-time and full-time employees, and comply with other new legal obligations. The ordinance does not require employers who have already implemented hazard pay of any amount to pay the additional $5 per hour. City of Santa Monica, CA: On January 12, 2021, the Santa Monica City Council approved $5 per hour “hero pay” for grocery workers at large employers. City of Seattle, WA: On January 25, the Seattle City Council unanimously passed a similar mandate requiring certain large grocery and food retail businesses with at least 500 employees globally to pay $4 per hour hazard pay for grocery workers. Pending Litigation with Cities and Premium Pay Ordinances The California Grocers Association filed a lawsuit against the City of Long Beach, declaring their hero pay ordinance unconstitutional. The suit claims the ordinance is illegal because, by singling out certain grocers and ignoring other groups that employ essential frontline workers, it violates the equal protection clause of the U.S. Constitution that requires that similarly situated people must be treated alike, and that the ordinance is preempted by the federal National Labor Relations Act relating to the collective- bargaining process. The California Grocers Association filed similar lawsuits relating to premium pay ordinances enacted by the City of Montebello and City of Oakland. February 2, 2021 City Council Meeting At the February 2, 2021 meeting, the City Council directed staff to deliver a written report prior to March 2, 2021 that contains a proposed Urgency Ordinance that includes the following: A requirement that retail stores located within the city limits which are privately and publicly traded, with at least 300 employees nationwide, and with more than 15 employees per store site, pay all their employees an additional four (4) dollars per hour in wages; “Discount language” that applies to employers who are already providing similar benefits; A sunset clause, occurring 120 days from the effective date of the ordinance; and Any other provisions necessary to implement the intent of the motion. Additionally, the City Council directed the City Attorney to advise the City Council on the enforceability of such an ordinance, in light of the lawsuit filed against the City of Long Beach in response to their City Council’s adoption of a similar ordinance. Premium Pay for Grocery Workers and Retail Pharmacy Workers March 2, 2021 Page 4 5 0 2 Proposed Urgency Ordinance The following are key components of the proposed ordinance: Grocery Store and Retail Pharmacy Applicability: o The ordinance applies to certain grocery stores and retail pharmacies (“hiring entities”) which employ over 300 workers nationally and more than 15 employees per grocery store location or retail pharmacy location in Santa Ana. A “grocery store” means a store that devotes 70 percent or more of its business to retailing a general range of food products, and/or a store that has at least 15,000 square feet of floor space dedicated to retailing a general range of food products. “Retail pharmacy” means a corporate or chain (three or more locations nationally) pharmacy or publicly-traded company that is licensed as a pharmacy by the State of California and that dispenses medications to the general public at retail prices. Premium Pay Wages for Designated Workers: o The ordinance requires hiring entities to provide each designated worker with premium pay consisting of an additional $4 cash per hour for each hour worked. For the purposes of the ordinance, “designated worker” means a grocery worker or retail pharmacy worker employed by a hiring entity who is entitled to premium pay pursuant to the ordinance.  Recognition of Premium Pay Already Being Provided: o If a grocery store or retail pharmacy already provides hourly premium pay in accordance with the ordinance, such compensation may be credited toward the additional $4 per hour of premium pay (and achieving compliance if such pay is in the full amount of $4). Duration of Premium Pay: o The ordinance requires premium pay for designated workers for (120) days, beginning on the effective date of the ordinance. Notice of Rights: o Grocery stores and retail pharmacies must advise their employees of their rights under the ordinance, including their right to premium pay guaranteed by the ordinance. Private Right of Action: o A designated worker that suffers financial injury as a result of a violation of the ordinance or is the subject of retaliation may bring a civil action in a court of competent jurisdiction against the hiring entity or other person violating the ordinance. Premium Pay for Grocery Workers and Retail Pharmacy Workers March 2, 2021 Page 5 5 0 2 The ordinance is attached for consideration as either an urgency ordinance (Exhibit 1) or regular ordinance (Exhibit 2). The only difference between the two ordinances is that the urgency ordinance contains express findings that the ordinance is necessary as an emergency measure to protect and preserve the health, safety and welfare of the citizens of the City of Santa Ana, and therefore, would become effective immediately if passed by the affirmative votes of at least two-thirds of the members of the City Council. The regular ordinance does not declare such express findings, and therefore, would be considered for a first reading and second reading; if the majority of the members affirm the passage of the first and second readings, the regular ordinance would become effective 30 days after the second reading. OPTIONS The City Council has the following options to consider relating to this matter: 1. Adopt an urgency ordinance establishing premium pay for grocery workers and retail pharmacy workers. 2. Approve first reading of an ordinance establishing premium pay for grocery workers and retail pharmacy workers. ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact associated with this action. EXHIBIT(S) 1. Urgency Ordinance 2. Regular Ordinance Submitted By: Kristine Ridge, City Manager Approved By: Kristine Ridge, City Manager Ordinance No. NS-XXX Page 1 of 10 ORDINANCE NO. NS-XXX AN UNCODIFIED ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING PREMIUM PAY AND ASSOCIATED LABOR PROTECTIONS FOR GROCERY AND RETAIL PHARMACY WORKERS WORKING IN SANTA ANA City Attorney Summary The Ordinance aims to protect and promote the public health, safety, and welfare during the COVID-19 emergency by requiring grocery and retail pharmacy stores to provide premium pay for grocery and retail pharmacy workers performing work in Santa Ana. WHEREAS, the new coronavirus 19 (“COVID-19”) disease is caused by a virus that spreads easily from person to person and may result in serious illness or death, and is classified by the World Health Organization (“WHO”) as a worldwide pandemic; and WHEREAS, COVID-19 has broadly spread throughout California and remains a significant health risk to the community, especially members of our most vulnerable populations; and WHEREAS, on March 4, 2020, California Governor Gavin Newsom proclaimed a state of emergency in response to new cases of COVID-19, directing state agencies to use all resources