News / Press Release

Los Angeles Area Chamber of Commerce Urges Opposition to Measure Proposed by Los Angeles City Council Designed to Severely Hamper Businesses

Measure designed to hurt businesses tied to the $2 trillion stimulus package


LOS ANGELES, CA– March 26, 2020 - The Los Angeles Area Chamber of Commerce is urging the City Council to reject a proposed measure that may hamper the majority of businesses in the City that are fighting to survive during and in the aftermath of the current health crisis. The proposed “Worker Retention” and “Right of Recall” ordinances could have detrimental impacts to the business community and their employees, in which workers will be discharged in order of seniority and have a right of recall in order of seniority. 

The Los Angeles City Council will vote on a large range of motions related to the COVID-19 pandemic, during their Emergency City Council hearing to be held on Friday, March 27, 2020. This proposed ordinance is not only for the duration of the state of emergency, but would sunset March 2022, which could cause severe damage to those businesses, already struggling to survive make sound business decisions.

Components include:

  • Businesses laying off their employees based on seniority, not based on need, merit, efficiency or financial burdens
  • Only be able to terminate employees based on just cause, illegal to terminate an employee based on financial impacts due to this crisis
  • Can rehire employees also based on seniority

“In these times of uncertainty, when businesses have been forced to shut down and make increasingly difficult decisions, business owners require the right to make the decisions necessary to survive the current health crisis,” said Los Angeles Area Chamber of Commerce President & CEO Maria S. Salinas.  “Everyday businesses are fighting to endure and generate revenue that allows them to stay open and not lay off their employees. This proposed measure does not provide businesses flexibility and it infringes on their ability to operate to keep their doors open. This policy will only lead to more business closures further reducing jobs.”

“While we commend the Los Angeles City Council and its continued leadership in this time of uncertainty and understand the need to protect employees, we want to make clear that this is the time to empower small and medium sized businesses to ensure they can keep their doors open, and not enact new regulations making it even more difficult to continue operations,” Salinas continued.

The Chamber understands the need and is dedicated to protecting employees and employers. We pledge to be a partner, continue collaborative conversations, and work together to ensure the right solutions are created to protect as many workers as possible.

Businesses, from small to large, are trying to navigate the new normal, which is why the Chamber is urging the City Council to reconsider this measure, in order to keep workers working.

 

About the Los Angeles Area Chamber of Commerce

The Los Angeles Chamber is the region’s premier business organization representing the interests of a broad spectrum of organizations across the private, non-profit, academic and public sectors while advocating across local, state, federal and global levels. The Chamber’s mission is to design and advance opportunities and solutions for a thriving regional economy that is inclusive and globally competitive. Founded in 1888, the Chamber is the oldest and largest business association in Los Angeles County. It’s 1,500+ member companies work together with the Chamber to advance and support efforts that eliminate barriers and maximize opportunities for economic prosperity, creating a thriving region for all. For more information, visit www.lachamber.com