Laying down the law on layoffs

RIGHT TO RECALL: Layoffs are in the news and on a lot of people’s minds as the possibility of a recession looms. They’re on the minds of some in the Legislature, as well.

A trio of bills making their way through the Capitol would significantly expand state laws on mandatory worker retention, colloquially known as “right to recall.” That policy already applies to a small subsection of California’s workforce, including grocery staff affected by store mergers and certain hospitality workers whose workplaces were shuttered during the height of the Covid pandemic.

Labor unions have long pushed for stronger retention rights, but the economic upheaval of the last three years has supercharged the debate.

The most expansive of the three bills comes from rookie state Sen. Lola Smallwood-Cuevas, a former labor organizer who is carrying a number of closely watched measures this year. Senate Bill 627 would prohibit chain establishments — like restaurants and retail — with 100 or more locations from closing a shop without providing 60 days’ notice, and require employers to offer qualified workers the chance to transfer to another store within 25 miles if the same position becomes available. An exclusion would apply to stores independently owned by franchisees.

The bill is scheduled to receive its second policy committee hearing in Senate Judiciary today.

Smallwood-Cuevas and the powerful California Labor Federation, the group behind the bill, have framed the proposal as a way to make sure large companies don’t retaliate against employees who are organizing. Smallwood-Cuevas pointed to the examples of Chipotle — which has settled with former workers after closing stores where unionization efforts were happening — and Starbucks, which has been accused of undermining organizing efforts.

“Closing businesses to prevent the workers from exercising their right to have some say over wages and working conditions is severely problematic, and it destabilizes our communities and our state,” Smallwood-Cuevas said.

Ashley Hoffman, a lobbyist for the California Chamber of Commerce, argues that SB 627 is too broad, applying to businesses whether or not they are embroiled in labor fights. CalChamber and other business groups also fear that the policy could eventually be expanded to much smaller chains.

The two other job-retention bills on the Legislature’s docket would expand existing state laws:

  • SB 723 would make permanent recall rights that lawmakers passed during the pandemic for hotel staff, building maintenance workers, airport employees and others in the hospitality sector. These protections would expire after 2024 without an extension. The bill will be heard in the Senate Labor, Public Employment and Retirement Committee on Wednesday.
  • AB 647, which has already been vetted by Assembly policy committees, would expand grocery worker recall rights, extending the period in which employers must rehire laid-off staff after a new store opens. It would also give employees the ability to sue for violations.

All three bills face fierce business opposition and will likely hit some roadblocks as they progress through the Legislature. But their backers think California’s recent economic volatility bolsters their case.

“We know how fragile our economy is, teetering between recession and non-recession, particularly in this moment,” Smallwood-Cuevas said.

HAPPY TUESDAY AFTERNOON! Welcome to California Playbook PM, a POLITICO newsletter that serves as an afternoon temperature check of California politics and a look at what our policy reporters are watching. Got tips or suggestions? Shoot an email to bjones@politico.com or send a shout on Twitter. DMs are open!

WHAT YOU NEED TO KNOW TODAY

NATIONAL NEW$OM: Gov. Gavin Newsom is joining a slew of Democrats fundraising for President Joe Biden today, promoting the president’s reelection fund in emails and texts to supporters of his new Campaign for Democracy committee. Touching on some familiar rhetoric, the governor warned supporters that without significant financial support, the Democratic Party could be in danger of handing over the keys to Donald Trump or Ron DeSantis. Biden is expected to raise millions on Day One, and Newsom’s efforts alone raised more than $100,000 in the first few hours. – Lara Korte

ON THE BEATS

ANTI-CASTE CALIFORNIA — A bill that would make California the first state to ban caste discrimination brought hundreds of people to the statehouse today.

State Sen. Aisha Wahab (D-Hayward)’s Senate Bill 403 would make caste — which is strongly associated with South Asia and has long been abolished in India — a “protected characteristic” under the state’s anti-discrimination laws. The legislation cleared the Senate Judiciary Committee with bipartisan support after public testimony from both sides, with many making the trip from Wahab’s Bay Area district about 100 miles away.

Demonstrators showed up in droves ahead of the hearing, some having camped overnight, and a rowdy crowd — with homemade signs and T-shirts — stretched down the block.

A few senators supported the bill only on the condition that Wahab work to assuage concerns from the proposal’s opponents, who claim that it will assign a status of “oppressor” to those not in classified lower castes. Wahab said at the hearing that the bill does not contend that one South Asian group is more likely to perpetrate discrimination than any other group.

“I think the fears that have been expressed today are very honest, and I understand where they are coming from, but I wonder whether some of them are based on fear rather than the reality of what’s in the bill,” said state Sen. Ben Allen (D-Santa Monica). — Eric He

MELTDOWN — California is about to find out whether our wet winter will turn into a spring disaster. The temperature is rising, and the massive Sierra snowpack is starting to melt. It’s already resurrected the long dormant Tulare Lake, where rising waters are threatening to flood Corcoran and nearby communities. The Merced River in Yosemite National Park is expected to exceed its flood stage on Thursday. Newsom and state officials were in Kern County today, discussing plans to pump as much water as possible and look for ways to shore up the levees. There seems to be enough space in the state’s reservoirs for the moment to absorb the flows of the coming days. Still, the risk was clearly visible, as Newsom and other officials held a news conference against the backdrop of inland sea in what had been active farmland just a few weeks ago. — Ben Fox

AROUND CALIFORNIA

— “OC mobile home residents, who looked to legislature for rent relief, will have to wait,” by The Orange County Register’s Kaitlyn Schallhorn: From Assemblymember Al Muratsuchi (D-Torrance) is legislation that would cap mobile home space rents from increasing more than 3% plus the percentage of change in cost of living, or 5% annually, whichever is lower. It would not preempt any local ordinance that may offer even stronger protections for renters, Muratsuchi said.

The idea behind the bill is to protect lower-income and seniors on fixed incomes from losing their mobile homes as rents across the state skyrocket, said Muratsuchi.

But the legislation hit a roadblock last week when a committee decided not to hear the bill — in other words, pause its movement in the legislature — because of pending litigation.

— “California faces rapid snowmelt from heat wave; flood fears in Yosemite, elsewhere,” by the Los Angeles Times’ Hayley Smith: Temperatures in Central California are forecast to climb into the high 80s and mid-90s beginning Wednesday and into the weekend, with the potential for some areas to approach daily records.

Nighttime temperatures are also expected to be warmer than usual — around 40 degrees — meaning Sierra snowmelt could start to happen 24 hours a day, UCLA climate scientist Daniel Swain said.

“The ‘big melt’ is now here,” Swain said. “We said there would eventually be some week between about March and May when the rate of snowmelt dramatically increased, either due to a heat wave or late-season warm storm. I think this is probably that week now.”

MIXTAPE

— “How Biden’s re-election launch affects three key Californians: Kamala Harris, Gavin Newsom and Kevin McCarthy,” by the San Francisco Chronicle’s Joe Garofoli.

— “SEIU Union asks California Supreme Court to overturn Prop. 22,” by The Sacramento Bee’s Maya Miller.

— “A 4.0 student beat all the odds. But he can’t afford a UC campus,” by the Los Angeles Times’ Teresa Watanabe.

Compiled by Matthew Brown