1 City Council Meeting: January 27, 2026 Santa Monica, California ORDINANCE NUMBER _________ (CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA TO AMEND CHAPTER 4.66 TO PROVIDE FOR RECALL OF
WORKERS AT HOTELS ON CITY-OWNED PROPERTY AND AT HOSPITALITY BUSINESSES ON THE SANTA MONICA PIER AND ADDING CHAPTER 4.69 TO
PROVIDE FOR RETENTION OF WORKERS AT HOSPITALITY BUSINESSES ON THE
SANTA MONICA PIER
WHEREAS, the City of Santa Monica, host to millions of visitors annually, has a long history of supporting its tourism and hospitality industries as well as supporting the wellbeing and rights of workers in those establishments; and WHEREAS, on December 11, 2001, the City Council adopted Ordinance Number 2031 (CCS), adding Chapter 4.66, Recall of Workers, to the Santa Monica Municipal Code, which created requirements for the recall from the layoff of workers of certain businesses located in the Coastal Zone and extended Downtown Core that had gross receipts of $5 million for that location in the year 2000; and WHEREAS, on September 10, 2019, the City Council adopted Ordinance Number 2614 (CCS), adding Santa Monica Municipal Code Chapter 4.67, Hotel Worker Protections, which, among other things, provides retention protections for hotel workers in the event of a change of hotel ownership or control; and WHEREAS, the COVID-19 pandemic resulted in a sudden 26.8% decline in General Fund revenue in FY 2020-21; and
WHEREAS, the City has faced challenges achieving its revenue, expenditures, and General Fund reserve targets during the past several years; and 2 WHEREAS, the recent financial forecasts anticipate that the City will continue to operate a structural deficit for several years; and
WHEREAS, the federal government has discussed or implemented several economic policies, including tariffs, mass deportations, tax cuts, and deregulation, which may impact the national and local economy; and
WHEREAS, some economists predict that the national economy will continue to be an inflationary economic environment with rising costs of goods and labor; and WHEREAS, on September 9, 2025, the City Council adopted Resolution Number 11698 (CCS), identifying local fiscal distress due to the current financial condition of the City, including the significant drawdown of reserves and interfund payment obligations, coupled with uncertain revenues and increasing costs and liabilities warrants; and WHEREAS, on October 28, 2025, the City Council adopted the Santa Monica Realignment Plan, predicated around restoring safety, revitalizing key civic spaces, growing economic activity, rebuilding City organizational strength, and returning the City to fiscal balance; and
WHEREAS, over the next several years, the Los Angeles region will become a global stage for some of the world’s most watched sporting and cultural events, which will draw millions of visitors, concentrate international media attention, and generate significant economic activity across Southern California; and WHEREAS, on December 16, 2025, the City Council discussed the City’s participation in these upcoming events, beginning with activities on the Pier to support the FIFA World Cup in June and July 2026; a collaboration to produce a new music and cultural festival series on Santa Monica beach in the Fall of 2026; a week of fan-focused 3 programming and broadcast activity on the Pier as part of Super Bowl LXI, which is scheduled to return to SoFi Stadium in February 2027; and summer 2028, when the Olympic and Paralympic Games will bring global audiences, cultural festivals, and hospitality activations to venues throughout the region; and WHEREAS, the Realignment Plan’s goals are furthered by protecting the City’s investments in hotels located on City-owned land and hospitality businesses located on the Santa Monica Pier (“Pier”); and
WHEREAS, the success of the upcoming major events is strengthened with a stable workforce to support local businesses; and
WHEREAS, although there is reason for optimism as the City implements the Realignment Plan and prepares for upcoming major events, forecasts for the local and national economy threaten hospitality and tourism businesses, which could lead to layoffs; and
WHEREAS, recall rights for workers ensure fair employment practices during times of economic difficulty and reduce the demand for government-funded social services; and WHEREAS, 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; and WHEREAS, ensuring that workers for hospitality businesses on the Santa Monica Pier have an opportunity to continue working for a business upon change in ownership, control, or operation will prevent both unnecessary disruption to the labor market and increased demands on social services provided by the City, and thereby maintain the 4 stability and high level of service in the hospitality businesses in the City, which promotes the public welfare; and
WHEREAS, given that tourism is one of the largest industries in the City and in the entire region, establishing the worker recall and retention standards set forth in this Ordinance will not only improve worker working conditions but also benefit the local and regional economy overall, and thereby promote the public health, safety, and welfare.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Santa Monica Municipal Code Chapter 4.66 is hereby amended to read as follows:
Chapter 4.66 RECALL OF WORKERS
4.66.010 Definitions. For purposes of this Chapter, the following words or phrases shall have the following meanings:
a. “Business” means a Coastal Zone business, extended downtown core business, hotel, or a Pier business. For purposes of this Chapter, “business” does not include nonprofit entities.