necessary to prepare for and respond to the outbreak; and WHEREAS, on March 17, 2020, the City Council approved Resolution No. 2020 - 016 proclaiming the existence of a local emergency regarding COVID-19 and authorizing the City Manager to exercise the emergency powers necessary to take extraordinary measures to prevent death or injury of persons and to protect the public peace, safety and welfare; and WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued a “Stay Home – Stay Healthy” proclamation closing all non-essential workplaces, requiring people to stay home except to participate in essential activities or to provide essential business services, and banning all gatherings for social, spiritual, and recreational purposes. In addition to healthcare, public health and emergency services, the “Stay Home – Stay Healthy” proclamation identified grocery and retail pharmacy stores as essential business sectors critical to protecting the health and well-being of all Californians and designated their workers as essential critical infrastructure workers; and WHEREAS, on December 3, 2020, Governor Newsom extended the “Stay Home – Stay Healthy” proclamation; and WHEREAS, on January 25, 2021, Governor Newsom lifted the stay-at-home order, returning California counties back to a “tiered” system; and Ordinance No. NS-XXX Page 2 of 10 WHEREAS, Orange County remains in the most restrictive purple tier, where many non-essential business operations remain closed and the virus widespread; and WHEREAS, as of February 25, 2021, the WHO Situation Report reported a global total of 112,209,815 confirmed cases of COVID-19, including 2,490,776 deaths; California reported 3,455,361 confirmed cases of COVID-19, including 49,877 deaths; and Santa Ana has reported 43,835 cases of COVID-19, including 688 deaths; and WHEREAS, grocery and retail pharmacy stores are essential businesses operating in Santa Ana during the COVID-19 emergency, making grocery and retail pharmacy workers highly vulnerable to economic insecurity and health or safety risks; and WHEREAS, grocery and retail pharmacy workers have been unable to work from home, including those with children engaged in distance learning, and have therefore likely incurred additional childcare expenses; and WHEREAS, grocery and retail pharmacy workers are essential workers who perform services that are fundamental to the economy and health of the community during the COVID-19 crisis. They work in high risk conditions with inconsistent access to protective equipment and other safety measures; work in public situations with limited ability to engage in physical distancing; and continually expose themselves and the public to the spread of disease; and WHEREAS, premium pay, paid in addition to regular wages, is an established type of compensation for employees performing hazardous duty or work involving physical hardship that can cause extreme physical discomfort and distress; and WHEREAS, during the early stages of the COVID-19 pandemic, many grocery companies provided premium pay, which was generally implemented as either a temporary hourly wage increase or a one-time bonus, but this practice has either generally been phased out or terminated; and WHEREAS, grocery and retail pharmacy workers working during the COVID-19 emergency merit additional compensation because they are performing hazardous duty due to the significant risk of exposure to the COVID-19 virus. Grocery and retail pharmacy workers have been working under these hazardous conditions for months. They are working in these hazardous conditions now and will continue to face safety risks as the virus presents an ongoing threat for an uncertain period, potentially resulting in subsequent waves of infection. Additionally, new and potentially more contagious variants of the coronavirus have now been detected in California; and WHEREAS, the availability of grocery and retail pharmacy stores is fundamental to the health of the community and is made possible during t he COVID-19 emergency because grocery and retail pharmacy workers are on the frontlines of this devastating pandemic supporting public health, safety, and welfare by working in hazardous situations; and Ordinance No. NS-XXX Page 3 of 10 WHEREAS, establishing a requirement for grocery and retail pharmacy stores to provide premium pay to grocery and retail pharmacy workers protects public health, supports stable incomes, and promotes job retention by ensuring that grocery and retail pharmacy workers are compensated for the substantial risks, efforts, and expenses they are undertaking to provide essential services in a safe and reliable manner during the COVID-19 emergency; and WHEREAS, the City Council finds that this Ordinance is necessary for the preservation of public peace, health, and safety of grocery and retail pharmacy workers working in Santa Ana. NOW, THEREFORE, the City Council of the City of Santa Ana ordains as follows: Section 1. Incorporation of Recitals. The findings and determinations reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Ordinance. Section 2. PREMIUM PAY FOR GROCERY AND RETAIL PHARMACY WORKERS Purpose. As a result of the COVID-19 pandemic and the “Stay at Home” order issued by California Governor Gavin Newsom, this Ordinance aims to protect and promote the public health, safety, and welfare during the new coronavirus 19 (“COVID-19”) emergency by requiring grocery and retail pharmacy stores to provide premium pay for grocery and retail pharmacy workers performing work in Santa Ana. Requiring grocery and retail pharmacy stores to provide premium pay to grocery and retail pharmacy workers compensates grocery and retail pharmacy workers for the risks of working during a pandemic. Grocery and retail pharmacy workers face magnified risks of catching and/or spreading the COVID-19 disease because the nature of their work involves close contact with the public, including members of the public who are not showing sympt oms of COVID-19 but who can spread the disease. The provision of premium pay better ensures the retention of these essential workers who are on the frontlines of this pandemic providing essential services and who are needed throughout the duration of the C OVID-19 emergency. As such, they are deserving of fair and equitable compensation for their work. Short title. This Ordinance shall constitute the “Premium Pay for Grocery and Retail Pharmacy Workers Ordinance” and may be cited as such. Definitions. For purposes of this Ordinance: Ordinance No. NS-XXX Page 4 of 10 “Adverse action” means reducing the compensation to a designated worker, garnishing gratuities, temporarily or permanently denying or limiting access to work, incentives, or bonuses, offering less desirable work, demoting, terminating, deactivating, putting a designated worker on hold status, failing to rehire after a seasonal interruption of work, threatening, penalizing, retaliating, or otherwise discriminating against a designated worker for any reason prohibited by this Ordinance. “Adverse action” also encompasses any action by the hiring entity or a person acting on the hiring entity’s