This ordinance allows certain small business employees the first opportunity to buy their business through a worker cooperative if it is up for sale. It amends the Labor and Employment Code to establish a right of first offer and a right of first refusal for these employees.
Ordinance amending the Labor and Employment Code to create a right of first offer and a right of first refusal for certain small business employees to purchase that business via a worker cooperative.
How it got here
The legislation originated from a need to protect small business employees' rights to purchase their businesses through worker cooperatives.
The City acknowledged that many small businesses lack succession plans, risking closure or acquisition, which can displace workers and harm the community's economic fabric.
The ordinance is intended to complement existing economic empowerment programs, such as the Legacy Business Program and the Community Opportunity to Purchase Act (COPA).
The Board of Supervisors introduced the ordinance to amend the Labor and Employment Code, creating rights for small business employees to purchase their businesses via worker cooperatives.
The ordinance was referred to the Department of Human Resources and the Small Business Commission for comments and recommendations.
The Small Business Commission is expected to provide feedback on the ordinance within 12 days of the referral.
Supervisors Chan and Fielder sponsored the ordinance, indicating their support for the initiative to empower small business workers.
The ordinance is currently under the 30-day rule, awaiting further action from the Board of Supervisors.
Reconstructed from attached documents & the official record