b. “Coastal Zone” means that area bounded by the Pacific Ocean on the west, by the City borders on the south and north, and on the east by the Lincoln Boulevard centerline south of Pico Boulevard and Fourth Street north of Pico Boulevard. Properties adjacent to the east side of Fourth Street between Pico Boulevard and Colorado Boulevard are included within the area defined by this subsection; otherwise the Fourth Street boundary shall be at the centerline.
5 c. “Coastal Zone business” means a business operating within the Coastal Zone with gross receipts over five million dollars in the year 2000 for that location. d. “Coastal Zone employer” means any person who owns, controls, or operates a Coastal Zone business, and includes any person, contractor, or subcontractor who, in a managerial, supervisory, or confidential capacity, employs extended Coastal Zone workers to provide services at a Coastal Zone business in conjunction with the business’s purpose.
e. “Coastal Zone worker” means any person who is employed by a Coastal Zone business. “Extended downtown core worker” does not include a managerial, supervisory or confidential employee.
f. “Employer” means a Coastal Zone employer, extended downtown core employer, hotel employer or Pier employer.
g. “Extended downtown core” means that area bounded by Ocean Avenue on the west, Wilshire Boulevard on the north, Fifth Street on the east and Colorado Boulevard on the south. Properties on both sides of the boundary streets shall be included within this definition.
h. “Extended downtown core business” means a business operating within the extended downtown core with gross receipts over five million dollars in the year 2000 for that location.
i. “Extended downtown core employer” means any person who owns, controls, or operates an extended downtown core business, and includes any person, contractor or subcontractor who, in a managerial, supervisory, or confidential capacity, 6 employs extended downtown core workers to provide services at an extended downtown core business in conjunction with the business’s purpose. j. “Extended downtown core worker” means any person who is employed by an extended downtown core business. “Extended downtown core worker” does not include a managerial, supervisory or confidential employee. k. “Hotel” means an establishment that provides temporary lodging in the form of overnight accommodations in guest rooms to transient patrons who maintain a permanent place of residence elsewhere for payment for periods of thirty consecutive calendar days or less, and may provide additional services, such as conference and meeting rooms, restaurants, bars, or recreation facilities available to guests or to the general public. “Hotel” includes motor lodges, motels, apartment hotels, and tourist courts meeting the definition set forth above. “Hotel” also includes any contracted, leased or sublet premises operated in conjunction with a hotel or that is used for the primary purpose of providing services at a hotel. “Hotel” does not include a hostel, which is a lodging facility primarily characterized by dormitory-style accommodations, shared bathrooms, and reservations of beds rather than rooms. “Hotel” also does not include corporate housing, rooming houses, boarding houses, or private residential clubs, singleroom occupancy housing, vacation rentals, or bed and breakfast establishments within a single-unit residence.
l. “Hotel employer” means any person who owns, controls, or operates a hotel, and includes any person, contractor or subcontractor who, in a managerial, supervisory, or confidential capacity, employs hotel workers to provide services at a hotel in conjunction with the hotel’s purpose.
