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The Los Angeles City Council, as expected, has overwhelmingly approved legislation requiring supermarkets that acquire stores to retain the old stores’ employees during the transition. The law says that any employee who worked for the original company for at least six months has to be kept on for at least 90 days unless there is a legal cause to terminate them.

The Los Angeles Times reports this morning that “the acquiring company would be required to conduct a written performance evaluation of employees. If a worker's evaluation is satisfactory, the new owner would have to consider offering a job to the worker before hiring from outside. The ordinance also would require that workforce cutbacks be determined according to seniority.”

Mayor Antonio Villaraigosa has promised to sign the ordinance into law.

The California Grocers Association is considering a lawsuit to challenge the legality of the ordinance.
KC's View:
Hey, we believe in protecting the rights of employees, but this is absurd legislation that puts onerous and unreasonable demands on retailers.

Why would anyone want to buy a supermarket chain in LA with this legislation in place? If it were a sub-par company, there’d be no ability to immediately get rid of the deadwood employees who might be creating problems.

Good employees will almost always keep their jobs – because they are good employees. This law only protects the slackers and laggards.