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8.A. - Page 3 of 73
<br />for current hazard pay that employers are voluntarily paying at the time that the ordinance goes into
<br />effect. No retroactive pay is proposed as part of the urgency or regular ordinance.
<br />Covered Employer (including Potentially Impacted Businesses)
<br />Employers that would be covered include any grocery store or drugstore operation that employs or
<br />exercises control over the wages, hours, or working conditions of any employee that employs 750 or more
<br />employees nationwide regardless of where those employees are located.
<br />The ordinance applies to grocery stores and drugstores that qualify as a covered employer. Franchisees
<br />associated with a Franchisor or a network of Franchises with Franchisees that employs 750 or more
<br />employees in the aggregate are included.
<br />The terms "grocery store" and "drugstore" are defined in the ordinance as follows:
<br />• "Drugstore" means a store that is located within the geographic limits of the City, and that devotes
<br />seventy percent (70%) or more of its business to retailing a general range of drugs,
<br />pharmaceuticals, cosmetics and related products, including food products, which may be fresh or
<br />packaged. There is a rebuttable presumption that if a store receives seventy percent (70%) or
<br />more revenue from retailing a general range of drugs, pharmaceuticals, cosmetics and related
<br />products, including food products, then it qualifies as a drugstore.
<br />• "Grocery Store" means a retail store that is located within the geographic limits of the City, and
<br />that sells primarily household foodstuffs for offsite consumption, including the sale of fresh
<br />produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages,
<br />baked foods, or prepared foods. Other household supplies or other products shall be secondary
<br />to the primary purpose of food sales. For the purposes of this ordinance, "Grocery Store" also
<br />means a retail store located within the geographic limits of the City that devotes 10% or more of
<br />its interior space to the sale of household foodstuffs for offsite consumption, including the sale of
<br />fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods,
<br />beverages, baked foods, or prepared foods.
<br />In Redwood City limits, this appears to include about 10 stores with 13 physical locations in the City:
<br />Costco, CVS (three locations), Grocery Outlet, Lucky's, Nob Hill, Rite Aid, Safeway (two locations), Smart
<br />& Final, Target, and Whole Foods; and may also include two stores with five physical locations in the City:
<br />7/11 (four locations) and Dollar Tree.
<br />Grocery delivery apps, subscription -based grocery, community -supported agriculture (CSA), and farmer's
<br />markets are excluded.
<br />Research has shown that for regional retailers with multiple locations in the Bay Area, the highest
<br />mandated hazard pay becomes the new minimum for all employees, as it is difficult for stores to have
<br />different hourly wages in the same region. In addition, owners typically do not want to create a situation
<br />between stores where one set of employees have higher wages than another set of employees doing the
<br />same job.
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<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.ore
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