Existing law imposes certain requirements on grocery employers, as defined, upon the purchase or change in control of a grocery establishment, including requiring a successor grocery employer to retain eligible grocery workers for a specified period after transfer of the grocery establishment.

This bill would prohibit a grocery retail store or a retail drug establishment, as those terms are defined, from providing a self-service checkout option for customers unless specified conditions are satisfied, including having at least one manual checkout station staffed by an employee who is available to any given customer at the time that a self-service checkout option is made available to that customer.

This bill would require a grocery retail store or retail drug establishment that offers self-service checkout to include self-service checkout in the employers illness and prevention program, as required by regulations of the Division of Occupational Safety and Health. The bill also would require a grocery retail store or retail drug establishment that intends to implement self-checkout to notify workers, their collective bargaining representatives, and the public workers and their collective bargaining representatives at least 60 days in advance of the implementation, as specified. The bill would prohibit an employer from taking certain actions against an employee who seeks to remedy violations of these provisions, as specified. The bill would not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers.

This bill would establish remedies and penalties for a violation of the bills provisions, including make an employer who violates the bills provisions subject to a civil penalty of $10,000 for each day in violation, $1,000 per violation per day, not to exceed an aggregate penalty of $200,000.

Existing law imposes certain requirements on grocery employers, as defined, upon the purchase or change in control of a grocery establishment, including requiring a successor grocery employer to retain eligible grocery workers for a specified period after transfer of the grocery establishment.

This bill would prohibit a grocery retail store or a retail drug establishment, as those terms are defined, from providing a self-service checkout option for customers unless specified conditions are satisfied, including having at least one manual checkout station staffed by an employee who is available to any given customer at the time that a self-service checkout option is made available to that customer.

This bill would require a grocery retail store or retail drug establishment that offers self-service checkout to include self-service checkout in the employers illness and prevention program, as required by regulations of the Division of Occupational Safety and Health. The bill also would require a grocery retail store or retail drug establishment that intends to implement self-checkout to notify workers, their collective bargaining representatives, and the public at least 60 days in advance of the implementation, as specified. The bill would prohibit an employer from taking certain actions against an employee who seeks to remedy violations of these provisions, as specified. The bill would not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers.

This bill would establish remedies and penalties for a violation of the bills provisions, including a civil penalty of $10,000 for each day in violation, not to exceed an aggregate penalty of $200,000.

Existing law imposes certain requirements on grocery employers, as defined, upon the purchase or change in control of a grocery establishment, including requiring a successor grocery employer to retain eligible grocery workers for a specified period after transfer of the grocery establishment.

This bill would prohibit a grocery retail store or a retail drug establishment, as those terms are defined, from providing a self-service checkout option for customers unless specified conditions are satisfied, including having at least one manual checkout station staffed by an employee who is available to any given customer at the time that a self-service checkout option is made available to that customer.

This bill would require a grocery retail store or retail drug establishment that offers self-service checkout to include self-service checkout in the employers illness and prevention program, as required by regulations of the Division of Occupational Safety and Health. The bill also would require a grocery retail store or retail drug establishment that intends to implement self-checkout to notify workers, their collective bargaining representatives, and the public at least 60 days in advance of the implementation, as specified.

This bill would establish remedies and penalties for a violation of the bills provisions, including a civil penalty of $10,000 for each day in violation, not to exceed an aggregate penalty of $200,000.

Date of Hearing: July 9, 2025

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Buffy Wicks, Chair

SBPCA Bill Id:SB 442

Author:(Smallwood-Cuevas) – As Amended Ver:April 21, 2025

Urgency: No State Mandated Local Program: No Reimbursable: No

SUMMARY:

This bill prohibits a grocery or drug store (“retail store”) from providing a self-service checkout option for customers unless specified workplace conditions are met.

Specifically, this bill:

1. Prohibits a retail store from providing a self-service checkout option unless certain workplace conditions are met, including adopting a policy and signage to limit self-service purchases to no more than 15 items. An employer is not subject to a penalty if a customer purchases more than 15 items at a self-service checkout station, as long as the employer complies with the related policy and signage requirement. The retail store must also meet specified manual checkout staffing requirements.
2. Requires a retail store that offers self-service checkout to include the practice in the employer’s analysis of potential work hazards under the illness and prevention program (IIP) required by the Division of Occupational Safety and Health (Cal/OSHA).
3. Requires a retail store that intends to implement self-checkout to notify workers and workers’ collective bargaining representatives in writing at least 60 days in advance of implementing the practice.
4. Subjects an employer in violation of these requirements to a civil penalty assessed by the Division of Labor Standards Enforcement (DLSE) of $1,000 per violation, per day, with a maximum aggregate penalty of $200,000. A covered worker or the worker’s representative may file a complaint with DLSE seeking enforcement.
5. Provides that these provisions do not preempt a local ordinance that provides equal or greater protection to covered workers.

