Study Issue OCM 20-01— Service Worker Retention Ordinance Connie Verceles, Deputy City Manager
September 30, 2025
2City of Sunnyvale – Topic/Abbreviated Title – Month Year Background
2020
Request
from Unite
Here Local
19 2020
Ranked top
study issue
2020–2023
Delayed by
pandemic
2024
Research
resumed
2025
Outreach +
analysis
3City of Sunnyvale – Topic/Abbreviated Title – Month Year What is a Retention Ordinance?
Requires successor
contractors to
retain existing
employees for 90
days
Benefits: worker
stability, service
continuity,
institutional
knowledge
Typically
adopted in large
cities with
convention
centers/event
facilities
4City of Sunnyvale – Topic/Abbreviated Title – Month Year Santa Clara Ordinance
Applies to Employers with 25+
employees, entertainment
venues, & Contracts ≥ $25,000
Key rules: 90-day retention, no
dismissal without cause, layoffs by
seniority, satisfactory employees
offered permanent jobs, &
waivers via collective bargaining
5City of Sunnyvale – Topic/Abbreviated Title – Month Year Stakeholder Feedback
Businesses
Already practice employee retention voluntarily
Cost-effective to keep trained staff
Concerns: underperforming workers, federal contractor conflicts, lack of enforcement Unite Here Local 19
Supports Santa Clara–style ordinance
Ordinance will provide meaningful worker protections
Stated other cities have similar ordinance; no examples provided 6City of Sunnyvale – Topic/Abbreviated Title – Month Year Analysis
Sunnyvale lacks
convention centers/large
event facilities
Retention already
required in some City
contracts (Solid Waste)
Existing protections:
Minimum Wage,
Wage Theft Policy,
Local Hire rules
No mechanism to
monitor/enforce
private contractor
changes
Risk: confusion +
lawsuits without
measurable
benefits
7City of Sunnyvale – Topic/Abbreviated Title – Month Year Recommendation
Do not adopt Service Worker Retention Ordinance; close Study Issue OCM 20- 01 Sunnyvale lacks facilities where ordinance is relevant Businesses already retain workers voluntarily
No practical enforcement mechanism