Reopening Timeline
City of Los Angeles
Mayor Eric Garcetti indicated during his daily briefings this week that the City continues to view May 15, 2020, as the target date to begin gradually reopening. He stated that the focus during this process will be on how certain industries and locations could accommodate limited time periods for visitors and appropriate social distancing and protective measures. The City will look at “the need, the risk, and the safety measures in place” for businesses—including some retail and manufacturing companies and recreational spaces—seeking to reopen. We expect additional details in the coming week. However, the City appears to be generally in line with recent announcements by California Governor Gavin Newsom concerning the State’s phased reopening of businesses.
County
The County is now in the process of developing concrete steps and actions to return the region to work. On Tuesday, April 28, 2020, the Board of Supervisors voted to create a plan for reopening, which includes a framework for:
- Reopening the economy through an economic resilience task force.
- Recovery through a permanent 501(c) fund.
- Reinvention among businesses concerning how they function, including using continued telecommuting services.
- Resurgence of the economy through a doubling of the L.A. County Works initiative.
- Resiliency concerning educational efforts for youth.
The County is creating a task force to look at the reopening process, which will include business leaders across various sectors of the local economy as well as all five of the Supervisors. The County’s public-private approach is a positive development and demonstrates a commitment to addressing the unique needs of various businesses and employers.
New Ordinances
City
On Wednesday, April 29, 2020, the Mayor signed the Right of Recall and Worker Retention ordinances into law following the City Council’s passage of the ordinances last week. Both apply to the hospitality, property management and airport industries. The Right of Recall ordinance requires employers to rehire laid-off workers based on seniority and provide such offers in writing (via mail, email or text), and gives recalled employees five days to reply to an offer. The Worker Retention Ordinance requires employers to retain workers when there is a change of ownership of a business; bars owners from discharging employees without cause for the first 90 days after the transfer of a business; and requires owners to provide employees with written performance evaluations. More information about these ordinances is available here.
County
On Tuesday, April 28, 2020, the County also passed a Worker Protection Ordinance, which will apply in the unincorporated areas of the County. The ordinance, which is consistent with the one previously passed by the LA City Council, requires employers with 500 or more employees nationally to provide supplemental paid sick leave to employees upon written request. Full-time employees are required to be provided 80 hours of such supplemental leave, and part-time employees working less than 40 hours per week are required to be provided 40 hours. Permitted reasons for taking such leave are:
- A public health official or healthcare provider requires or recommends the Employee isolate or self-quarantine to prevent the spread of COVID-19.
- The Employee is subject to a federal, State or local quarantine or isolation order related to COVID-19 (e.g., is at least 65 years old or has a health condition such as heart disease, asthma, lung disease, diabetes, kidney disease or a weakened immune system).
- The Employee needs to care for a family member who is subject to a federal, State or local quarantine or isolation order related to COVID-19 or has been advised by a healthcare provider to self-quarantine related to COVID-19.
- The Employee takes time off work because the Employee needs to provide care for a family member whose senior care provider or school or child care provider ceases operations in response to a public health or other public official’s recommendation.
Unlike under the City Ordinance, employers may require documentation for such leave, although an employee may begin taking leave before obtaining the requested documentation. The Ordinance goes into effect immediately and sunsets on December 31, 2020.
County Budget
On April 28, 2020, the County CEO provided budget projections and recommendations for FY 2020-21. She indicated that while the County will be able to close FY 2019-20 without significant cuts, its financial reserves would be reduced from $1.1 billion to approximately $200 million. The County CEO noted that the coming fiscal year would likely see significant impacts from COVID-19. The County is projecting a loss of $2 billion in tax revenue, and the proposed $35.5 billion budget reflects $594 million in spending cuts. The proposed budget is expected to change significantly before it is adopted at the end of June 2020.