FISCAL EFFECT:

Annual costs in the low millions of dollars to the Department of Industrial Relations (which includes Cal/OSHA and DLSE) to provide enforcement and assess civil penalties, likely partially offset by increased penalty revenue (special fund).

COMMENTS:

1. Purpose. According to the author:

A growing body of evidence has shown that rapid automation has contributed to staffing shortages in our grocery and retail stores. While tools like self-checkout are utilized to decrease labor costs, ultimately, it is the worker and consumer who pays the biggest price when our stores are understaffed. Lone clerks are left to serve customers who may need assistance while at the same time watching for shoplifters and dealing with disruptions, making stores even easier targets for theft and violence.

1. Self-service Checkout. AB 183 (Ma), Chapter 726, Statutes of 2011, prohibited the sale of alcohol at any customer-operated checkout stand. Since then, self-checkout stations have become more common across various retail settings. Recently, however, large retailers such as Safeway, Target, and Walmart are removing or imposing item limits at self-checkout stations in light of inventory loss that occurs when checkout is not done by a cashier. This bill prohibits a retail store from providing a self-service checkout option for customers unless certain conditions are met, such as adopting a 15-item limit and operating at least one manual checkout station. A retail store must also notify workers prior to implementing self-checkout and include the practice in the employer’s IIP.
2. Support and Opposition. This bill is co-sponsored by the United Food and Commercial Workers, Western States Council, and California Federation of Labor Unions, with the former arguing this bill “will protect workers and the public by ensuring safe staffing levels at grocery and drug-retail stores and regulating self-checkout machines to prevent retail theft.” This bill is also supported by other labor organizations and social justice groups.

This bill is opposed by various business associations, with the California Grocers Association arguing this bill’s 15-item limit is “arbitrary,” the inclusion of self-checkout stations in an employer’s IIP “implies that the presence of self-checkout stations creates a potential harm to employees,” and explicitly allowing local governments to enact their own self-checkout ordinances is “counterproductive.”

1. Prior Legislation. SB 1446 (Smallwood-Cuevas), of the 2023-24 Legislative Session, was similar to this bill, except SB 1446 would have imposed stricter staffing ratios and regulated other types of consequential workplace technology in retail stores, as well as allowed for public prosecution of violations. SB 1446 was referred to the Assembly Rules Committee without further action.

Analysis Prepared by: Irene Ho / APPR. / (916) 319-2081

Date of Hearing: June 25, 2025

ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT

Liz Ortega, Chair

SBPCA Bill Id:SB 442

Author:(Smallwood-Cuevas) – As Amended Ver:April 21, 2025

SENATE VOTE: 26-10

SUBJECT: Grocery retail store and retail drug establishment employees: self-service checkout

SUMMARY: Prohibits a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless the following requirements are met: having at least one manual checkout station staffed by an employee; limiting self-service checkout to 15 items or less with signage to that effect; and having a policy prohibiting customers from using self-service checkout to purchase certain goods requiring identification or that are subject to theft-deterrence. Specifically, this bill:

1. Makes findings and declarations regarding the harmful effects of self-checkout to grocery workers and the public and its correlation to retail theft.
2. Provides that “grocery retail store” includes both of the following:
   1. “Grocery establishment” means a retail store that is over 15,000 square feet in size and that sells primarily household foodstuffs for offsite consumption, including, but not limited to, fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, with the sale of household supplies or other products being secondary to the primary purpose of food sales.
   2. “Superstore” means a store that is over 75,000 square feet in size, that generates sales or use tax pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law, and that devotes more than 10 percent of sales floor area to the sale of nontaxable merchandise.
3. Defines “retail drug establishment” to mean a person, including an individual, a corporation, a partnership, a limited partnership, a limited liability partnership, a limited liability company, a business trust, an estate, a trust, an association, a joint venture, a proprietorship, a joint venture, an agency, an instrumentality, a corporate officer, an executive, or any other legal or commercial entity, whether domestic or foreign, that has 75 or more businesses or establishments located within the state and is identified as a retail business or establishment in the North American Industry Classification System, as specified.
4. Defines “manual checkout station” to mean a station that is not a self-service checkout station and at which an employee provides human assistance to a customer scanning, bagging, or accepting payment for the customer’s purchases.
5. Defines “self-service checkout” to mean an automated process that enables customers to scan, bag, and pay for their purchases without human assistance. 
6. Prohibits a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless all of the following conditions are satisfied:
   1. At least one manual checkout station is staffed by an employee of the establishment who is available to any given customer at the time that a self-service checkout option is made available to that customer.
   2. The employer has established a workplace policy that limits self-service checkouts to purchases of no more than 15 items.
   3. The establishment has signage within the self-service checkout area indicating the number of items that are permitted through the self-service checkout station.
      1. An employer is not considered in violation of the signage requirement or subject to a penalty under this part if a customer purchases more than 15 items at a self-service checkout station, so long as the employer otherwise complies with the workplace policy and signage requirements.
   4. The employer has established a workforce policy that prohibits customers from using self-service checkout to purchase either of the following:
      1. Items that require customers to provide a form of identification, including, but not limited to, alcohol and tobacco products.
      2. Items subject to special theft-deterrent measures that are affixed to the item, including, but not limited to, electronic article surveillance, ink, or other tags, that require the intervention of an employee of the establishment to remove before purchase.
   5. An employee is not assigned any other duties, including, but not limited to, operating a manual checkout station when monitoring or assisting customers at a self-service checkout station.
7. Requires a grocery retail store or retail drug establishment that offers self-service checkout to include self-service checkout in their analysis of potential work hazards for purposes of their injury and illness prevention programs.
8. Requires, if a grocery retail store or a retail drug establishment intends to implement self-checkout, the grocery retail store or retail drug establishment to, in writing, notify workers and their collective bargaining representatives at least 60 days in advance of the implementation of self-checkout.
   1. The notification shall be communicated to workers through the grocery retail store or retail drug establishment’s normal channels of communication.
9. Requires an employer who violates the above provisions to be subject to a civil penalty to be assessed by the DLSE of one thousand dollars ($1,000) per violation per day, not to exceed an aggregate penalty of two hundred thousand dollars ($200,000).
10. Authorizes a worker eligible to receive notice or representative of a collective bargaining unit to file a complaint with the DLSE seeking enforcement.
11. Provides that the above provisions do not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers who are covered by this part.

EXISTING LAW:

1. Establishes the DLSE within the Department of Indutrial Relations (DIR), to enforce, among other things, wage and hour law, anti-retaliation provisions, and employer notice requirements. Labor Code §79 et seq.
2. Establishes certain worker notice and retention requirements for a grocery employer that is merging or being acquired by another grocery store. Labor Code §2500 et. seq.
3. Requires every employer to establish, implement, and maintain an effective written injury prevention program. Labor Code § 6401.7 et. seq.

FISCAL EFFECT: According to the Senate Appropriations Committee,

• The Department of Industrial Relations (DIR) indicates that it would incur costs in the millions of dollars annually to implement the provisions of the bill (Labor Enforcement and Compliance Fund).
• The bill could result in increased penalty revenue, the annual magnitude of which is unknown.

COMMENTS: This bill is follow-up legislation to SB 1446 (Smallwood-Cuevas) from last year but has been significantly narrowed in scope. SB 1446 looked to regulate workplace technology in the grocery industry more broadly by providing that if an employer intends to implement “consequential workplace technology,” including robotics, sensors, and scanners, the employer must notify the workers, their collective bargaining representatives, and the public at least 60 days in advance of the implementation of the technology with a general description of the technology and its intended purpose.

Recent data on the costs associated with self-checkout reveal that the technology may not achieve the cost savings initially projected by retailers. In 2022, self-checkout accounted for under 30 percent of total transactions, yet self-checkout machines have ironically cost food retailers more than 10 billion in lost profits annually. Utilizing self-checkout machines causes 16 times the inventory loss, presumably in part from retail theft, than checkout with a cashier.^[1] Thus, it’s an open question whether installing self-checkout stations to replace cashier jobs is a net positive for grocery employers.

