By Jorge Casuso

February 2 , 2026 -- Hospitality businesses on the Pier and nearby hotels on City-owned property must offer open positions to laid off workers under an ordinance approved by the City Council last week.

The long-delayed ordinance -- which is meant to strike a balance between advancing worker protections and furthering the City’s economic recovery -- did not fully satisfy the warring parties.

The dramatically reduced scope of the policies the Council directed staff to draft seven months ago does not include a union-backed "labor peace agreement" that requires employers to remain neutral during organizing efforts.

The Council also is expected to reduce the number of businesses covered by raising the threshold of five or more employees when the ordinance returns for final approval next week.

"The purpose of this ordinance is very targeted (and) limited," said Councilmember Ellis Raskin, adding that the measure is still "an important step forward in our community."

"We have significantly narrowed the focus, because we are being extremely judicious," said Mayor Caroline Torosis. "We are what we are on the backs of these workers. The workers have to benefit. Period."

In a blow to employers, the Council retained a provision that shifts the burden of enforcing the ordinance from the City to the courts, allowing private litigation to be filed by employees and the hospitality workers union, UNITE HERE Local 11.

While several Councilmembers expressed their concerns, saying it was "not a hill to die on," only Councilmember Lana Negrete, who cast the lone dissenting vote, objected to the provision.

"When businesses face increased litigation exposure, costs rise, hiring slows, services are cut, and some businesses leave entirely. Residents pay the price," Negrete said.

"This approach is also directly opposed to our Realignment Plan, which was adopted to stabilize our economy, reduce unnecessary legal drag, and support recovery," she said, referring to the recovery plan adopted by the Council last October.

The ordinance approved on first reading last Tuesday covers hospitality businesses on the Pier with five or more workers and hotels on City owned property in the Coastal Zone.

Laid off workers must be offered positions that become available if they have "performed at least two hours of work" for an employer "in a particular week" and have been employed "for six months or more."

The worker must have "had a separation date after September 9, 2025, that was due to lack of business, a reduction in force or other economic, non-disciplinary reason."

The offers must be made in writing to the workers, who must be given at least 10 days to accept or decline. If there is "a change in control of the business," the workers must be retained for 90 days and given a performance evaluation.

The ordinance "prohibits retaliatory actions by employers against workers who seek to exercise or enforce their rights."

It also "provides for remedies, including enforcement through a civil action or injunction, with possible damages for violations and recovery for attorney’s fees in enforcement actions."

The ordinance -- which exempts non-profit businesses and managerial positions -- can be superseded if the business is unionized.

It remains unclear how many businesses the measure will ultimately cover, since Pier officials are not privy to employment information and the Council expressed an interest in applying it to larger businesses.

According to City Manager Oliver Chi, there were between 9 and 15 businesses on the Pier that occupy spaces of less that 1,000 square feet.

Councilmember Jesse Zwick tried to table the item until more information can be presented at next week's Council meeting, noting there were "different interests we're trying to weigh in on this difficult decision."

Councilmember Dan Hall noted that the ordinance "can make things harder for businesses" but the protections it offers "can be life-changing for workers."

Negrete, however, questioned the motivations behind the ordinance, which she noted was pushed by UNITE HERE Local 11, a powerful force in Santa Monica politics.

"My concern is not about union members themselves, but about whether this item reflects a broad community priority or a politically active special interest pushing policy through Council," Negrete said.

"In an election year, we need to carefully consider whether we are making policy based on demonstrated resident demand or organized political advocacy."