7 m. “Hotel worker” means any person who is employed by a hotel employer to provide services at a hotel. “Hotel worker” does not include a managerial, supervisory or confidential employee.
n. “Laid off worker” means any worker who, in a particular week, performs at least two hours of work within the geographical boundaries of the City for an employer, was employed by an employer for six months or more, and whose most recent separation was due to lack of business, a reduction in force or other economic, non-disciplinary reason. Laid off workers includes Coastal Zone and extended downtown core workers with a separation from active service occurring after September 11, 2001, and hotel and Pier workers with a separation from active service occurring after September 9, 2025. o. “Length of service” means the total of all periods of time during which a worker has been in active service, including periods of time when the worker was on leave or on vacation.
p. “Pier” means Santa Monica Pier, consisting of both the Newcomb Pier and the Municipal Pier, protruding from the Santa Monica State Beach at the southwesterly terminus of Colorado Avenue, and extending for approximately two thousand one hundred thirty-five feet into the Santa Monica Bay.
q. “Pier business” means a business that provides hospitality services on the Pier, including eating and drinking establishments, as defined by Santa Monica Municipal Code Section 9.51.020(B)(8), large-scale facilities, as defined by Santa Monica Municipal Code Section 9.51.020(B)(7)(d) and small-scale facilities, as defined by Santa Monica Municipal Code Section 9.51.020(B)(7)(e) and employs 5 or more Pier workers. 8 r. “Pier employer” means any person who owns, controls, or operates a Pier business, and includes any person, contractor or subcontractor who, in a managerial, supervisory, or confidential capacity, employs Pier workers to provide services at a Pier business in conjunction with the business’s purpose.
s. “Pier worker” means any person who is employed by a Pier employer to provide services at the Pier. “Pier worker” does not include a managerial, supervisory or confidential employee.
t. “Worker” means a Coastal Zone worker, extended downtown core worker, hotel worker or a Pier worker.
Coastal zone. That area bounded by the Pacific Ocean on the west, by the City borders on the south and north, and on the east by the Lincoln Boulevard centerline south of Pico Boulevard and Fourth Street north of Pico Boulevard. Properties adjacent to the east side of Fourth Street between Pico Boulevard and Colorado Boulevard are included within the area defined by this subsection; otherwise the Fourth Street boundary shall be at the centerline.
Employee. Any person who does not actually work as a manager, supervisor or confidential employee, and who is not required to possess an occupational license.
Extended downtown core. That area bounded by Ocean Avenue on the west, Wilshire Boulevard on the north, Fifth Street on the east and Colorado Boulevard on the south.
Properties on both sides of the boundary streets shall be included within this definition.
Laid off employee. Any employee who was employed by the employer for six months or more and whose most recent separation from active service occurred after September 9 11, 2001, and was due to lack of business, a reduction in force or other, economic, nondisciplinary reason.
Length of service. The total of all periods of time during which an employee has been in active service, including periods of time when the employee was on leave or on vacation.
4.66.020 Applicability of requirements.
The requirements of this chapter shall apply to Coastal Zone employers, extended downtown core employers, hotel employers operating on City-owned property, and Pier employers.
The requirements of this chapter shall apply to employers doing business at a location in the Coastal Zone or Extended Downtown Core with gross receipts over five million dollars in the year 2000 for that location.
4.66.030 Right of recall.
a. Preference for Laid Off Workers Employees. An employer shall offer in writing, to the last known address of laid off workers employees, all positions which are or become available after the effective date of this Chapter for which the laid off workers employees are qualified. A laid off worker employee is qualified for a position if the worker employee: (1) held the same or similar position at the same site of employment at the time of the worker’s employee's most recent separation from active service with the employer; or (2) is or can be qualified for the position with the same training that would be provided to a new worker employee hired into that position. The employer shall offer positions to laid off workers employees in an order of preference corresponding to categories (1) and (2) in the preceding sentence. Where more than one worker employee 10 is entitled to preference for a position, the employer shall offer the position to the worker employee with the greatest length of service with the employer at the employment site. b. Time Limit. A laid off worker employee who is offered a position pursuant to this Chapter shall be given no less than ten days in which to accept or decline the offer.