behalf that would dissuade a designated worker from exercising any right afforded by this Ordinance. “Aggrieved party” means a designated worker or other person who suffers tangible or intangible harm due to a hiring entity or other person’s violation of this Ordinance. “City” means the City of Santa Ana. “Designated worker” means a grocery worker or retail pharmacy worker employed by a hiring entity who is entitled to premium pay pursuant to this Ordinance. “Grocery worker” means a worker employed by a hiring entity at a grocery store for hourly compensation, including a worker who has full -time employment, part-time employment, joint employment, temporary employment, or employment through the services of a temporary services or staffing agency. “Grocery store” means a store that devotes seventy percent (70%) or more of its business to retailing a general range of food products, which may be fresh or packaged, and/or a store that has at least fifteen thousand square feet (15,000 sf) of floor space dedicated to retailing a general range of food products. There is a rebuttable presumption that if a store receives seventy percent (70%) or more revenue from retailing a general range of food products, or if a store has at least fifteen thousand square feet (15,000 sf) of floor space dedicated to retailing a general range of food products, then it qualifies as a grocery store. “Hiring entity” means a grocery store or retail pharmacy that employs over three hundred (300) workers nationally and employs more than fifteen (15) employees per grocery store location or retail pharmacy location in the City of Santa Ana. For purposes of this section, the number of workers counted toward the national total shall encompass all employees who work for compensation, including employees not covered by this Ordinance. “Premium pay” means cash compensation owed to a designated worker that is in addition to the worker’s existing base salary, commissions, tips, gratuities, bonuses, or any other form of payment owed to the worker, including, but not limited to, any holiday, overtime, or vacation pay, or other benefits such as additional sick leave pay, retirement contributions, or store discounts. Ordinance No. NS-XXX Page 5 of 10 “Respondent” means a grocery store, retail pharmacy, parent company or any person who is alleged or found to have committed a violation of this Ordinance. “Retail pharmacy” means a corporate or chain (three or more locations nationally) pharmacy or publicly-traded company that is licensed as a pharmacy by the State of California and that dispenses medications to the general public at retail prices. Such term does not include a pharmacy that dispenses prescription medications to patients primarily through the mail, nursing h ome pharmacies, long- term care facility pharmacies, hospital pharmacies, clinics, charitable or not -for- profit pharmacies, government pharmacies, or pharmacy benefit managers. “Retail pharmacy worker” means a worker employed by a hiring entity at a retail pharmacy for hourly compensation, including a worker who has full-time employment, part-time employment, joint employment, temporary employment, or employment through the services of a temporary services or staffing agency. Designated worker coverage. For the purposes of this Ordinance, covered designated workers are limited to those who perform work for a hiring entity where the work is performed in the City of Santa Ana. Hiring entity coverage. A. For purposes of this Ordinance, hiring entities are limited to those who employ three hundred (300) or more designated workers nationally and employ more than fifteen (15) employees per grocery store or retail pharmacy location in the City of Santa Ana. B. To determine the number of designated workers employed for the current calendar year: 1. The calculation is based upon the average number per calendar week of designated workers who worked for compensation during the preceding calendar year for any and all weeks during which at least one (1) designated worker worked for compensation. For hiring entities that did not have any designated workers during the preceding calendar year, the number of designated workers employed for the current calendar year is calculated based upon the average number per calendar week of designated workers who worked for compensation during the first ninety (90) calendar days of the current year in which the hiring entity engaged in business. 2. All designated workers who worked for compensation shall be counted, including but not limited to: (a) Grocery workers and retail pharmacy workers who are not covered by this Ordinance; and Ordinance No. NS-XXX Page 6 of 10 (b) Designated workers who worked in Santa Ana. Premium pay requirement. A. Hiring entities shall provide each designated worker with premium pay consisting of an additional four dollars ($4.00) per hour for each hour worked. B. Hiring entities shall provide the pay required by this Ordinance for a minimum of one hundred twenty (120) days from the effective date of this Ordinance. C. If a hiring entity already provides hourly premium pay as of the effective date of this Ordinance, such compensation may be credited towards the additional four dollars per hour of premium pay required by this Ordinance. Accordingly, compliance with this Ordinance may be achieved if a hiring entity provides hourly premium pay in the full amount required by this Ordinance as of the effective date of this Ordinance and for the duration of its effectiveness, provided that all other requirements of this Ordinance are satisfied. In no event shall premium pay provided prior to the effective date of this Ordinance be credited towards the premium pay required by this Ordinance. D. Unless extended by the City Council, this Ordinance shall expire in one hundred twenty (120) days from its effective date. Designated worker and consumer protections. A. No hiring entity shall, as a result of this Ordinance going into effect, take any of the following actions: 1. Reduce a designated worker’s compensation compensation by reducing the base wage rate, overtime, holiday or other premium pay rate, hours of work, vacation, pension contributions, or other non -wage benefits of any designated worker, or by increasing charges to any designated worker for parking, uniforms, meals, or other work-related materials or equipment; 2. Limit a designated worker’s earning capacity. B. It shall be a violation if this Ordinance is a motivating factor in a hiring entity’s decision to take any of the actions immediately above, unless the hiring entity can prove that its decision to take the action(s) would have happened in the absence of this Ordinance going into effect. Notice of rights. A. Hiring entities shall provide covered designated workers with a written notice of rights established by this Ordinance. The notice of rights shall be in a form and manner sufficient to inform designated workers of their rights under this Ordinance. The notice of rights shall provide information on: Ordinance No. NS-XXX Page 7 of 10 1. The right to premium pay guaranteed by this Ordinance; 