Some of the biggest retailers like Safeway, Target, and Walmart, are removing self-checkout stations. Dollar General is removing self-checkout entirely from 300 of their stores, in 9,000 other locations converting self-checkout registers to regular cashier checkouts, and at the remaining 4,500 stores limiting self-checkout purchases to five items or less.^[2] Even Lowe’s CEO commented that the way to reduce losses is to remove the self-checkout option and increase staffing levels.^[3] SB 442 would ensure that every retail store has at least one manual staffed check-out station should it opt to add the self-checkout option.

According to the author, “In recent years, as concerns about retail theft and automation have grown, it is crucial we offer solutions that center workers. A growing body of evidence has shown that rapid automation has contributed to staffing shortages in our grocery and retail stores. While tools like self-checkout are utilized to decrease labor costs, ultimately, it is the worker and consumer who pays the biggest price when our stores are understaffed. Lone clerks are left to serve customers who may need assistance while at the same time watching for shoplifters and dealing with disruptions, making stores even easier targets for theft and violence. SB 442 puts workers and the public first by ensuring that customers have access to human assistance when they need it and providing workers with the assurance that they are not alone when working at the front of our grocery and retail stores.”

The author continues, “SB 442 prioritizes workers and ensures their safety and wellbeing come first. Many frontline workers in grocery and retail stores come from minority and low-income communities. Analyses of nearly 44,000 jail bookings between 2020 and 2023 has found that proposals to increase penalties for retail theft disproportionately impact Black and Latinx Californians only furthering the mass incarceration crisis throughout the state. Data shows that the majority of people booked for retail theft in California are largely Black and Latinx. While Black people only make up 7 percent of the population, they make up 22 percent of the share of people booked for retail theft. This is true for shoplifting and organized retail theft.

Furthermore, retail and grocery store workers are largely held by minority or marginalized communities. Protecting frontline retail and grocery jobs, SB 442 ensures that as automation becomes more common in stores throughout the nation, workers remain protected from job loss. These jobs provide crucial sources of incomes to keep a roof over families’ heads, food on the table, and gas in the car.”

Arguments in Support

The United Food and Commercial Workers Western States Council, sponsor of the bill states, “The elimination of worker jobs due to self-checkout has been particularly harmful to workers. The reduction in frontline checkers has caused a crisis with chronic understaffing and an overworked workforce. Self-checkout machines are notoriously glitchy, which creates more work for the reduced workforce and workers are expected to monitor anywhere from four to ten machines on their own.

Fewer workers in the store also increases health and safety risks. Understaffed stores create the opportunity for theft, assault, and violent incidents. Lone frontline clerks must serve customers while at the same time watching for shoplifters and dealing with disruptive individuals. The issues with self-checkout machines and understaffing also increase customer irritation and workers are at risk of verbal and physical assault by frustrated customers. All the while, violence against retail workers is at an all-time high. According to the Occupational Safety and Health Administration (OSHA), workplace violence is the third leading cause of fatal occupational injuries and affects nearly two million workers annually.”

Arguments in Opposition

The California Chamber of Commerce and the California Grocers Association are opposed and state, “SB 442’s 15 item limit is arbitrary and its signage requirement is confusing. SB 442 requires stores to post signage at self-checkout stations stating customers are limited to 15 items at self-checkout. It then states stores are not required to enforce this policy. Companies would be penalized for not having signs that are effectively meaningless. Further, 15 items is a low number compared to industry practice where stores have item limitations and will frustrate customers.

Inclusion of self-checkout in IIPP as a “work hazard”

This bill requires stores with self-checkout stations include an analysis of those stations in their injury and illness prevention programs as a “work hazard”. This implies that the presence of self-checkout stations creates a potential harm to employees. There is no basis for such a conclusion so including this provision will lead employees to believe they are being placed in harm's way while creating an unnecessary administrative burden for stores.”

Prior Legislation

SB 1446 (Smallwood-Cuevas) of 2024 would prohibit a grocery retail store or a retail drug establishment from providing a self-service checkout option for customers unless specified conditions are satisfied, including having no more than 2 self-service checkout stations monitored by any one employee and requiring the employee to be relieved of all other duties. The bill would also require a grocery retail store or retail drug establishment that intends to implement consequential workplace technology to notify workers, their collective bargaining representatives, and the public at least 60 days in advance of the implementation of the technology. The bill died in Assembly Rules.

AB 647 (Holden) Chapter 452, Statutes of 2023 requires an incumbent grocery employer to also provide the list of eligible grocery workers to any collective bargaining representatives, and revises the employee information an incumbent grocery employer is required to provide to the successor grocery employer. The bill also prohibits an employer from taking adverse action against an employee for seeking to enforce their rights. The bill authorizes an employee or employee representative to bring an action in the superior court. The Labor Commissioner may enforce the provisions. The bill would make an employer, as specified, subject to civil penalties and liquidated damages.

