The City of Long Beach recently passed an ordinance that imposes new staffing and operational requirements on grocery and drug stores using self-service checkout (“SCO”) systems. The law, Ordinance No. ORD-25-0010, was approved on August 21, 2025, and goes into effect September 21, 2025.

For this week’s Friday’s Five, here are the five key points business owners should know and why employers need to understand the dynamics at issue here:

1. Who is Covered?

The ordinance applies to two types of retail establishments operating within the City of Long Beach:

Food Retail Establishments:

The ordinance defines Food Retail Establishments as:

“retail store that is either: (1) over fifteen thousand (15,000) square feet in size and sells primarily household foodstuff for offsite including fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods and/or prepared foods (other household supplies or products are secondary to the primary purpose of food sales); or (2) over eighty-five thousand (85,000) square feet and with ten percent (10%) of their sales floor area dedicated to the sale of non-taxable merchandise including the sale of fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods and/or prepared foods.”

Drug Retail Establishments:

The ordinance defines Drug Retail Establishments as:

“retail store that sells a variety of prescription and nonprescription medicines and miscellaneous items, including drugs, pharmaceuticals, sundries, fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, prepared foods, and other merchandise.”

2. Checkout Requirements

  • If SCO stations are available, the store must also have at least one traditional staffed checkout station open at the same time.
  • SCO shall limit sales (and advertise this) to 15 items or fewer.
  • Certain items cannot be sold through SCO:
    • Alcohol and tobacco (anything requiring ID).
    • Items with theft-deterrent devices (tags, locked cases).

3. Staffing Ratios

The ordinance establishes strict staffing rules:

  • At least one dedicated employee must supervise SCO stations whenever they are in operation.
  • If more than one SCO station is open, the store must maintain a 1:3 ratio (one employee for every three SCO stations).
  • Supervising employees may not be assigned other tasks that interfere with SCO monitoring.

4. Enforcement and Penalties

  • Private right of action: Customers and employees can sue for violations.
  • Penalties start at $100 per employee, per day, escalating by $100 each day until cured, up to $1,000 per employee, per day.
  • Prevailing plaintiffs can also recover attorneys’ fees and costs.
  • The ordinance prohibits retaliation against employees who exercise their rights under this law.

5. Effective Date

The ordinance was adopted by the Long Beach City Council on August 12, 2025, approved by the Mayor on August 21, 2025, and becomes effective September 21, 2025.

My Take: A Dangerous Path for Regulating Automation

While the ordinance is framed as a measure to reduce retail theft and protect workers, it sets a troubling precedent. By mandating staffing ratios and limiting how self-checkouts may be used, the City of Long Beach is effectively regulating automation out of existence in grocery and drug retail stores.

This is dangerous for three reasons:

  1. Competitive Disadvantage: Other cities and states allow businesses to adopt new technologies to stay competitive. By imposing labor mandates on technology, Long Beach is tying the hands of local businesses while competitors in neighboring jurisdictions can modernize more freely.
  2. Policy Overreach: Instead of targeting criminal activity directly, the ordinance burdens employers with staffing requirements and liability exposure. The risk is that this type of regulation spreads to other municipalities or industries, making it harder for businesses to innovate and control costs. 
  3. May Create Additional Legal Obligations for The City: If businesses comply with these regulations but the City fails to provide adequate police presence to protect employees and property, employers may argue the City has created a legal burden for itself. Because the ordinance is explicitly tied to public safety and theft prevention, a lack of sufficient law enforcement could be framed as bad faith regulation or an unreasonable regulatory scheme, raising broader legal challenges. 

Employers should pay close attention—not only to compliance with this ordinance but also to the larger policy trend it represents.  While this ordinance currently targets grocery and drug stores, it sets a precedent for how local governments may regulate the use of automation more broadly. If this approach spreads, employers in retail, hospitality, manufacturing, and beyond could face similar mandates that drive up costs and restrict their ability to innovate.