Judge Nixes Grocery Retention Law

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Local grocery chains cheered a tentative court ruling issued late Thursday overturning the city of L.A.’s grocery worker retention ordinance.


L.A. Superior Court Judge Ralph Dau issued a tentative ruling voiding the city ordinance that passed in December 2005 that required supermarket retailers to retain existing workers for 90 days after any market with more than 15,000 square feet changes ownership. The law was passed after pressure from unions seeking to retain unionized workforces as the supermarket industry has consolidated; however, it exempts markets with collective bargaining agreements.


The California Grocers Association challenged the ordinance, saying it violated the state food and safety code and that it violated equal protection laws by setting an arbitrary size threshold and discriminating between those stores that have collective bargaining agreements and those that don’t.


Dau sided with the grocers in his tentative ruling. The decision becomes final if no party raises issues or proposes modifications by Nov. 5.


“We are pleased with Judge Dau’s tentative ruling,” said Peter Larkin, president of the California Grocers Association. “Since the Grocery Worker Retention Ordinance has been in effect, sales of grocery stores from one operator to another in the City of Los Angeles have ceased. Stopping the growth of new retail in the city demonstrates the first of many harmful impacts this law will have on city residents. We look forward to a final ruling from the court.”


Nick Velasquez, spokesman for City Attorney Rocky Delgadillo, issued a brief statement, saying “We are still studying the ruling.”

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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