REGISTERED SUPPORT / OPPOSITION:

Support

California Conference Board of the Amalgamated Transit Union
California Conference of Machinists
California Federation of Labor Unions, Afl-cio
California National Organization for Women
California State Council of Service Employees International Union (seiu California)
California Teamsters Public Affairs Council
Courage California
Engineers and Scientists of California, Ifpte Local 20, Afl-cio
Prosecutors Alliance
Smart Justice California
Techeqiuty Action
Ufcw - Western States Council
Unite Here International Union, Afl-cio
Utility Workers Union of America

Opposition

California Chamber of Commerce
California Grocers Association
Valley Industry and Commerce Association (VICA)

Oppose Unless Amended

California Retailers Association

Analysis Prepared by: Megan Lane / L. & E. /

1. Hannah Beach, Food Republic, “Why Grocery Stores Can't Stop Self-Checkout Theft,” December 30, 2023. ↑

2. Meyersohn, Nathaniel, “Dollar General is Rolling Back Self-Checkout in Thousands of Stores,” CNN Business, March 14, 2024. ↑

3. Dominick Reuter, Business Insider Netherlands, “Lowe’s CEO says the ‘greatest deterrent’ for retail theft is hiring and training workers,” September 15, 2023.

   ↑

 THIRD READING  

Bill No: SB 442

Author: Smallwood-Cuevas (D), et al.

Amended: 4/21/25

Vote: 21

SENATE LABOR, PUB. EMP. & RET. COMMITTEE: 4-1, 3/26/25

AYES: Smallwood-Cuevas, Cortese, Durazo, Laird

NOES: Strickland

SENATE APPROPRIATIONS COMMITTEE: 5-1, 5/23/25

AYES: Caballero, Cabaldon, Grayson, Richardson, Wahab

NOES: Seyarto

NO VOTE RECORDED: Dahle

SUBJECT: Grocery retail store and retail drug establishment employees: self-service checkout

SOURCE: California Federation of Labor Unions

United Food and Commercial Workers Western States Council

DIGEST:

This bill prohibits a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless specified conditions are met, including, among others, that at least one manual station is staffed by an employee, that self-service checkouts be limited to purchases of 15 or fewer items, and that the sale of certain items like alcohol be prohibited. This bill includes specified civil penalties for violations of these provisions.

ANALYSIS:

Existing law:

1. Establishes the Division of Occupational Safety and Health (Cal/OSHA) within the Department of Industrial Relations (DIR) to, among other things, propose, administer, and enforce occupational safety and health standards. (Labor Code §6300 et seq.)
2. Requires employers to establish, implement, and maintain an effective Injury and Illness Prevention Program (IIPP) that must include, among other things, a system for identifying and evaluating workplace hazards, including scheduled periodic inspections to identify unsafe conditions and work practices and the employer’s methods and procedures for correcting those unsafe or unhealthy conditions and work practices in a timely manner. The IIPP must also include the employer’s system for communicating with employees on occupational health and safety matters. (Labor Code §6401.7)
3. Requires an employer to establish, implement, and maintain an effective Workplace Violence Prevention Plan (WVPP) that is in writing, available, and easily accessible to employees, authorized employee representatives, and representatives of the Division at all times, and be specific to the hazards and corrective measures for each work area and operation. Provides that the WVPP may be incorporated as a stand-alone section in the employer’s existing IIPP or maintained as a separate document. (Labor Code §6401.9)
4. Requires employers to record information in a violent incident log of every workplace violence incident, as specified, and include detailed information regarding the type of attack, weapons used, and consequences including whether or not law enforcement was contacted and their response. (Labor Code §6401.9)
5. Authorizes Cal/OSHA to enforce these provisions by issuing a citation alleging a violation and a notice of civil penalty, as specified, and authorizes any person cited to appeal the citation and penalty to the appeals board in a manner consistent with Labor Code Section 6319. (Labor Code §6401.9)
6. Prohibits a person from discharging or in any manner discriminating or retaliating against any employee because the employee, among other things, reported a work-related fatality, injury, or illness, requested access to occupational injury or illness reports and records, or exercised any other rights protected by the federal Occupational Safety and Health Act (29 United States Code Sec. 651 et seq.), as specified. (Labor Code §6310)
7. Establishes the Division of Labor Standards Enforcment (DLSE), within DIR, to enforce, among other things, wage and hour law, anti-retaliation provisions, and employer notice requirements. (Labor Code §79 et seq.)

