The California Grocers Association (CGA) has appealed a U.S. District Judge’s decision to deny a preliminary injunction that would have abated a Long Beach ordinance requiring grocery store owners to pay an additional $4 in hourly “hero pay” to their workers.
"The Court’s decision today is limited,” U.S. District Judge Otis Wright stated in his Feb. 25 ruling. “It does not purport to reach whether the Ordinance violates the Contract Clause. Perhaps an argument could be made that it does. What matters for now is that CGA has not shown a likelihood that this is the case. In summary, CGA fails to establish a likelihood of success on any of its claims."
As previously reported, CGA sued the city of Long Beach in Central District federal court, alleging that legislating extra pay mandates violate the National Labor Relations Act, the U.S. Constitution, and the California Constitution’s Equal Protection Clause.
“There is a legal argument to be made that government bodies are infringing upon collective bargaining agreements,” said Stuart Waldman, president of the Valley Industry and Commerce Association (VICA). “Deals are made between the unions and the grocery stores and to add additional requirements onto that by a governmental entity is infringing upon that agreement.”
Also known as premium or hazard pay, hero pay started as a temporary boost in wages provided frontline grocery store workers but has extended to include other industries in other California cities.
“The judge felt that the parties could go through the normal course of a lawsuit and that remedies could be had after the fact,” Waldman told the Southern California Record. “He didn’t rule on the merits. He just ruled that the mandated pay didn't need to be stopped right away.”
The city of Coachella approved an ordinance on Feb. 10 mandating an additional $4 an hour in pay for grocery store, pharmacy, restaurant, and agricultural workers at companies with more than 300 employees nationally and more than five employees in Coachella.
CGA has also sued the cities of Montebello, Daly, San Jose, Oakland, San Leandro, and West Hollywood but, so far, the city of Coachella has been spared.
“The California Grocers Association is within their rights to challenge these ordinances if they feel it's necessary,” said Megan Beaman Jacinto, an attorney, and member of the Coachella City Council. “It's unfortunate that some industries and businesses would rather close up shop or threaten to close up shop or spend a lot of money on legal fees rather than spending those same funds on benefits and support for their workers.”
Kroger announced it would close a Ralphs and Food 4 Less in Long Beach in April after the Long Beach City Council passed its hero pay ordinance in January.
“As we said weeks ago, extra pay ordinances will have negative consequences and harm customers and workers,” said Ron Fong, president, and CEO of CGA. “Closures means workers stand to lose their good-paying jobs with generous benefits. Customers lose access to a neighborhood grocery close by. It’s a lose-lose all the way around and it is the direct result of elected officials who are passing these unworkable and costly mandates.”