2. The right to be protected from retaliation for exercising in good faith the rights protected by this Ordinance; and 3. The right to bring a civil action for a violation of the requirements of this Ordinance, including a hiring entity’s denial of premium pay as required by this Ordinance and a hiring entity or other person’s retaliation against a covered designated worker or other person for asserting the right to premium pay or otherwise engaging in an activity protected by this Ordinance. B. Hiring entities shall provide the notice of rights required by posting a written notice of rights in a location of the grocery store or retail pharmacy location utilized by employees for breaks, and in an electronic format that is readily accessible to the designated workers. The notice of rights shall be made available to the designated workers via smartphone application or an online web portal, in English and any language that the hiring entity knows or has reason to know is the primary language of the designated worker(s). Hiring entity records. A. Hiring entities shall retain records that document compliance with this Ordinance for covered designated workers. B. Hiring entities shall retain the records required above for a period of two (2) years. C. If a hiring entity fails to retain adequate records required under the Ordinance, there shall be a presumption, rebuttable by clear and convincing evidence, that the hiring entity violated this Ordinance for each covered designated worker for whom records were not retained. Retaliation prohibited. No hiring entity employing a designated worker shall discharge, reduce in compensation, or otherwise discriminate against any designated worker for opposing any practice proscribed by this Ordinance, for participating in proceedings related to this Ordinance, for seeking to exercise their rights under this Ordinance by any lawful means, or for otherwise asserting rights under this Ordinance. Violation. The failure of any respondent to comply with any requirement imposed on the respondent under this Ordinance is a violation. Ordinance No. NS-XXX Page 8 of 10 Remedies. A. The payment of unpaid compensation, liquidated damages, civil penalties, penalties payable to aggrieved parties, fines, and interest provided under this Ordinance is cumulative and is not intended to be exclusive of any other available remedies, penalties, fines, and procedures. B. A respondent found to be in violation of this Ordinance for retaliation prohibited by this Ordinance shall be subject to any appropriate relief at law or equity including, but not limited to reinstatement of the aggrieved party, front pay in lieu of reinstatement with full payment of unpaid compensation plus interest in favor of the aggrieved party under the terms of this Ordinance, and liquidated damages in an additional amount of up to twice the unpaid compensation. Private right of action. Any covered designated worker that suffers financial injury as a result of a violation of this Ordinance, or is the subject of retaliation prohibited by this Ordinance, may bring a civil action in a court of competent jurisdiction against the hiring entity or other person violating this Ordinance and, upon prevailing, may be awarded reasonable attorney’s fees and costs and such legal or equitable relief as may be appropriate to remedy the violation including, without limitation: the payment of any unpaid compensation plus interest due to the person and liquidated damages in an additional amount of up to twice the unpaid compensation; and a reasonable penalty payable to any aggrieved party if the aggrieved party was subject to prohibited retaliation. Encouragement of more generous policies. A. Nothing in this Ordinance shall be construed to discourage or prohibit a hiring entity from the adoption or retention of premium pay policies more generous than the one required herein. B. Nothing in this Ordinance shall be construed as diminishing the obligation of a hiring entity to comply with any contract or other agreement providing more generous protections to a designated worker than required by this Ordinance. Other legal requirements. This Ordinance provides minimum requirements for premium pay while working for a hiring entity during the COVID-19 emergency and shall not be construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, requirement, policy, or standard that provides for higher premium pay, or that extends other protections to designated workers; and nothing in this Ordinance shall be interpreted or applied so as to create any power or duty in conflict with federal or state law. Nothing in this Ordinance shall be construed as Ordinance No. NS-XXX Page 9 of 10 restricting a designated worker’s right to pursue any other remedies at law or equity for violation of their rights. Severability. The provisions of this Ordinance are declared to be separate and severable. If any clause, sentence, paragraph, subdivision, section, subsection, or portion of this Ordinance, or the application thereof to any hiring entity, designated worker, person, or circumstance, is held to be invalid, it shall not affect the validity of the remainder of this Ordinance, or the validity of its application to other persons or circumstances. Exemption for collective bargaining agreement. All of the provisions of this Ordinance, or any part thereof, may be expressly waived in a collective bargaining agreement, but only if the waiver is explicitly set forth in the agreement in clear and unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute a waiver of all or any of the provisions of this Ordinance. No waiver of rights. Except for a collective bargaining agreement provision made pursuant to this Ordinance, any waiver by a designated worker of any or all provisions of this Ordinance shall be deemed contrary to public policy and shall be void and unenforceable. Other than in connection with the bona fide negotiation of a collective bargaining agreement, any request by a hiring entity to a designated worker to waive rights given by this Ordinance shall be a violation of this Ordinance. Section 3. CEQA. The City Council determines that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to the following provisions of the CEQA Guidelines, 14 California Code of Regulations, Chapter 3: this Ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a “project” under CEQA, and will not result in dire ct or indirect physical changes in the environment. Section 4. Severability. If any section or provision of this Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. Ordinance No. NS-XXX Page 10 of 10 Section 5. Adoption, Certification, and Publication. The Clerk of the Council shall certify the adoption of this Ordinance and shall cause the same to be published as required by law. ADOPTED this ______ day of _________, 2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:_________________________ John M. Funk Sr. Assistant City Attorney AYES: Councilmembers ______________________________________ NOES: Councilmembers _______________________________________ ABSTAIN: Councilmembers _______________________________________ NOT PRESENT: Councilmembers _______________________________________ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on _______________, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: ________________ ____________________________________ Clerk of the Council City of Santa Ana Ordinance No. NS-XXX Page 1 of 11 ORDINANCE NO. NS-XXX AN UNCODIFIED URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA ESTABLISHING PREMIUM PAY AND ASSOCIATED LABOR PROTECTIONS FOR GROCERY AND RETAIL PHARMACY WORKERS WORKING IN SANTA ANA City Attorney Summary The Urgency Ordinance aims to protect and promote the public health, safety, and welfare during the COVID-19 emergency by requiring grocery and retail pharmacy stores to provide premium pay for grocery and retail pharmacy workers performing work in Santa Ana. WHEREAS, the new coronavirus 19 (“COVID-19”) disease is caused by a virus that spreads easily from person to person and may result in serious illness or death, and is classified by the World Health Organization (“WHO”) as a worldwide pandemic; and WHEREAS, COVID-19 has broadly spread throughout California and remains a significant health risk to the community, especially members of our most vulnerable populations; and WHEREAS, on March 4, 2020, California Governor Gavin Newsom proclaimed a state of emergency in response to new cases of COVID-19, directing state agencies to use all resources necessary to prepare for and respond to the outbreak; and WHEREAS, on March 17, 2020, the City Council approved Resolution No. 2020 - 016 proclaiming the existence of a local emergency regarding COVID-19 and authorizing the City Manager to exercise the emergency powers necessary to take extraordinary measures to prevent death or injury of persons and to protect the public peace, safety and welfare; and WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued a “Stay Home – Stay Healthy” proclamation closing all non-essential workplaces, requiring people to stay home except to participate in essential activities or to provide essential business services, and banning all gatherings for social, spiritual, and recreational purposes. In addition to healthcare, public health and emergency services, the “Stay Home – Stay Healthy” proclamation identified grocery and retail pharmacy stores as essential business sectors critical to protecting the health and well-being of all Californians and designated their workers as essential critical infrastructure workers; and WHEREAS, on December 3, 2020, Governor Newsom extended the “Stay Home – Stay Healthy” proclamation; and WHEREAS, on January 25, 2021, Governor Newsom lifted the stay-at-home order, returning California counties back to a “tiered” system; and Ordinance No. NS-XXX Page 2 of 11 WHEREAS, Orange County remains in the most restrictive purple tier, where many non-essential business operations remain closed and the virus widespread; and WHEREAS, as of February 25, 2021, the WHO Situation Report reported a global total of 112,209,815 confirmed cases of COVID-19, including 2,490,776 deaths; California reported 3,455,361 confirmed cases of COVID-19, including 49,877 deaths; and Santa Ana has reported 43,835 cases of COVID-19, including 688 deaths; and WHEREAS, grocery and retail pharmacy stores are essential businesses operating in Santa Ana during the COVID-19 emergency, making grocery and retail pharmacy workers highly vulnerable to economic insecurity and health or safety risks; and WHEREAS, grocery and retail pharmacy workers have been unable to work from home, including those with children engaged in distance learning, and have therefore likely incurred additional childcare expenses; and WHEREAS, grocery and retail pharmacy workers are essential workers who perform services that are fundamental to the economy and health of the community during the COVID-19 crisis. They work in high risk conditions with inconsistent access to protective equipment and other safety measures; work in public situations with limited ability to engage in physical distancing; and continually expose themselves and the public to the spread of disease; and WHEREAS, premium pay, paid in addition to regular wages, is an established type of compensation for employees performing hazardous duty or work involving physical hardship that can cause extreme physical discomfort and distress; and WHEREAS, during the early stages of the COVID-19 pandemic, many grocery companies provided premium pay, which was generally implemented as either a temporary hourly wage increase or a one-time bonus, but this practice has either generally been phased out or terminated; and WHEREAS, grocery and retail pharmacy workers working during the COVID-19 emergency merit additional compensation because they are performing hazardous duty due to the significant risk of exposure to the COVID-19 virus. Grocery and retail pharmacy workers have been working under these hazardous conditions for months. They are working in these hazardous conditions now and will continue to face safety risks as the virus presents an ongoing threat for an uncertain period, potentially resulting in subsequent waves of infection. Additionally, new and potentially more contagious variants of the coronavirus have now been detected in California; and WHEREAS, the availability of grocery and retail pharmacy stores is fundamental to the health of the community and is made possible during the COVID-19 emergency because grocery and retail pharmacy workers are on the frontlines of this devastating pandemic supporting public health, safety, and welfare by working in hazardous situations; and Ordinance No. NS-XXX Page 3 of 11 WHEREAS, establishing an immediate requirement for grocery and retail pharmacy stores to provide premium pay to grocery and retail pharmacy workers protects public health, supports stable incomes, and promotes job retention by ensuring that grocery and retail pharmacy workers are compensated for the substantial risks, efforts, and expenses they are undertaking to provide essential services in a safe and reliable manner during the COVID-19 emergency; and WHEREAS, the City Council finds that this Ordinance is necessary for the preservation of public peace, health, and safety of grocery and retail pharmacy workers working in Santa Ana and finds urgency to approve this Ordinance immediately based on the facts described herein and detailed in the staff report. NOW, THEREFORE, the City Council of the City of Santa Ana ordains as follows: Section 1. Incorporation of Recitals. The findings and determinations reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by and through this Urgency Ordinance. Section 2. PREMIUM PAY FOR GROCERY AND RETAIL PHARMACY WORKERS Purpose. As a result of the COVID-19 pandemic and the “Stay at Home” order issued by California Governor Gavin Newsom, this Ordinance aims to protect and promote the public health, safety, and welfare during the new coronavirus 19 (“COVID-19”) emergency by requiring grocery and retail pharmacy stores to provide premium pay for grocery and retail pharmacy workers performing work in Santa Ana. Requiring