REPORT TO COUNCIL
SUBJECT
Title
Discussion and Possible Action to Introduce Service Worker Retention Ordinance
Report
BACKGROUND
At the September 20, 2025 Council meeting (RTC 25-0246), staff presented findings from outreach to the business community and labor groups and recommended against adopting a Service Worker Retention Ordinance (SWRO) because Sunnyvale does not share the conditions present in cities that have adopted similar ordinances including convention centers, airports and major event facilities where service worker retention issues have surfaced. Council directed staff to return with a proposed SWRO for consideration with the following parameters:
Draft language clarifying how the ordinance applies to federal contracts or to businesses that have the Federal Government as a client or a funding source;
Apply the ordinance to businesses with 50 employees or more;
Clarify the for-cause termination details of the ordinance;
Perform outreach to business and labor groups to seek input;
Return to Council within 1 year with the draft ordinance; and
Change the $25,000 or more threshold for contracts for building and/or food services to $50,000 or more.
Staff researched cities with similar ordinances, developed a draft ordinance based on Council’s requested parameters, and conducted additional outreach to business and labor groups. Staff’s research did not identify a comparable ordinance that applies broadly to private businesses in a city without the types of large facilities that have been a focus of similar ordinances, such as convention centers, airports, major event facilities, or other large venues. Some jurisdictions identified through the research have more limited ordinances that apply to specific geographic areas, facilities, or circumstances.
EXISTING POLICY
Policy 5.1.1 Socio-Economic -Goal 5.1D Support efforts to create employment opportunities for economically disadvantaged individuals, disabled individuals, minorities, women, youth a...
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