Mayor Klein and Council Members
Sunnyvale City Council
456 W. Olive Avenue
Sunnyvale, CA 94086
September 11, 2026
Dear Mayor Klein and Councilm
embers,
On behalf of the more than 8,500 members of UNITE HERE Local 19, we express our organizations’ full support for the Service Worker Retention Ordinance. UNITE HERE Local 19 represents approximately 1,200 workers at Google, Meta, Lockheed, and Applied Materials office campuses in Sunnyvale. We are committed to improving conditions for essential workers at major tech companies in Sunnyvale, where we continue to push for respect, fair treatment, and a real voice on the job.
We invite you to review the following FAQ, which dispels common misconceptions about service worker retention ordinances:
(1) Is there a need for this ordinance in Sunnyvale?
Yes, Sunnyvale is home to thousands of service workers, many of whom work for the large technology sector in Sunnyvale, which typically relies on subcontracted work. Office complexes frequently switch contractors for food and building services. This ordinance ensures that low-income workers are not displaced if their employer loses the service contract. This essential ordinance also benefits businesses and contractors by reducing hiring and training costs and promoting the retention of an experienced, steady workforce. As Sunnyvale’s businesses are dominated by the technology sector, specifically office campuses that employ service workers, this ordinance provides necessary support and security to working people.
Neighboring Santa Clara enacted a service worker ordinance after 70 Intel workers were laid off the day before Thanksgiving due to a contract change. This ordinance is an opportunity for Sunnyvale to be proactive, set a standard of stability for its most vulnerable workers, and foster smooth transitions during volatile contractual changes for both employees and employers. (2) Is the ordinance redundant with the WARN Act?
The WARN Act provides only a 60-day notice before a layoff and offers no opportunity for employees to demonstrate their job expertise because it contains no retention provisions after the new contractor is in place. This ordinance would create an important 90-day transition and trial period for workers to prove themselves to the new contractor. (3) How will the ordinance be enforced?
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This ordinance is privately enforced. It does not strain City resources because it is not the City’s responsibility to enforce it. The threat of private litigation under other ordinances appears sufficient for effective enforcement, as businesses comply to avoid legal consequences.
In the event of a violation of this ordinance, employees or their representatives may bring legal action against the successor contractor. Those found in violation will award back pay and, in some cases, reinstatement to the employee(s) who filed the complaint. An injunction may be issued if the contractor is actively violating this chapter of the code.
A Worker Retention ordinance is therefore a rare and important tool for Sunnyvale to protect its most vulnerable workers without burdening city staff or city funds.
The California Supreme Court and federal courts have repeatedly held that worker- retention laws are legal and enforceable. Cal. Grocers Association v. City of Los Angeles, 52 Cal. 4th 177 (2011); R.I. Hospitality Ass’n v. City of Providence, 667 F.3d 17, 32 (1st Cir. 2011); Washington Service Contractors Coalition v. District of Columbia, 54 F.3d 811 (D.C. Cir. 1995); Filo Foods, LLC v. City of SeaTac, 183 Wash. 2d 770, 800 (2015). No court has suggested that they are unenforceable.
(4) How does this ordinance restrict covered employers and contractors? The ordinance does not impose a financial burden on businesses in Sunnyvale that contract for services. It does not affect the client’s ability to contract services, and it does not impact the economics of the contractor’s businesses. The ordinance does not cover employees' wages or benefits. It also does not restrict new contractors from downsizing the workforce if their services no longer require the same number of employees; it merely standardizes the practice of retaining workers in order of seniority. Except during the 90-day transition period, the ordinance places no limits on employers terminating unsatisfactory employees. New contractors can also bring their own management when taking over a contract. Furthermore, companies may save money on recruitment, hiring, and training – a significant cost of many organizational budgets.
(5) How does this ordinance impact small businesses and business growth? This ordinance has minimal impact on small businesses; it protects subcontracted workers at large businesses with 50 or more employees in Sunnyvale. According to the 2024 Strategic Economic Development Plan, Sunnyvale has over 6,800 businesses with 50 or fewer employees, and small businesses account for approximately 98% of businesses in the city. This ordinance does not apply to small businesses with fewer than 50 employees and is specifically designed to ensure worker protections for employees of large businesses.
Furthermore, if a contract change leads to mass layoffs of one workforce and replacement with another, that is not business or job growth for Sunnyvale. Business growth happens when a business takes over a contract and expands its workforce, which this ordinance allows.
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(6) Is the ordinance aligned with Sunnyvale’s Economic Development Strategic Plan? Yes, this ordinance aligns with the EDSP’s primary goals, particularly the third goal:
“Engages in place-making and enhances quality of life to retain and attract new business and talented employees in today’s competitive economy.” This does not conflict with priorities to support small businesses (see question 4 response).
(7) Are worker retention ordinances only adopted in large cities with convention centers or event facilities?
Service worker retention ordinances have been adopted by a range of governments, from small cities to the county and state levels. Sunnyvale already has similar worker retention rules in place for its solid waste and recycling contracts. Workers in specific industries in nearby Emeryville, Petaluma, San Leandro, Berkeley Marina Zone, Santa Clara, Oakland, and San Francisco have benefited from the continuity of service when contracts change hands that such policies provide. You can see the larger list of counties, cities, and airports in California with similar worker retention policies attached to this letter. Note that many of these places do not have convention centers or event facilities.
At the state level, California's legislature has passed the statewide Protect Grocery Workers Jobs Act and the Displaced Janitor Opportunity Act to protect the jobs of grocery, warehouse, janitorial, and building maintenance workers. These policies cover workers in every City of California, big and small, and demonstrate the growing city- and statewide effort to foster stable employment and responsible business practices. This ordinance would extend similar protections to food service and security workers in Sunnyvale. (8) Does the ordinance raise a “legal compliance risk” for the City? No, the City does not face legal compliance risk. The ordinance applies to private employers and it does not create an obligation on the City to enforce it. State and federal courts have made clear that worker-retention laws are legal and enforceable. (9) How does this apply to companies that have federal contracts? The fact that a company also contracts with the federal government does not immunize its private service contracts from state and local employment laws. In January 2025, President Trump published an executive order that revoked President Biden’s earlier executive order establishing worker retention for federal contractors. But President Trump’s January 2025 Executive Order 14148 did not preempt state or local laws that impose a worker-retention requirement on businesses located within their jurisdictions that have federal contracts. --------------------------------
We encourage Sunnyvale to pass this ordinance and send a clear message that the city values service workers and their job security. This ordinance will substantially improve workers' employment stability, enabling them to continue to provide for their families and thrive in Sunnyvale without taxing city staff or resources. We are excited for Sunnyvale to join the front Attachment 2
lines in setting minimum labor standards on this issue, and we urge the Council to vote yes on this Service Worker Retention Ordinance.
Sincerely,
Enrique Fernandez
Business Manager
UNITE HERE Local 19
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List of Some Areas in California with Similar Worker Retention Policies:
County:
x County of Los Angeles
Cities:
x Petaluma*
x San Leandro*
x Berkeley Marina Zone*
x Emeryville*
x Santa Clara
x Oakland
x San Francisco
x Los Angeles
x Long Beach
x Santa Monica
x West Hollywood*
x San Diego
Airports:
x San José Mineta Airport
x San Francisco International Airport
x Oakland San Francisco Bay Airport
x Sacramento International Airport
x Los Angeles International Airport
*These cities do not have large convention or event centers.
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