grocery and retail pharmacy stores to provide premium pay to grocery and retail pharmacy workers compensates grocery and retail pharmacy workers for the risks of working during a pandemic. Grocery and retail pharmacy workers face magnified risks of catching and/or spreading the COVID-19 disease because the nature of their work involves close conta ct with the public, including members of the public who are not showing symptoms of COVID -19 but who can spread the disease. The provision of premium pay better ensures the retention of these essential workers who are on the frontlines of this pandemic pro viding essential services and who are needed throughout the duration of the COVID -19 emergency. As such, they are deserving of fair and equitable compensation for their work. Short title. This Ordinance shall constitute the “Premium Pay for Grocery and Retail Pharmacy Workers Ordinance” and may be cited as such. Definitions. For purposes of this Ordinance: Ordinance No. NS-XXX Page 4 of 11 “Adverse action” means reducing the compensation to a designated worker, garnishing gratuities, temporarily or permanently denying or limiting access to work, incentives, or bonuses, offering less desirable work, demoting, terminating, deactivating, putting a designated worker on hold status, failing to rehire after a seasonal interruption of work, threatening, penalizing, retaliating, or otherwise discriminating against a designated worker for any reason prohibited by this Ordinance. “Adverse action” also encompasses any action by the hiring entity or a person acting on the hiring entity’s behalf that would dissuade a designated worker from exercising any right afforded by this Ordinance. “Aggrieved party” means a designated worker or other person who suffers tangible or intangible harm due to a hiring entity or other person’s violation of this Ordinance. “City” means the City of Santa Ana. “Designated worker” means a grocery worker or retail pharmacy worker employed by a hiring entity who is entitled to premium pay pursuant to this Ordinance. “Grocery worker” means a worker employed by a hiring entity at a grocery store for hourly compensation, including a worker who has full -time employment, part-time employment, joint employment, temporary employment, or employment through the services of a temporary services or staffing agency. “Grocery store” means a store that devotes seventy percent (70%) or more of its business to retailing a general range of food products, which may be fresh or packaged, and/or a store that has at least fifteen thousand square feet (15,000 sf) of floor space dedicated to retailing a general range of food products. There is a rebuttable presumption that if a store receives seventy percent (70%) or more revenue from retailing a general range of food products, or if a store has at least fifteen thousand square feet (15,000 sf) of floor space dedicated to retailing a general range of food products, then it qualifies as a grocery store. “Hiring entity” means a grocery store or retail pharmacy that employs over three hundred (300) workers nationally and employs more than fifteen (15) employees per grocery store location or retail pharmacy location in the City of Santa Ana. For purposes of this section, the number of workers counted toward the national total shall encompass all employees who work for compens ation, including employees not covered by this Ordinance. “Premium pay” means cash compensation owed to a designated worker that is in addition to the worker’s existing base salary, commissions, tips, gratuities, bonuses, or any other form of payment owed to the worker, including, but not limited to, any holiday, overtime, or vacation pay, or other benefits such as additional sick leave pay, retirement contributions, or store discounts. Ordinance No. NS-XXX Page 5 of 11 “Respondent” means a grocery store, retail pharmacy, parent company or any person who is alleged or found to have committed a violation of this Ordinance. “Retail pharmacy” means a corporate or chain (three or more locations nationally) pharmacy or publicly-traded company that is licensed as a pharmacy by the State of California and that dispenses medications to the general public at retail prices. Such term does not include a pharmacy that dispenses prescription medications to patients primarily through the mail, nursing home pharmacies, long - term care facility pharmacies, hospital pharmacies, clinics, charitable or not-for- profit pharmacies, government pharmacies, or pharmacy benefit managers. “Retail pharmacy worker” means a worker employed by a hiring entity at a retail pharmacy for hourly compensation, including a worker who has full-time employment, part-time employment, joint employment, temporary employment, or employment through the services of a temporary services or staffing agency. Designated worker coverage. For the purposes of this Ordinance, covered designated workers are limited to those who perform work for a hiring entity where the work is performed in the City of Santa Ana. Hiring entity coverage. A. For purposes of this Ordinance, hiring entities are limited to those who employ three hundred (300) or more designated workers nationally and employ more than fifteen (15) employees per grocery store or retail pharmacy location in the City of Santa Ana. B. To determine the number of designated workers employed for the current calendar year: 1. The calculation is based upon the average number per calendar week of designated workers who worked for compensation during the preceding calendar year for any and all weeks during which at least one (1) designated worker worked for compensation. For hiring entities that did not have any designated workers during the preceding calendar year, the number of designated workers employed for the current calendar year is calculated based upon the average number per calendar week of designated workers who worked for compensation during the first ninety (90) calendar days of the current year in which the hiring entity engaged in business. 2. All designated workers who worked for compensation shall be counted, including but not limited to: (a) Grocery workers and retail pharmacy workers who are not covered by this Ordinance; and Ordinance No. NS-XXX Page 6 of 11 (b) Designated workers who worked in Santa Ana. Premium pay requirement. A. Hiring entities shall provide each designated worker with premium pay consisting of an additional four dollars ($4.00) per hour for each hour worked. B. Hiring entities shall provide the pay required by this Ordinance for a minimum of one hundred twenty (120) days from the effective date of this Ordinance. C. If a hiring entity already provides hourly premium pay as of the effective date of this Ordinance, such compensation may be credited towards the additional four dollars per hour of premium pay required by this Ordinance. Accordingly, compliance with this Ordinance may be achieved if a hiring entity provides hourly premium pay in the full amount required by this Ordinance as of the effective date of this Ordinance and for the duration of its effectiveness, provided that