Policy Update | May 6

by L.A. Area Chamber

Federal Debrief

The Senate returned from recess this week. Senator Kamala Harris will introduce legislation today -- The Saving our Streets Act --that will allocate 75 percent of $150 billion for micro businesses, including minority and veteran businesses. The senator’s legislation attempts to close the equity gap for struggling micro businesses that do not have access to the Paycheck Protection Program loans administered by traditional banks. The bill includes:

• $250,000 in direct grants to micro businesses or nonprofits through the newly established Micro Business Assistance Fund that can be used for business expenses such as payroll, rent and mortgage and utilities.
• 75 percent of the $125 billion in funding for historically underrepresented businesses.
• Requests for reporting about the ethnicity, race, industry, geographical demographics and gender of grant applicants and recipients.

Staff will continue to share developments as the bill moves through the legislative process. On the House side, they will continue to work from home on the next multi-trillion dollar relief bill. House Speaker Pelosi would prefer voting and meeting virtually to avoid the spread of the coronavirus.

 

Los Angeles County Debrief

The Los Angeles County Board of Supervisors is considering the Right of Recall and County-Wide Worker Retention ordinances on May 12, 2020. The County Office of the CEO has shared the latest ordinances. The application has been narrowed to janitorial, maintenance, security service, hospitality and commercial properties. The application is for all of Los Angeles County.

Right of Recall Ordinance:

• Employers that employ 25 or more in maintenance, security or janitorial services.
• Employer is defined as Commercial Property Employer and Hotel Employer.
• A hotel is defined as 50 keys and $5 million in gross receipts.
• Employer must hire laid off employees by seniority.
• Offer of employment must be held for 5 days.
• There is an exemption for collective bargaining agreements if there is already waiver language.
• Establishes rebuttable presumption if the employee is laid off due to COVID-19.
• This measure is permanent and does NOT have a sunset date.

County-Wide Worker Retention Ordinance:

• Employer must maintain hiring preferential list and hire from that list for 6 months after opening.
• Documentation for employment offers must be kept for 3 years.
• Employer must hire laid off employees based on seniority in that occupational classification after a change of ownership.
• Offer of employment must be held for 10 days.
• There is an exemption for collective bargaining agreements if there is already waiver language.
• This measure is permanent and does NOT have a sunset date.

View the proposed ordinances here.