L.A. Area Chamber: Update 4/29/20 - Policy Updates for LA County & City

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March 23, 2020

Update 4/29/20


Los Angeles County Board of Supervisors
Yesterday, the County Board of Supervisors approved their COVID-19 Supplemental Paid Sick Leave Ordinance. The ordinance applies to employers over 500 in the nation and in unincorporated parts of Los Angeles County. The CEO office shared that there are 38 businesses that will be impacted by the Ordinance. Some of the provisions include:
  • Employers to provide full-time employees 80 hours of supplemental sick leave for COVID-19 related reasons.
  • Requires a doctor's note to request leave.
  • Employer offset - If an employer provided additional paid leave, the obligation to provide leave may be reduced by every hour the employer allowed an employee to take leave.
  • Exempts emergency first responders and health care providers.
  • Exemption for collective bargaining agreements if there is a waiver in the agreement.
  • Urgency ordinance.
  • Sunsets Dec. 31, 2020.
The Chamber is working with our business partners to continue to advocate on the Right of Recall and Countywide Worker Retention ordinances which are expected to be considered by the Board of Supervisors on May 12, 2020.
Los Angeles City Council Update
The Los Angeles City Council adopted two ordinances today related to Right of Recall and City Wide Worker Retention. The two ordinances were previously amended to limit the industries to airport workers, hospitality, and commercial property owners that employ 25 or more janitorial, maintenance or security service workers.
Right of Recall Ordinance 
  • Would establish rebuttable presumption if the employee is laid off to COVID-19.
  • If laid off, must offer employment to previous employees based on seniority and wait 5 days to hear back from each employee.
  • This measure does NOT have a sunset date.
City Wide Worker Retention Ordinance 
  • Require employees laid off due to COVID-19 to be rehired by seniority after a change of ownership.
  • Requires the rehiring and training of employees of the incumbent owner following change of ownership.
  • This measure is permanent and does NOT have a sunset date.
These items have been adopted unanimously and will be sent to Mayor Eric Garcetti for his signature. The mayor has 10 days to sign or veto the ordinances. Our advocacy efforts are now focused on the mayor.
City of Los Angeles Update
Mayor Garcetti recently released his annual budget that paints a picture of a new Los Angeles in his budget proposal for the 2020-21 fiscal year where he declares "a state of fiscal emergency as part of the 2020-21 budget." In his budget summary, he highlights that he will continue with more than $420 million in funding for homelessness, which would include funding for LAHSA, Prop HH funds, HEAP, HHAP and other programs. He also highlights the importance of public safety and an Emergency Medical Services Unit which is a newly formed Public Health Unit. Mayor Garcetti also provided funding for the fifth year of the high voltage conversion program with 100 percent of street lights converted to energy-efficient, low voltage LED.
Overall, the City's budget is projected to lose more than $178 million this year, compared to last year.
The Mayor identified efficiencies in numerous departments with the largest being the following:
  • Police: $25 million
  • Bureau of Street Services: $16 million
  • General Services: $8 million
  • City Attorney : $7 million
  • Fire: $5.6 million
  • Transportation: $5.2 million
  • Personnel: $4.3 million
  • Information Technology Agency: $4.3 million
Most of the reduction in services will be in the following departments:
  • Police: $22.2 million
  • Transportation: $14.3 million
  • City Attorney: $14.3 million
  • General Services: $11.3 million
  • Bureau of Engineering: $9.6 million
  • Bureau of Street Lighting: $9.4 million
  • Housing and Community Investment: $7.2 million
  • Personnel: $4.9 million
The Mayor has announced massive furloughs across the board for all civilian employees in the City. His budget also reflects a 20 percent reduction for the Bureau of Street Services, mostly obtained through attrition costs. The City’s budget relies heavily on business tax, sales tax, transient occupancy tax, license, permits, fees and fines paid by businesses and construction. In the current budget,
  • Business tax will generate $687 million.
  • Sales tax will generate $557 million.
  • TOT will generate $245 million.
  • Licenses, permits, fees and fines will generate $1.3 billion.
As the City moves through its budget review process, it is critical for the business community to advocate for funding for departments that are critical to continue construction projects in the City of Los Angeles such as the Bureau of Public Works and Planning. The business community's success is critical for the City's budgetary recovery.

For additional information, please contact Patricia Torres Bruno, Chief Policy Officer, Los Angeles Area Chamber of Commerce
Update 3/23/20 
Please continue sending your alerts, information and updates to the Chamber and we will amplify and accelerate all the communications, support and resources available to our region’s small business community. 
As the region adjusts to tackle coronavirus (COVID-19), the Los Angeles Area Chamber of Commerce is committed to providing the resources and information necessary to address the needs of our business community during this unprecedented time. In uncertain times like these, the Chamber is working to minimize the impacts to health, communities and our economy. Although, the coronavirus (COVID-19) has disrupted daily life for everyone across our region, we must remember that we are in this together. This is not the first challenging situation the Los Angeles region has faced, but when Los Angeles comes together there is nothing we cannot face.
Thank you all for your leadership and partnership.
Andrea Nunn | Senior Vice President

COVID-19 LOS ANGELES COMMUNITY MASS RESOURCE LIST: https://docs.google.com/document/u/0/d/1S-WJaMa4q3yNrEBfSFKEdSQArcNc_MTI2LiUA63Ycyg/mobilebasic?fbclid=IwAR1RlqwsTb1zLLg8R-nI6IPLp4AF0rcFWApR_2RNkJEV7cEvJBzcIB0nIsE&usp=gmail

Los Angeles Area Chamber COVID-19 Response & Resource Guide: https://lachamber.com/resources/covid-19-coronavirus-resource-guide/

Direct Links and Contacts to Apply for Funding:

SBA Disaster Loan
CalCap Small Business Lenders – Contact Names & Phone Numbers
State Employment Development Department (EDD)
Disability Insurance & Paid Family Leave
State Loan Guarantee – Pacific Coast Regional
Small Business Development Center – Bixel Exchange Advisor Relief Team
Request for 1:1 Advising
City of LA Small Business Emergency Microloan
Andrea Nunn, Senior Vice President
Anunn@lachamber.com, 213.580.7546