all other requirements of this Ordinance are satisfied. In no event shall premium pay provided prior to the effective date of this Ordinance be credited towards the premium pay required by this Ordinance. D. Unless extended by the City Council, this Ordinance shall expire in one hundred twenty (120) days from its effective date. Designated worker and consumer protections. A. No hiring entity shall, as a result of this Ordinance going into effect, take any of the following actions: 1. Reduce a designated worker’s compensation compensation by reducing the base wage rate, overtime, holiday or other premium pay rate, hours of work, vacation, pension contributions, or other non -wage benefits of any designated worker, or by increasing charges to any designated worker for parking, uniforms, meals, or other work-related materials or equipment; 2. Limit a designated worker’s earning capacity. B. It shall be a violation if this Ordinance is a motivating factor in a hiring entity’s decision to take any of the actions immediately above, unless the hiring entity can prove that its decision to take the action(s) would have happened in the absence of this Ordinance going into effect. Notice of rights. A. Hiring entities shall provide covered designated workers with a written notice of rights established by this Ordinance. The notice of rights shall be in a form and manner sufficient to inform designated workers of their rights under this Ordinance. The notice of rights shall provide information on: Ordinance No. NS-XXX Page 7 of 11 1. The right to premium pay guaranteed by this Ordinance; 2. The right to be protected from retaliation for exercising in good faith the rights protected by this Ordinance; and 3. The right to bring a civil action for a violation of the requirements of this Ordinance, including a hiring entity’s denial of premium pay as required by this Ordinance and a hiring entity or other person’s retaliation against a covered designated worker or other person for asserting the right to premium pay or otherwise engaging in an activity protected by this Ordinance. B. Hiring entities shall provide the notice of rights required by posting a written notice of rights in a location of the grocery store or retail pharmacy location utilized by employees for breaks, and in an electronic format that is readily accessible to the designated workers. The notice of rights shall be made available to the designated workers via smartphone application or an online web portal, in English and any language that the hiring entity knows or has reason to know is the primary language of the designated worker(s). Hiring entity records. A. Hiring entities shall retain records that document compliance with this Ordinance for covered designated workers. B. Hiring entities shall retain the records required above for a period of two (2) years. C. If a hiring entity fails to retain adequate records required under the Ordinance, there shall be a presumption, rebuttable by clear and convincing evidence, that the hiring entity violated this Ordinance for each covered designated worker for whom records were not retained. Retaliation prohibited. No hiring entity employing a designated worker shall discharge, reduce in compensation, or otherwise discriminate against any designated worker for opposing any practice proscribed by this Ordinance, for participating in proceedings related to this Ordinance, for seeking to exercise their rights under this Ordinance by any lawful means, or for otherwise asserting rights under this Ordinance. Violation. The failure of any respondent to comply with any requirement imposed on the respondent under this Ordinance is a violation. Ordinance No. NS-XXX Page 8 of 11 Remedies. A. The payment of unpaid compensation, liquidated damages, civil penalties, penalties payable to aggrieved parties, fines, and interest provided under this Ordinance is cumulative and is not intended to be exclusive of any other available remedies, penalties, fines, and procedures. B. A respondent found to be in violation of this Ordinance for retaliation prohibited by this Ordinance shall be subject to any appropriate relief at law or equity including, but not limited to reinstatement of the aggrieved party, front pay in lieu of reinstatement with full payment of unpaid compensation plus interest in favor of the aggrieved party under the terms of this Ordinance, and liquidated damages in an additional amount of up to twice the unpaid compensation. Private right of action. Any covered designated worker that suffers financial injury as a result of a violation of this Ordinance, or is the subject of retaliation prohibited by this Ordinance, may bring a civil action in a court of competent jurisdiction against the hiring entity or other person violating this Ordinance and, upon prevailing, may be awarded reasonable attorney’s fees and costs and such legal or equitable relief as may be appropriate to remedy the violation including, without limitation: the payment of any unpaid compensation plus interest due to the person and liquidated damages in an additional amount of up to twice the unpaid compensation; and a reasonable penalty payable to any aggrieved party if the aggrieved party was subject to prohibited retaliation. Encouragement of more generous policies. A. Nothing in this Ordinance shall be construed to discourage or prohibit a hiring entity from the adoption or retention of premium pay policies more generous than the one required herein. B. Nothing in this Ordinance shall be construed as diminishing the obligation of a hiring entity to comply with any contract or other agreement providing more generous protections to a designated worker than required by this Ordinance. Other legal requirements. This Ordinance provides minimum requirements for premium pay while working for a hiring entity during the COVID-19 emergency and shall not be construed to preempt, limit, or otherwise affect the applicability of any other law, regulation, requirement, policy, or standard that provides for higher premium pay, or that extends other protections to designated workers; and nothing in this Ordinance shall be interpreted or applied so as to create any power or duty in conflict with federal or state law. Nothing in this Ordinance shall be construed as Ordinance No. NS-XXX Page 9 of 11 restricting a designated worker’s right to pursue any other remedies at law or equity for violation of their rights. Severability. The provisions of this Ordinance are declared to be separate and severable. If any clause, sentence, paragraph, subdivision, section, subsection, or portion of this Ordinance, or the application thereof to any hiring entity, designated worker, person, or circumstance, is held to be invalid, it shall not affect the validity of the remainder of this Ordinance, or the validity of its application to other persons or circumstances. Exemption for collective bargaining agreement. All of the provisions of this Ordinance, or any part thereof, may be expressly waived in a collective bargaining agreement, but only if the waiver is explicitly set forth in the agreement in