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HomeMy WebLinkAbout11 - NB-2 - Hazard Pay for Frontline Grocery Workers - 2/2/2021 1 CITY COUNCIL AGENDA REPORT MEETING DATE: FEBRUARY 2, 2021 ITEM NUMBER: NB-2 SUBJECT: HAZARD PAY FOR FRONTLINE GROCERY WORKERS DATE: JANUARY 26, 2021 FROM: LORI ANN FARRELL HARRISON, CITY MANAGER PRESENTATION BY: LORI ANN FARRELL HARRISON, CITY MANAGER FOR FURTHER INFORMATION CONTACT: ALMA REYES, ASSISTANT TO THE CITY MANAGER (714) 754-5090 RECOMMENDATION: Staff is seeking Council direction to request the City Attorney draft an urgency ordinance for consideration at a future City Council meeting requiring local grocers to provide hazard pay to their employees for a defined period during the pandemic. BACKGROUND & ANALYSIS: Per Mayor Katrina Foley’s request, staff is bringing forward for City Council discussion an urgency ordinance that requires local grocers to provide frontline grocery workers hazard pay at a rate of $4 per hour over their existing hourly pay, to sunset in 120 days. Since March 2020, the COVID-19 pandemic has drastically impacted many lives across the country. As of January 25, 2021, there have been 419,827 total deaths due to COVID- 19 in the country, including 2,768 in Orange County and 77 in Costa Mesa. On December 6, 2020, Governor Gavin Newsom issued a statewide stay-at-home due to the staggering numbers of positive COVID-19 cases. The order strictly limited capacity and in some cases the closure of a number of businesses including gyms, salons, barbershops, recreational facilities, restaurants, and bars. The global health pandemic has highlighted the importance of many workers and industries as essential, including frontline grocery workers. Millions of grocery workers nationwide have had to face new hazards due to the virus in jobs not previously considered especially dangerous. Frontline grocery workers play a critical role in providing food, supplies, and medicine to the public. 2 As a response to the shifting emergency circumstances during the early stages of the pandemic, a number of grocery companies initially provided extra COVID-19 related compensation to their employees. The extra compensation, commonly known as “Hero Pay,” was a temporarily wage increase or a one-off bonus for essential workers. However, the impacts of the pandemic subsided in June, resulting in many retail companies ending their temporary wage increase, and they have yet to make the commitment to reinstate it. Should the City Council desire to support this request, staff will work with the City Attorney’s office to draft an urgency ordinance requiring local grocers to provide hazard pay to their employees for a defined period during the pandemic to be brought forward for the City Council’s consideration at a future City Council meeting. ALTERNATIVES CONSIDERED: The City Council may receive and file the report. FISCAL REVIEW: No fiscal impact to the General Fund. LEGAL REVIEW: The City Attorney’s Office has reviewed and approved this report as to form. CONCLUSION: At the request of Mayor Katrina Foley, this item is brought forward for City Council consideration. Staff is seeking Council direction to request the City Attorney draft an urgency ordinance for consideration at a future City Council meeting requiring local grocers to provide hazard pay to their employees for a defined period during the pandemic. ___________________________ __________________________ ALMA L. REYES CAROL MOLINA Assistant to the City Manager Finance Director ____________________________ __________________________ LORI ANN FARRELL HARRISON KIMBERLY HALL BARLOW City Manager City Attorney