4.66.040 Supersession Supercession by collective bargaining agreement.
All of the provisions of this Chapter, or any part thereof, may be waived pursuant to in a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in such agreement in clear and unambiguous written terms. Neither party to a collective bargaining agreement relationship may waive or supersede any provision of this Chapter by means of unilaterally imposed terms and conditions of employment. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute, or be permitted as, a waiver of all or any part of the provisions of this Chapter.
4.66.050 Retaliatory Action Prohibited
No employer shall refuse to employ, terminate, reduce in compensation, or otherwise take any adverse action against any person for seeking to exercise or enforce his or her rights under this Chapter by any lawful means, for participating in proceedings related to this Chapter, for opposing any practice proscribed by this Chapter, or for otherwise asserting rights under this Chapter. There shall be a rebuttable presumption that an adverse employment action taken against a worker within ninety days of the worker's exercise of rights under this Chapter was taken in retaliation for the exercise of such rights. This Section shall also apply to any laid off worker who mistakenly, but in good faith, alleges noncompliance with this Chapter.
11 4.66.0650 Remedies
a. Civil Action. The City or any aggrieved person may enforce the provisions of this Chapter by means of a civil action.
b. Injunction. Any person who commits an act, proposes to commit an act, or engages in any pattern or practice that violates this Chapter may be enjoined therefrom by a court of competent jurisdiction. An action for injunction under this subsection may be brought by any aggrieved person, by the City Attorney, or by any person or entity who will fairly and adequately represent the interests of an aggrieved person or persons. c. Damages and Penalties. Any person who violates the provisions of this Chapter is liable for any actual damages suffered by any aggrieved person or for statutory damages up to the amount of one hundred dollars per aggrieved person per day. For willful violations, the amount of monies and penalties to be paid under this subsection shall be trebled.
d. Attorneys’ Fees and Costs. In a civil action brought under this Section, the court shall award the prevailing party reasonable attorneys' fees and costs, including expert witness fees, except that, notwithstanding Section 998 of the Code of Civil Procedure, a prevailing defendant shall not be awarded fees and costs unless the court finds the action was frivolous, unreasonable, or groundless when brought, or the plaintiff continued to litigate after it clearly became so.
e. Cumulative Remedies. The remedies set forth in this Chapter are cumulative. Nothing in this Chapter shall be interpreted as restricting, precluding, or otherwise limiting a separate or concurrent criminal prosecution under this Code or State law.
12 f. The provisions of this Chapter shall not be construed as creating a cause of action against the City.
Any person, including the City, may enforce the provisions of this Chapter by means of a civil action for injunctive and monetary relief. The burden of proof in such cases shall be preponderance of the evidence. Any person who violates or aids another person to violate the provisions of this Chapter is liable for each and every such offense for the actual damages suffered by any aggrieved party or for statutory damages in the sum of five hundred dollars, whichever is greater, and shall be liable for such attorneys' fees and costs as may be determined by the court in addition thereto. The court may also award punitive damages to any plaintiff, including the City, in a proper case as defined by Civil Code Section 3294. The burden of proof for purposes of punitive damages shall be clear and convincing evidence.
SECTION 2. Santa Monica Municipal Code Chapter 4.69 is hereby added and shall read as follows:
Chapter 4.69 RETENTION OF WORKERS
4.69.010 Definitions. For purposes of this Chapter, the following words or phrases shall have the following meanings:
a. “Affected business” means: (1) in the event of a change in control as defined in subsection (c)(1) below, the business or discrete portion of the business that has been the subject of the change in control and remains in operation following the change in control; or (2) in the event of a change in control as defined in subsection (c)(2) or (c)(3) below, the business that remains in operation following the change in control of that business.
