Facts

In 2005, the city of Los Angeles (City) passed an ordinance effective February 2006, requiring any grocery establishment over 15,000 square feet in the City which is sold or leased to retain all employees for no fewer than 90 days. Thereafter, the successor shall consider offering each employee continued employment, and must retain a record of written performance evaluations. Each employee is given a private right of action including the right to recover front and back pay. These rights otherwise do not exist. One of the City's stated purposes in enacting this ordinance was to protect the health, safety and welfare of the citizens of Los Angeles. The CGA challenged the Ordinance on behalf of its members on the basis that it was unconstitutional under the California and Federal Constitutions.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended the ordinance was unconstitutional on four bases: under the equal protection clauses of the California and U.S. Constitutions; federal preemption of the Ordinance by the NLRA; State preemption of the Ordinance by the California Health and Safety Code; State preemption of the Ordinance by the California Labor Code.

DEFENDANT'S CONTENTIONS:
Defendant City and intervenor Los Angeles Alliance for a New Economy denied all of the plaintiff's contentions and argued that the ordinance met all of the constitutional challenges. The intervenor also argued that Ordinance had multiple purposes and that the protection of health and safety was only one of the purposes of the ordinance, and that the ordinance was also a worker-protection ordinance. The City argued that the purpose of the ordinance should be measured by its operating effect, which is to protect jobs.

Result

The court ruled that the ordinance was void as violating the California and U.S. Constitutional equal protection provision and was preempted by the California Health and Safety Code. The court denied CGA's claims that the NCRA or the California Labor Code preempted the ordinance. Based on CGA's two successful claims, a permanent injunction as to enforcement of the ordinance was issued.