SR Holguin, PC is a union-side labor and employment law firm with nearly four decades of experience representing private sector unions, public sector unions, and multi-employer trust funds. SR Holguin, PC is committed to providing full-service legal representation to each of our clients.

One way in which SR Holguin, PC ensures our clients and their members stay informed is by keeping you updated on recent developments relating to workers’ rights. Today’s updates come following the December 15, 2020 Long Beach City Council Meeting. There is one item in particular that could impact you.

Workers Who Could be Impacted: Grocery Workers in Long Beach 

Councilmember Mary Zendejas (1st District), Councilmember Roberto Uranga (7th District), and Councilmember Rex Richardson (9th District) sent a Letter dated December 15, 2020 to the Mayor and City Council. 

The Letter provided in part “[t]he global health pandemic has emphasized the importance of many workers in industries now highlighted as essential, including front-line grocery workers. Millions of frontline grocery workers nationwide have had to face new hazards in jobs not previously considered especially dangerous due to the virus…Due to these shifting emergency circumstances, at the beginning of the pandemic, a number of grocery companies initially provided extra COVID-19 related compensation to their workers. This bonus, commonly known as ‘Hero Pay,’ often was implemented as a temporary hourly wage increase or a one-off bonus for essential workers. However, as the impacts of the pandemic subsided in June, many retail companies ended their temporary wage increase, and there has yet to be a meaningful commitment to restoring it. This has occurred even as the pandemic has continued to disproportionately impact low wage workers, leaving some grocery workers as the primary earners in their households…As Long Beach perseveres during this time of uncertainty, and begin heading down the path of economic recovery, it is critical that we support front line grocery workers with ‘Hero Pay.’”

Therefore, the Letter recommended “to request the City Attorney to draft an urgency ordinance for consideration at the next City Council meeting to restore ‘Hero Pay’ hazard pay to front- line grocery workers at a rate of $4 per hour, to sunset 120 days after the approval of the ordinance.”

The matter was heard as revised agenda item 35 and passed unanimously. The City Attorney must now draft the urgency ordinance. It would then be considered by the City Council and, if adopted, presented to the Mayor. Mayor Robert Garcia has expressed his willingness to sign the ordinance if and when it is presented to him.

The item was supported by United Food and Commercial Workers (UFCW), Local 324.

We hope these updates are helpful to you.

Fraternally,

SR Holguin, PC

SR Holguin, PC is a union-side labor and employment law firm with nearly four decades of experience representing private sector unions, public sector unions, and multi-employer trust funds. SR Holguin, PC is committed to providing full-service legal representation to each of our clients.

One way in which SR Holguin, PC ensures our clients and their members stay informed is by keeping you updated on recent developments relating to workers’ rights. Today’s updates come following the release of the December 15, 2020 Los Angeles City Council Meeting agenda. There are two items in particular that could impact you.

1. Workers Who Could be Impacted: City of LA Employment Applicants

On November 10, 2020, a Motion was introduced by Council President Pro Tempore Joe Buscaino (15th District) and Seconded by Councilmember Curren Price, Jr. (9th District). The Motion provided in part “Los Angeles has lost more than 500,000 jobs due to the economic fallout of COVID-19. The data indicates that the newly unemployed are disproportionately women and people of color, demographics that are already at a disadvantage in the workforce. These disparities often begin with widely-used hiring systems. More than 60% of employers use pre-hire tests or assessments for sorting applicants…Widespread tools and tactics like employee referral programs and elite campus recruiting prioritize the most privileged and connected job candidates, systematically leaving many qualified candidates at the door… Employers are increasingly turning to technology to help screen large volumes of candidates remotely…Without adequate safeguards, these technologies could mimic the existing bias found in traditional pre-hire assessments and human decision-making, thereby protracting long-standing discrimination in hiring practices…vendors should be required to adhere to industry standards and evaluate assessment tools for potential bias, conduct on-going evaluation when in use, and share the results with users regularly Applicants should also be notified when they are being assessed by any such tool. It is vital that the City of Los Angeles ensure transparency and fairness in hiring and rehiring.”

Therefore, the Motion called for “the Chief Legislative Analyst, with the assistance of the Bureau of Contract Administration, City Attorney, and any other departments, as needed, be [directed] to report with recommendations to establish standards for third party automated employment selection tools to promote equitable hiring across race, ethnicity, and gender.”

