AB 647: Grocery Workers

Assembly Bill 647 by Assemblyman Chris Holden (D-Pasadena) was introduced to impose requirements on successor entities and grocery workers. AB 647 would amend Labor Code Sections 2504 and 2506, and would add Labor Code Section 2516.1.

Section 1 of the bill would amend Labor Code Section 2504 to increase from 15 to 25 days for an incumbent grocery employer to provide the successor grocery employer contact information for each eligible grocery workers.

Section 2 of the bill would amend Labor Code Section 2506 to increase from 90 to 100 days for a successor grocery employer to retain each eligible grocery worker after the eligible grocery workers’ employment commencement date. It would also increase from 90 to 100 days that the successor grocery employer is prohibited from discharging without cause an eligible grocery worker retained. And, it would increase from 90 to 100 days that the successor grocery employer must make a written performance evaluation for each eligible grocery worker retained.

Section 3 of the bill would add Labor Code Section 2516.1, which would first provide that, in the case of a change of control from a merger, a successor grocery employer cannot cause a grocery establishment that is located in a geographic area designated by United States Department of Agriculture as a food desert to cease being fully operational and open to the public until the establishment provides a written notice to the city council, city attorney, board of supervisors, county counsel, State Department of Public Health, and Attorney General 180 days before the establishment ceases to be fully operational and open to the public.

In addition, the notice would have to include (1) a written analysis and explanation of how residents living in the geographic area designated as a food desert will be able, at comparable cost to purchase food after the establishment ceases being fully operational and open to the public, and (2) a profit and loss statement for the establishment consistent with generally accepted accounting principles for the two years prior to the merger attested to by a responsible officer of the successor employer.