13 b. “Business” means a Pier business. For purposes of this Chapter, “business” does not include nonprofit entities.
c. “Change in control” means: (1) any sale, assignment, transfer, contribution, or other disposition of all or substantially all of the assets used in the operation of a business or a discrete portion of the business that continues in operation; (2) any sale, assignment, transfer, contribution, or other disposition of a controlling interest (including by consolidation, merger, or reorganization) of an employer or any person who controls an employer; or (3) any other event or sequence of events (including a purchase, sale, lease, or termination of a management contract or lease) that causes the identity of the employer at a business to change. For purposes of this Chapter, a change in control shall be defined to occur on the date of execution of the document effectuating the change in control.
d. “Eligible worker” means a worker employed by an incumbent Pier employer at the time of a change in control and who has been so employed for at least two months prior to the change in control.
i. “Incumbent Pier employer” means a Pier employer who owns, controls, or operates a Pier business prior to a change in control of the Pier business or of a discrete portion of the Pier business that continues to operate after the change in control. j. “Pier” means Santa Monica Pier, consisting of both the Newcomb Pier and the Municipal Pier, protruding from the Santa Monica State Beach at the southwesterly terminus of Colorado Avenue, and extending for approximately two thousand one hundred thirty-five feet into the Santa Monica Bay.
14 k. “Pier business” means a business that provides hospitality services on the Pier, including eating and drinking establishments, as defined by Santa Monica Municipal Code Section 9.51.020(B)(8), large-scale facilities, as defined by Santa Monica Municipal Code Section 9.51.020(B)(7)(d) and small-scale facilities, as defined by Santa Monica Municipal Code Section 9.51.020(B)(7)(e) and employs 5 or more workers. l. “Pier employer” means any person who owns, controls, or operates a Pier business, and includes any person or contractor who, in a managerial, supervisory, or confidential capacity, employs Pier workers to provide services at a Pier business in conjunction with the business’s purpose.
m. “Pier worker” means any person who is employed by a Pier employer to provide services at the Pier. “Pier worker” does not include a managerial, supervisory or confidential employee.
n. “Successor Pier employer” means a Pier employer who owns, controls, or operates a Pier business after a change in control.
o. “Worker” means a Pier worker.
p. “Worker retention period” means the period of time beginning on the date of a change in control and extending to 90 days from the first date that an affected business is open to the public after a change in control.
4.69.020 Pier Worker Retention
a. Notice of change in control. Within five days of a change in control of a Pier business, a successor Pier employer shall post written notice of the change in control at the location of the affected Pier business.
15 1. This written notice shall remain posted during any closure of the affected Pier business and for six months following the first date on which the affected Pier business is open to the public under the successor Pier employer.
2. This written notice shall include, but not be limited to, the name and contact information of the incumbent Pier employer, the name and contact information of the successor Pier employer, and the effective date of the change in control.
3. This written notice shall be posted in a conspicuous place at the affected Pier business and shall be readily visible to eligible Pier workers, other employees, and applicants for employment.
b. Incumbent Pier employer responsibilities. Within fifteen days of a change in control, an incumbent Pier employer shall provide a successor Pier employer with a list of eligible workers. This list shall include the name, date of hire, and job classification of each eligible worker. A successor Pier employer shall be required to maintain and hire from this list during the worker retention period. c. Successor Pier employer responsibilities. A successor Pier employer shall, during the worker retention period, offer each eligible worker employment for no less than ninety days, except that:
1. A successor Pier employer shall not be required to offer employment to an eligible worker if the successor Pier employer has reasonable and substantiated cause not to retain that eligible worker based on that eligible worker’s individual performance or conduct while employed by the incumbent Pier employer; and
16 2. If a successor Pier employer determines during the worker retention period that it requires fewer workers than were required by the incumbent Pier employer, the successor Pier employer shall retain eligible workers pursuant to the terms of a relevant collective bargaining agreement, if any, or by seniority and experience within each job classification to the extent that comparable job classifications exist.
