California Grocers Assn. Sues City of Los Angeles

The California Grocers Assn. has filed a lawsuit against the city of Los Angeles over an ordinance that makes it harder to immediately fire grocery store employees after a takeover.

In December, the City Council approved the “worker retention” ordinance as Eden Prairie, Minn.-based Supervalu Inc. was negotiating to acquire more than 1,100 stores from Boise, Idaho-based Albertsons Inc., including the 270 Albertsons and Bristol Farms markets in Southern California. The transaction is expected to close this year.

The suit says the ordinance is preempted by federal labor laws, conflicts with state health and safety laws and improperly dictates rules of employment.