October 5, 2021 • W. Baker Gerwig, IV
Category: Legal Updates
At the September 15 meeting, the Los Angeles County Board of Supervisors adopted a new policy that will affect hospitality businesses operating on Los Angeles County property. Policy 5.290 was recommended to the Board in a letter from the office of the County’s Chief Executive Officer. The Policy affects how labor disputes are handled at “hospitality operations” on County-owned or operated properties. “Hospitality operators” is defined in the Policy to include hotels, restaurants, and hospitality/food concessionaires. The Policy will apply regardless of whether or not the entity conducting such operations has leased directly with the County or with the County’s “lessee, licensee, or concessionaire.” It also applies to subleases, sublicenses, assignments, and transfers.
Specifically, the Policy requires that hospitality operations on County property establish “Labor Peace Agreements.” These are written agreements between a hospitality operator and a labor organization prohibiting the labor organization and its members from “engaging in picketing, work stoppages, boycotts, or other operational interferences” that would adversely impact the hospitality operation. While the Policy does not specify what, if anything, is required of hospitality operations as part of the Labor Peace Agreement, generally these Agreements require employers to: (1) not disparage the union and remain silent during organizing efforts and (2) not oppose the union’s efforts to organize.
The Policy applies to any new, amended, or renewed leases, licenses, or concession agreements and applies throughout the duration of the agreement. A failure to enter a Labor Peace Agreement prior to entering a lease, license, or concession agreement on County property shall be considered a material breach of the agreement. Such a breach would allow the County to terminate the agreement for cause. Sample language for affected leases, licenses, or concession agreements attesting to the existence and enforcement of a Labor Peace Agreement is supplied in the text of the Policy.
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THIS DOCUMENT PROVIDES A GENERAL SUMMARY AND IS FOR INFORMATIONAL/EDUCATIONAL PURPOSES ONLY. IT IS NOT INTENDED TO BE COMPREHENSIVE, NOR DOES IT CONSTITUTE LEGAL ADVICE. PLEASE CONSULT WITH COUNSEL BEFORE TAKING OR REFRAINING FROM TAKING ANY ACTION.