On November 10, 2020, the Motion was referred to the City Council’s Public Works and Gang Reduction Committee. On November 16, 2020, Council President Nury Martinez (6th District) changed the referral to the City Council’s Economic Development Committee. On December 8, 2020, the Economic Development Committee approved the Motion.

Now, agenda item 8 of the December 15, 2020 Los Angeles City Council Meeting agenda calls for the calls for the full City Council’s consideration of the Motion and the Committee’s recommendation for its approval. 

2. Workers Who Could be Impacted: California Teachers

On December 9, 2020, a Resolution was introduced by Councilmember Mike Bonin (11th District) and Seconded by Council President Nury Martinez (6th District).

The Resolution provided in part “despite the unprecedented nature of the public health crisis, school districts and educators across the state stepped up and adapted to the significant challenges caused by school closures by shifting towards new online distance learning formats…the disproportionate health and economic impacts of COVID-19 on Black, Latino, Asian and Pacific Islander, and Native American families, including higher rates of job loss and COVID-19 infections compounded by limited access to technology and reliable internet access, have only exacerbated the educational challenges that students of color have had to endure during this crisis…for many working families, the continued closure of schools has forced many parents and caregivers to make an impossible choice between leaving their jobs and foregoing their family’s income, or leaving their children home alone without the care or supervision of an adult…there is general agreement among parents, educators, school administrators, and public health professionals that schools should be able to reopen as long as the rates of COVID-19 transmission remain low in the general population, and there is adequate school testing, screening, monitoring, sanitation, personal protective equipment, and emergency response protocols in place to ensure that educators and students can safely return to an in-person school setting…

Providing vaccines to all school site personnel, including teachers, paraprofessionals, janitors, and other support staff, will be key to reopening schools safety and efficiently…because initial vaccine supply will be limited, California state health officials are developing a phased distribution plan…that will establish the priority populations for vaccination…the state has indicated that health care workers and first responders who are likely to treat or be exposed to COVID-19 patients are expected to be the first phase of vaccine recipients, and these workers are being divided into subgroups in case of a shortage in the first rounds…the definition of an essential worker in the distribution guidance is still being developed by state health officials…public school educators are arguably among the most essential workers…while educators are generally considered essential workers, it is still unclear where educators will fall in the state’s priority ranking, which will be decided in the coming weeks.”

Therefore, the Resolution calls for the “Los Angeles City Council [to] urg[e] Governor Newsom, the California Department of Public Health, and all other state health officials to prioritize the recovery of our public education system by providing teachers and school support staff with vaccines immediately after health care professionals so that we can safely reopen schools and get students back into the classroom as soon as possible; and [further]…that the Los Angeles City Council urg[e] Governor Newsom, the California Department of Public Health, and all other state health officials to ensure that the costs of COVID-19 vaccines for all educators and school support staff be subsidized by our state and federal government to ensure equitable and timely access to these vaccines.”

The Resolution was referred to the City Council’s Rules, Election, and Intergovernmental Relations Committee who waived consideration of the matter.

Now, agenda item 24 of the December 15, 2020 Los Angeles City Council Meeting agenda calls for the calls for the full City Council’s consideration of the Resolution.

We hope these updates are helpful to you.

Fraternally,

SR Holguin, PC

SR Holguin, PC is a union-side labor and employment law firm with nearly four decades of experience representing private sector unions, public sector unions, and multi-employer trust funds. SR Holguin, PC is committed to providing full-service legal representation to each of our clients.

One way in which SR Holguin, PC ensures our clients and their members stay informed is by keeping you updated on recent developments relating to workers’ rights. Today’s updates come following the release of the December 8, 2020 Los Angeles County Board of Supervisors meeting agenda and supplemental agenda. There are three items in particular that could impact you.

1. Workers Who Could be Impacted: Los Angeles County Development Authority Employees

Agenda Item 3-D: “California Public Employees Retirement System Employers’ Pension Prefunding Trust Agreement”

The Acting Executive Director of the Los Angeles County Development Authority (LACDA) sent a Letter to the Board dated December 8, 2020 entitled “Approve Agreement to Establish IRS Section 115 Trust with the California Public Employees Retirement System and Approve the Transfer of Funds to the Trust.”

