New employment related ordinances for San Francisco and Oakland retail businesses require them to offer hours to current part-time workers before offering hours to new hires. In addition, beginning March 1, 2015, an Oakland ordinance will preclude employers from funding mandated increases in paid sick time benefits by reducing “vacation or other non-wage benefits.” This means that Oakland employers, who already provide employees PTO, cannot reduce that PTO to offset the new burdens of the Oakland ordinance.
Similar provisions apply in San Francisco. Article 1 Section 10 of the United States Constitution contains the following clause: “No State shall … pass any … Law … impairing the Obligation of Contracts …”
First, let us note that if a State can’t do it, neither can a city, since a city’s legal authority and reach is subordinate to what is permitted to a state.
Originally, this provision meant that if private parties (such as an employer and employee) reached a contractual agreement, the government couldn’t pass a law making that private agreement void or unenforceable, unless the private contractual agreement violated some other constitutional provision.
These city ordinances seem to contradict what our forefathers intended with that section of the U.S. Constitution. Over the last 100 years however, the U.S. Supreme Court has strayed somewhat from this proposition.
There are those who believe that there is nothing wrong with the government passing these types of ordinances and mandates. There are those who believe that the government’s powers derive from the people, and should not infringe on the people’s constitutional rights and find that ruling overbearing, intrusive and improper, based on the first paragraph of the Declaration of Independence (“… Governments are instituted among Men, deriving their just powers from the consent of the governed …”).
In which camp do you pitch your tent?
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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