Following a trend set by neighboring San Mateo County cities, Redwood City will consider instituting a hazard pay ordinance Monday night, requiring large grocery and drugstores to compensate employees for working during the pandemic.
Customer-facing employees of stores with more than 750 employees nationwide would receive $5 in hazard pay on top of base pay, given the store devotes 10% or more of its space to selling groceries or devotes 70% of its business to selling pharmaceuticals, cosmetics, food products and other goods.
“Many of these grocery store workers face high turnover since their role as an essential worker has meant longer hours and increased exposure to the novel coronavirus,” according to the staff report. “And they now have added responsibilities of disinfecting stores, enforcing social distancing, and monitoring mask-wearing amongst their customers.”
About 10 stores with 13 locations would fall under the ordinance according to staff research, including Costco, Grocery Outlet, Lucky’s, Nob Hill, Rite Aid, Smart and Final, Target, Whole Foods, two Safeways and three CVS. The ordinance could also apply to four 7-Elevens locations and a Dollar Tree store.
A credit would be given to any store that already offers its employees’ hazard pay and retroactive pay, as done in other cities, would not be required. If approved by a supermajority vote, the emergency ordinance would go into effect immediately and would expire on July 11 unless reenacted.
Other Peninsula cities have instituted hazard pay for grocery and drugstore employees including South San Francisco, Daly City, San Mateo and Millbrae. San Carlos considered pursuing a so-called “heroes pay” ordinance but ultimately opted against it. The San Mateo County Board of Supervisors also considered a similar measure but have yet to formally take up the item.
The California Grocers Association has pledged to pursue legal action against any jurisdiction that institutes the extra pay laws with claims that the requirements violate federal collective bargaining laws. The association has also argued extra pay ordinances unfairly single out the grocery industry, violating the Constitution’s Equal Protection Clause.
“Hazard pay ordinances are an extraordinary response to extraordinary challenges inflicted upon the communities across the state by the COVID-19 pandemic,” staff said. “The grocery store industry argues that hazard pay ordinances simply go too far in attempting to address the pandemic’s impacts on grocery store workers.”
By approving an urgency and regular ordinance, City Attorney Veronica Ramirez told the council the city would have an extra layer of legal defense during its March 8 council meeting. The regular ordinance would take effect 30 days after the second reading, slated for May 26 if the council approves the measure.
While some councilmembers were eager to pursue hazard pay, including Councilmember Lissette Espinoza-Garnica who proposed the ordinance, others were also concerned the requirement would hurt small employers or would fail to provide additional pay to other front-line workers.
A two-week survey conducted by the city also shows mixed responses to the additional pay. Of the 304 survey responses from grocery and drugstore employees, 304 live in Redwood City and 200 of those individuals supported the hazard pay.
The remaining 104 residents surveyed showed hesitance for the ordinance given how late into the pandemic the law is being considered and the potential for increased grocery prices. Most non-Redwood City residents supported the ordinance.
Staff surveys of businesses showed a mostly positive response to the ordinance though some indicated the $5 pay could jeopardize their stores.
“Some grocery store representatives believed adoption of a hazard pay would throw off their budgets, but that they can adapt,” according to the staff report. “And others expressed that hazard pay would create stability for their team and ease the pressure to work multiple jobs.
The City Council will meet remotely via Zoom at 7 p.m. Monday, April 12, and will be streamed live at www.redwoodcity.org and on Comcast Channel 27 and AT&T U-verse Channel 99. Remote public comments will be received by telephone during the meeting, prior to the close of public comment on an item. *67 (669) 900-6833, Meeting ID: 994 8182 5639.
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April 10, 2021 at 06:30PM
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