clear and unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute a waiver of all or any of the provisions of this Ordinance. No waiver of rights. Except for a collective bargaining agreement provision made pursuant to this Ordinance, any waiver by a designated worker of any or all provisions of this Ordinance shall be deemed contrary to public policy and shall be void and unenforceable. Other than in connection with the bona fide negotiation of a collective bargaining agreement, any request by a hiring entity to a designated worker to waive rights given by this Ordinance shall be a violation of this Ordinance. Section 3. Urgency Findings. Pursuant to Santa Ana City Charter Sections 415 and 417, this Ordinance is declared by the City Council to be necessary as an emergency measure to protect and preserve the health, safety and welfare of the citizens of the City of Santa Ana and will become effective immediately if passed by the affirmative votes of at least two-thirds (2/3) of the members of the City Council. The City Council hereby finds that there is an urgent need to adopt these regulations in order to address the current and immediate threats set forth above. Given the uncertain and evolving nature of the COVID- 19 pandemic, the premium pay and associated protections must be immediately implemented to ensure that grocery and retail pharmacy workers continue working and providing these essential services to the residents of Santa Ana and the region generally. These workers have already been working for many months through this pandemic. Grocery and retail pharmacy workers face magnified risks of catching and/or spreading COVID-19 because the nature of their work involves close contact with the public, including members of the public who are not showing symptoms of COVID -19 but who can still transmit the disease. The provision of premium pay better ensures the retention of these essential workers who are on the frontlines of this pandemic providing essential Ordinance No. NS-XXX Page 10 of 11 services and who are needed throughout the duration of it. This urgency ordinance is needed during the emergency in the interest of maintaining access to and continuity in essential grocery and pharmacy services. Section 4. CEQA. The City Council determines that the adoption of this Urgency Ordinance is exempt from environmental review under the California Environmental Quality Act (“CEQA”) pursuant to the following provisions of the CEQA Guidelines, 14 California Code of Regulations, Chapter 3: this Urgency Ordinance is exempt under CEQA Guidelines Section 15378(b)(5) in that it is not a “project” under CEQA, and will not result in direct or indirect physical changes in the environment. Section 5. Severability. If any section or provision of this Urgency Ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Urgency Ordinance shall remain valid. The City Council hereby declares that it would have adopted this Urgency Ordinance, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. Section 6. Adoption, Certification, and Publication. The Clerk of the Council shall certify the adoption of this Ordinance and shall cause the same to be published as required by law. ADOPTED this ______ day of _________, 2021. Vicente Sarmiento Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:_________________________ John M. Funk Sr. Assistant City Attorney Ordinance No. NS-XXX Page 11 of 11 AYES: Councilmembers ______________________________________ NOES: Councilmembers _______________________________________ ABSTAIN: Councilmembers _______________________________________ NOT PRESENT: Councilmembers _______________________________________ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Daisy Gomez, Clerk of the Council, do hereby attest to and certify the attached Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on _______________, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: ________________ ____________________________________ Clerk of the Council City of Santa Ana Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 1Premium Pay for Grocery and Retail Pharmacy Workers Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 2Background Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 3Premium Pay• Premium pay, such as a “hazard pay” or “hero pay” is wages paid to an employee in addition to regular wages. • Premium pay is an established type of compensation for employees performing hazardous duty or work involving physical hardship that can cause extreme physical discomfort and distress. Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 4Other Jurisdictions with Premium Pay Ordinances• County of Los Angeles• City and County of San Francisco• Buena Park• Irvine• Long Beach• Los Angeles• Montebello• Oakland• Santa Monica Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 5Proposed Ordinance Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 6Grocery Store and Retail Pharmacy Applicability• Applies to certain grocery stores and retail pharmacies which employ over 300 workers nationally and more than 15 employees per grocery store location or retail pharmacy location in Santa Ana Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 7Premium Pay Wages for Designated Workers• The ordinance requires hiring entities to provide each designated worker with premium pay consisting of an additional $4 cash per hour for each hour worked.• For the purposes of the ordinance, “designated worker” means a grocery worker or retail pharmacy worker employed by a hiring entity who is entitled to premium pay pursuant to the ordinance. Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 8Recognition of Premium Pay Already Being Provided• If a grocery store or retail pharmacy already provides hourly premium pay, such compensation may be credited toward the additional $4 per hour of premium pay (and achieving compliance if such pay is in the full amount of $4). Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 9Duration of Premium Pay• The ordinance requires premium pay for designated workers for 120 days, beginning on the effective date of the ordinance. Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 10Notice of Rights• Grocery stores and retail pharmacies must advise their employees of their rights under the ordinance, including their right to premium pay guaranteed by the ordinance. Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 11Private Right of Action• A designated worker that suffers financial injury as a result of a violation of the ordinance or is the subject of retaliation may bring a civil action in a court of competent jurisdiction against the hiring entity or other person violating the ordinance. Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 12Options Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 131. Adopt an urgency ordinance establishing premium pay for grocery workers and retail pharmacy workers.2. Approve first reading of an ordinance establishing premium pay for grocery workers and retail pharmacy workers. Premium Pay for Grocery and Retail Pharmacy WorkersCity Manager’s OfficeMarch 2, 2021Slide 14Questions?