Grocery stores in Irvine smaller than 15,000 square feet — think Trader Joe's-sized shops — could soon face steep fines if they lay off workers during an ownership change. The Irvine City Council voted 5-2 on Tuesday to direct city staff to draft an ordinance requiring new grocery owners to retain existing employees for at least 90 days after a sale, extending protections that state law currently withholds from smaller-footprint stores.
Under the proposal, grocers who violate the retention rules would face a $1,000 fine per affected employee, plus an additional $250 daily penalty owed to each worker who is discharged prematurely without cause, according to Voice of OC. As LAist reports, the ordinance would apply specifically to grocery stores employing more than 300 employees nationwide, closing a gap left by California's existing statewide protections. Businesses that fail to comply with the eventual ordinance may face fines, though the precise enforcement mechanics will be worked out as staff prepares formal language.
Councilmember Kathleen Treseder introduced the measure, which still needs two separate council approval votes before it can take effect 30 days after final adoption. City staff are now tasked with drafting official ordinance language for a first reading at the next council meeting, scheduled for September 22 at 4 p.m. at Irvine City Hall, with remote viewing and public comment available through the ICTV page.
Why State Law Leaves Smaller Stores Uncovered
California's Protect Grocery Workers Jobs Act, known as AB 647, was signed into law in October 2023 and took effect January 1, 2024, expanding 90-day retention rules to grocery stores larger than 15,000 square feet and adding distribution centers, according to a summary from Jackson Lewis. But an Irvine city staff report found that modern grocers increasingly build smaller-footprint stores with reduced retail space and expanded dining areas, causing many new locations to fall below that 15,000-square-foot threshold and outside the reach of state protections, Voice of OC reported.
That regulatory gap is exactly what the Irvine ordinance aims to close. Irvine joins a list of Southern California cities — including Los Angeles, Santa Monica, Long Beach, and Santa Ana — that have previously enacted local labor protections and hazard pay policies for chain grocery workers when state standards left gaps, per a Voice of OC social media post.
Mother's Market Workers Rally as Union Drive Heats Up
The ordinance proposal lands amid an active unionization drive led by UFCW Local 324 across Mother's Market & Kitchen locations in Orange County, following the natural food chain's acquisition by private equity firm Mill Road Capital, according to New Santa Ana. Mother's Market employees and UFCW organizers staged a mass turnout at Tuesday's city council meeting to push for the measure.
UFCW Local 324 President Jose Perez testified at the meeting that frontline grocery workers frequently become “collateral damage” during corporate buyouts and store sales, arguing the local ordinance closes loopholes left by state law, Voice of OC reported. Councilmember Melinda Liu said Irvine has a responsibility to protect its residents, backing the push for the new rules.
Not everyone on the dais agreed. Councilmember Mike Carroll said the proposed ordinance seemed like local overreach, and he joined Councilmember James Mai in opposing the direction to draft it, according to LAist. California grocer industry representatives have also opposed local grocery retention ordinances, arguing that varying city-by-city regulations create a confusing patchwork of compliance rules and increase operational complexity for multi-location grocers, per Voice of OC.
Legal Footing and Local Stakes
Municipalities have clear legal standing to enact these kinds of rules. In July 2011, the California Supreme Court unanimously upheld Los Angeles's 2005 Grocery Worker Retention Ordinance, ruling that cities hold authority under local police powers to require new grocery owners to retain existing staff for 90 days, according to the California Supreme Court's own opinion in that case.
The debate also unfolds against a backdrop of regional food insecurity. A 2024 Feeding America study cited by the Orange County Hunger Alliance found that more than 387,000 residents — about 12% of Orange County's population — experienced food insecurity that year, Voice of OC reported, with food banks reporting rising hunger as government benefit programs scaled back. Whether the ordinance clears its September 22 first reading, and how smaller grocers plan to adapt to the per-employee daily fine structure, remains to be seen.