The Letter provided in part “[t]he LACDA is taking steps to better manage the short-term costs and long-term liabilities associated with pensions. The purpose of this action is to enter into an agreement with [California Public Employees Retirement System (CalPERS)] to fund the IRS Section 115 Trust through the [CalPERS Employers’ Pension Prefunding Trust (CEPPT)], an irrevocable trust administered by CalPERS. Through the agreement between CalPERS and the LACDA, the LACDA will transfer LACDA funds to the Trust to hold, invest, and distribute assets to pay future pension costs for eligible LACDA employees. Currently, the LACDA funds its [Unfunded Accrued Liability (UAL)] by setting aside funds designated to pay future pension costs. These funds are subject to the LACDA’s investment policy, which is subject to the California Government Code, generally yielding lower investment earnings, as compared to the investment choices available through other options. There is the alternative of sending the funds directly to CalPERS, but doing so relinquishes the LACDA’s investment control and oversight to CalPERS. Under Section 115 of the Internal Revenue Code, a public agency or municipality can create a separate trust to pre-fund its CalPERS UAL. The Trust is a vehicle for segregating agency funds from general assets for the purpose of funding pension liabilities. The Trust maintains the LACDA’s control and desired level of risk over the assets in trust, as Federal and State law allows the agency to invest in a greater array of security options to maximize returns in long-term investments.”

Therefore, the “letter requests that your Board authorize the Los Angeles County Development Authority (LACDA) to enter into an agreement with the California Public Employees Retirement System (CalPERS) to participate in the CalPERS Employers’ Pension Prefunding Trust (CEPPT) program and authorize funding of $3.8 million, from funds previously set aside to pre-fund the unfunded accrued liability.”

Now, agenda item 3-D of the Los Angeles County Board of Supervisors meeting recommends that the Board ‘approve and instruct the Chair to sign an Agreement and Election to Prefund Employer Contributions to a Defined Benefit Pension Plan with the California Public Employees Retirement System (CalPERS) for the Los Angeles County Development Authority to establish an IRS Section 115 Trust, an irrevocable pension trust, and participate in the CalPERS California Employers’ Pension Prefunding Trust fund program; approve and instruct the Chair to sign the Delegation of Authority to Request Disbursements to transfer funds to prefund the IRS Section 115 Trust; authorize the Acting Executive Director of the Los Angeles County Development Authority to execute any related documents as may be necessary to fund the trust; authorize the initial transfer of $3,800,000 to the trust from funds previously set aside to prefund the Unfunded Accrued Liability; and authorize the Acting Executive Director to make any future contributions at his discretion, based on funding availability, through the annual budget process.”

2. Workers Who Could be Impacted: Restaurant Workers Throughout Los Angeles County

Agenda Item 3: “Support for the Restaurant Workforce and Vulnerable Communities”

A Motion will be introduced by Incoming Chair Hilda Solis (1st District) and Supervisor Sheila Kuehl (3rd District). The Motion provides in part “recently announced restrictions on dining establishments are of great concern to Los Angeles County given that restaurants are the backbone of our economy. Although COVID-19 cases are increasing and safeguards are necessary, it is incumbent on government to provide support to those industries and their employees severely impacted.” World’s Central Kitchen’s Restaurants for the People program “aims to keep the devastated restaurant industry afloat by getting restaurant and food workers re-hired and able to provide for their families, and by reinvigorating our agricultural communities hit hard by shuttering restaurants. Besides getting critically needed meals to those experiencing food insecurity, the program resonates widely throughout the economy, including continued employment for restaurant industry workers, support for the farms and producers that serve the restaurants, the shipping and distribution companies that transport the food, as well as bolstering a fast-depleting tax base to help keep the County’s economy as strong as possible during the crisis… Los Angeles County has the opportunity to not only reinvigorate the County’s restaurant and agricultural industries but also to get thousands of its workers rehired and once again providing for their families –thereby substantially reducing local government COVID-19 mitigation costs, and helping to ensure as quick an economic recovery as possible.”

Therefore, the Motion calls for “the Board of Supervisors [to] direct the Chief Executive Office to explore the availability up to $10 million of any unspent or future CARES Act funding or any other available funds to enter into a sole source contract with World Central Kitchen that would fund restaurants across Los Angeles County to provide meals to vulnerable communities, including those who are under health orders to self-quarantine and who lack the financial resources and ability to prepare their own meals.”

