The Santa Monica City Council will consider Tuesday an ordinance requiring hotels on city-owned property and hospitality businesses on the Santa Monica Pier to recall laid-off workers and retain employees during ownership changes.
The proposed ordinance, scheduled for first reading at the Jan. 27 meeting, comes as the city prepares for major international events while facing continued financial uncertainty and potential economic pressures that could threaten hospitality workers' job security.
"Changes in ownership, control, or operation of hospitality businesses on the Pier can trigger mass layoffs and displace employees who are skilled, knowledgeable, and experienced in providing a safe, clean and enjoyable experience for the millions of visitors who come to the Pier each year," according to a staff report from Interim City Attorney Heidi Von Tongeln.
The ordinance would amend the city's existing worker recall code and create new retention requirements specifically for Pier hospitality businesses with five or more employees.
Under the recall provisions, hotels on city-owned property and Pier hospitality businesses would be required to offer available positions to workers who were laid off for economic reasons after Sept. 9, 2025. To qualify, workers must have performed at least two hours of work within city boundaries in a particular week, been employed for six months or more, and had a separation due to lack of business, reduction in force or other non-disciplinary economic reason.
Employers would be required to make offers in writing and give workers at least 10 days to accept or decline.
The new retention chapter would require Pier hospitality businesses to keep workers for 90 days following a change in business control. The ordinance mandates written employment offers and performance evaluations after the 90-day retention period.
The City Council directed staff in July 2025 to develop right to recall and labor peace ordinances at the request of Mayor Torosis, Mayor Pro Tem Zwick and Councilmember Raskin. The city attorney's office prioritized the recall and retention measures after threats of litigation emerged over the labor peace proposal. .
The California Restaurant Association challenged the potential mandate, which would have applied to new or renewed leases on city property including the Santa Monica Pier. In an August letter, they argued the ordinance violates federal labor law and the Constitution, claiming it interferes with workers' rights to choose unionization without external pressure.
Labor peace agreements typically require employers to allow union organizing while unions agree not to strike. Supporters argue they prevent business disruptions, but critics warn of economic damage.
The proposed ordinance exempts nonprofit businesses and excludes managerial, supervisory or confidential employees. It allows supersession by bona fide collective bargaining agreements and prohibits retaliation against workers who exercise their rights under the ordinance.
Enforcement provisions include civil action or injunction options, with possible damages for violations and attorney's fee recovery in enforcement actions.
City staff said Santa Monica has a history of worker protections in its tourism and hospitality industries. The city first adopted a worker recall ordinance in 2001 following the Sept. 11 terrorist attacks and economic decline. In 2019, the council adopted hotel worker protections that included retention requirements during ownership changes.
The current worker recall provisions for businesses in the Coastal Zone and extended Downtown core with $5 million in gross receipts remain unchanged under the proposed ordinance.
The City Council will consider introducing the ordinance for first reading Tuesday. Staff recommends the council adopt a finding that the ordinance is exempt from California Environmental Quality Act review.