d. An eligible worker retained pursuant to this Section shall be employed under terms and conditions established by the successor Pier employer as required by law and shall not be discharged except for good cause based on individual performance or conduct.
e. An offer of employment made pursuant to subsection (c) shall be made in writing and shall remain open for at least ten business days from the date of the offer. f. A successor Pier employer shall retain written verification of each offer of employment made pursuant to subsection (c). This verification shall include the name, address, date of hire, and job classification of the eligible worker to whom the offer was made. A successor Pier employer shall retain the required verification for no less than three years from the date the offer is made.
g. At the end of the worker retention period, a successor Pier employer shall provide each worker retained pursuant to this Section with a written performance evaluation. If the worker’s performance was satisfactory, the successor Pier employer shall consider offering the worker continued employment under the terms and conditions established by the successor employer and as required by law. A successor Pier employer 17 shall retain the written performance evaluation required under this subsection for no less than three years from the date it is issued.
h. The rights to retention set forth in this Section do not apply to any managerial, supervisory, or confidential employee and do not include the right to retain any supervisory or management responsibility.
4.69.030 Supersession by collective bargaining agreement.
All of the provisions of this Chapter, or any part thereof, may be waived pursuant to a bona fide collective bargaining agreement, but only if the waiver is explicitly set forth in such agreement in clear and unambiguous written terms. Neither party to a collective bargaining agreement relationship may waive or supersede any provision of this Chapter by means of unilaterally imposed terms and conditions of employment.
4.69.040 Retaliatory Action Prohibited
No employer shall refuse to employ, terminate, reduce in compensation, or otherwise take any adverse action against any person for seeking to exercise or enforce his or her rights under this Chapter by any lawful means, for participating in proceedings related to this Chapter, for opposing any practice proscribed by this Chapter, or for otherwise asserting rights under this Chapter. There shall be a rebuttable presumption that an adverse employment action taken against a worker within ninety days of the worker's exercise of rights under this Chapter was taken in retaliation for the exercise of such rights. This Section shall also apply to any worker who mistakenly, but in good faith, alleges noncompliance with this Chapter.
4.69.050 Remedies
18 a. Civil Action. The City or any aggrieved person may enforce the provisions of this Chapter by means of a civil action.
b. Injunction. Any person who commits an act, proposes to commit an act, or engages in any pattern or practice that violates this Chapter may be enjoined therefrom by a court of competent jurisdiction. An action for injunction under this subsection may be brought by any aggrieved person, by the City Attorney, or by any person or entity who will fairly and adequately represent the interests of an aggrieved person or persons. c. Damages and Penalties. Any person who violates the provisions of this Chapter is liable for any actual damages suffered by any aggrieved person or for statutory damages up to the amount of one hundred dollars per aggrieved person per day. For willful violations, the amount of monies and penalties to be paid under this subsection shall be trebled.
d. Attorneys’ Fees and Costs. In a civil action brought under this Section, the court shall award the prevailing party reasonable attorneys' fees and costs, including expert witness fees, except that, notwithstanding Section 998 of the Code of Civil Procedure, a prevailing defendant shall not be awarded fees and costs unless the court finds the action was frivolous, unreasonable, or groundless when brought, or the plaintiff continued to litigate after it clearly became so.
e. Cumulative Remedies. The remedies set forth in this Chapter are cumulative. Nothing in this Chapter shall be interpreted as restricting, precluding, or otherwise limiting a separate or concurrent criminal prosecution under this Code or State law.
19 f. The provisions of this Chapter shall not be construed as creating a cause of action against the City.
SECTION 3. Any provision of the Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance.
SECTION 4. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption.
APPROVED AS TO FORM:
_______________________
HEIDI VON TONGELN
Interim City Attorney