3. Workers Who Could be Impacted: “Essential Workers” Employed by LA County

Supplemental Agenda Item 62-C. “Preserving COVID-19 Testing Capacity for Los Angeles County Residents and Providing COVID-19 Testing for County Essential Workers”

A Motion will be introduced by Incoming Chair Hilda Solis (1st District). The Motion provides in part “[o]n July 17, 2020, the California Department of Managed Health Care (DMHC) issued an emergency regulation requiring that health plans provide coverage for COVID-19 testing for both symptomatic and asymptomatic ‘essential workers.’ Essential workers include County employees who continue to be on the frontlines inspecting workplace outbreaks, seeing patients in our clinics, serving residents experiencing homelessness, providing meals at food distributions, and more. Currently, County essential workers are able to access testing through their County-sponsored health plans, but despite increasing their capacity, the health plans have struggled to consistently provide these services within the required 48-hour DMHC timeframe. This has resulted in County-employed essential workers accessing County testing resources intended to serve residents…

Employers, including the County of Los Angeles, have a responsibility to ensure access to COVID-19 testing for their employees who are essential workers. The overwhelming majority of the County’s workforce are essential workers…all of whom need access to testing to protect themselves and the public they serve. Yet, it is important that the County fulfill this occupational obligation as an employer in a separate manner – one that does not detract from its more general role in servicing the public health needs of all County residents, particularly the most vulnerable. With the current record surge in COVID-19 cases, there is an urgent need for the County as an employer of essential workers to respond. Efforts to relieve our community testing sites while safeguarding the health of essential workers are critical. There is an opportunity to enter into an agreement to retain experienced contracted staff to operate COVID-19 testing centers specifically for County-employed essential workers. This comes about through a partnership with the four County-sponsored health plans. Working with the plans, the County facilitated “in-network” status for these testing centers and negotiated one all-inclusive cost to be paid by all County-sponsored plans. The agreement will be at no cost to the County – and, instead, will afford an opportunity for the County to save funding by reducing use of County-sponsored COVID-19 community testing sites by County-employed essential workers. Such actions will preserve funding for testing capacity at the community testing sites for residents, while ensuring that County-employed essential workers have access to readily accessible and expeditious testing necessary to continue to safely provide critical County services.”

Therefore, the Motion calls for the Board of Supervisors to: 

“1. Instruct Director of Personnel, to establish a no-cost contract with Fulgent Diagnostics, LLC (Fulgent) to operate COVID-19 testing centers designated by the County for self-administered test centers. The contract must provide for: A. Establishing a County-specific website to allow County employees to certify as essential workers, make an appointment at one of the testing centers, and provide insurance information from a County-sponsored health plan for billing purposes, as well as an administrative portal for County use. B. Operating testing centers at County designated facilities. C. Staffing each center with at least two (2) qualified staff to support testing, including distribution of test kits, answering essential worker questions, accepting specimens and conveying them to the contractor’s labs for testing each evening. D. Filing claims for reimbursement, not to exceed the negotiated price of $100 per test for all testing, diagnostic and follow-up services, with each essential worker’s County-sponsored health plan within 30 days of the test result. E. A dashboard for the County that will show the percentage of County- employed essential workers that test positive, for County departments to remove and isolate such essential workers from County service until safe to return to work.

2. Authorize Director of Personnel, or designee, to amend the Fulgent contract to (i)adapt to developments in COVID-19 testing and prevention during the COVID-19 pandemic, for operational efficiencies and clarifications, and update the personnel administering the agreement, and (ii) make other changes pursuant to the authority granted in the contract to the Board of Supervisors, including exercising term extension options and adding or updating County required provisions, with all such modifications resulting in no changes to the current negotiated insurance reimbursement under the agreement.

3. Delegate authority to the Director of Personnel to amend, if necessary, additional substantially similar contracts with other qualified vendors for operation of self- administered test centers, with 10-day prior notification to the Board.

4. Instruct Director of Personnel, in collaboration with all departments, to develop and execute a strategic communication plan to inform County-employed essential workers of their ability to receive a COVID-19 test, to be paid for by their health plan, even if they are asymptomatic or have not had a documented contact with a confirmed case.

5. Instruct Director of Personnel, in collaboration with the Director of the Department of Health Services and the Director of Public Health, to create a toolkit for employers pursuing testing access for their employees. 6. Instruct Director of Personnel to report back to the Board on all these matters in 15 days.”

We hope these updates are helpful to you.

Fraternally,

SR Holguin, PC