Grocery Workers Under the Labor Code

Labor Code Division 2, Part 9.5 provides for grocery workers. Labor Code Section 2500 provides that supermarkets and other grocery retailers are the primary points of distribution for food and other daily necessities for the residents of California and are therefore essential to the vitality of every California community. In addition, a transitional retention period for grocery retail workers upon change of ownership, control, or operation of grocery stores ensures stability throughout the state for these vital workers, which, in turn, results in preservation of health and safety standards.

Section 2502 provides definitions for the following terms: “change in control,” “eligible grocery worker,” “employment commencement date,” “grocery establishment,” “incumbent grocery employer,” “person,” “successor grocery employer,” and “transfer document.”

Section 2504 requires the incumbent grocery employer to provide, within 15 days after the execution of the transfer document, to the successor grocery employer the name, address, date of hire, and employment occupation classification of each eligible grocery worker. The successor grocery employer is required to maintain a preferential hiring list of eligible grocery workers identified by the incumbent grocery employer. Thereafter, the successor grocery employer is required to hire from that list for a period beginning upon the execution of the transfer document and continuing for 90 days after the grocery establishment is fully operational and open to the public under the successor grocery employer.

Section 2506 requires a successor grocery employer to retain each eligible grocery worker hired pursuant to this part for at least 90 days after the eligible grocery worker’s employment commencement date. During this 90-day transition employment period, eligible grocery workers must be employed under the terms and conditions established by the successor grocery employer and pursuant to the terms of a relevant collective bargaining agreement, if any.

In addition, if the successor grocery employer determines that it requires fewer eligible grocery workers than were required by the incumbent grocery employer, the successor grocery employer is required to retain eligible grocery workers by seniority within each job classification to the extent that comparable job classifications exist or pursuant to the terms of a relevant collective bargaining agreement, if any. Moreover, during the 90-day transition employment period, the successor grocery employer cannot discharge without cause an eligible grocery worker retained pursuant to this part.

Finally, at the end of the 90-day transition employment period, the successor grocery employer is required to make a written performance evaluation for each eligible grocery worker retained pursuant to this part. Section 2508 requires the incumbent grocery employer to post public notice of the change in control at the location of the affected grocery establishment within five business days following the execution of the transfer document.

Section 2512 provides that the parties subject to this part may, by collective bargaining agreement, provide that the agreement supersedes the requirements of this part. Section 2516 specifies that this part does not apply to grocery establishments that will be located in geographic areas designated by the United States Department of Agriculture as a food desert.

Section 2518 prohibits this area of law from being construed to limit an eligible grocery worker’s right to bring legal action for wrongful termination. Section 2520 specifies that this area of law does not preempt any city, county, or city and county ordinances that provide equal or greater protection to eligible grocery workers. Section 2522 provides that these provisions are severable.