This bill:

1. Defines, among others, the following terms:
   1. “Grocery retail store” includes both of the following:
      1. “Grocery establishment” means a retail store in this state that is over 15,000 square feet in size and that sells primarily household foodstuffs for offsite consumption, including, but not limited to, fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, with the sale of household supplies or other products being secondary to the primary purpose of food sales.
      2. “Superstore” means a store in this state that is over 75,000 square feet in size, that generates sales or use tax pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), and that devotes more than 10% of sales floor area to the sale of nontaxable merchandise.
   2. “Manual checkout station” means a station that is not a self-service checkout station and at which an employee provides human assistance to a customer scanning, bagging, or accepting payment for the customer’s purchases.
   3. “Retail drug establishment” means a person, including an individual, a corporation, a partnership, a limited partnership, a limited liability partnership, a limited liability company, a business trust, an estate, a trust, an association, a joint venture, a proprietorship, a joint venture, an agency, an instrumentality, a corporate officer, an executive, or any other legal or commercial entity, whether domestic or foreign, that has 75 or more businesses or establishments located within the state and is identified as a retail business or establishment in the North American Industry Classification System within the retail trade category 45611.
   4. “Self-service checkout” means an automated process that enables customers to scan, bag, and pay for their purchases without human assistance.
2. Prohibits a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless all of the following conditions are satisfied:
   1. At least one manual checkout station is staffed by an employee who is available to any given customer at the time that a self-service checkout option is made available.
   2. The employer has established a workplace policy that limits self-service checkouts to purchases of no more than 15 items with signage requirements to that effect, as specified.
      1. Specifies that an employer is not in violation or subject to a penalty if a customer purchases more than 15 items at a self-service checkout station, so long as the employer otherwise complies with the workplace policy and signage requirements.
   3. The employer has established a workforce policy that prohibits customers from using self-service checkout to purchase either of the following:

Items that require customers to provide a form of identification, including, but not limited to, alcohol and tobacco products.

Items subject to special theft-deterrent measures that are affixed to the item, including, but not limited to, electronic article surveillance, ink, or other tags, that require the intervention of an employee of the establishment to remove before purchase.

• 1. An employee shall not be assigned any other duties, including, but not limited to, operating a manual checkout station when monitoring or assisting customers at a self-checkout station.

1. Requires a grocery retail store or retail drug establishment that offers self-service checkout shall include self-service checkout in their analysis of potential work hazards for purposes of their injury and illness prevention programs, as defined.
2. Requires a grocery retail store or a retail drug establishment that intends to implement self-checkouts to notify workers and their collective bargaining representatives, in writing, at least 60 days in advance of the implementation of self-checkout.
3. Subjects an employer who violates these provisions to a civil penalty, assessed by the Division of Labor Standards Enforcement, of one thousand dollars ($1,000) per violation per day, not to exceed an aggregate penalty of two hundred thousand dollars ($200,000).
4. Authorizes any worker eligible to receive notice pursuant to 4) above, or a representative of a collective bargaining unit, to file a complaint with the DLSE seeking enforcement of these provisions.
5. Provides that the provisions of this bill do not preempt any city, county, or city and county ordinance that provides equal or greater protection to covered workers.
6. Includes findings and declarations relevant to the impacts of self-checkouts on inventory shrink, workers’ job losses and understaffing and declares the need to regulate their use to ensure they don’t increase crime, increase costs that are then passed onto consumers in higher food prices, and increase unemployment or underemployment.

Background

Self-checkout lanes were introduced as a way to cut down on wait times, boost efficiency in stores, and both reduce the need for staff in those lanes or allow for their reassignment to other tasks. Self-checkouts served a critical role during the COVID-19 pandemic and helped address the need to isolate and limit contact with other people to reduce the spread of the virus. With the help of self-checkouts and other models like curbside pick-up, technology has made some aspects of everyday shopping easier. Unfortunately, it also appears to have contributed to retail theft or inventory “shrink” and understaffing, which increases potential for verbal and physical altercations, and the displacement of workers.

Recent news articles have reported many companies moving away from its use. A January 2024 CNN article references a study by Drexel University published in the Journal of Business Research, which found that regular check-out lanes staffed by cashiers made customers more loyal to the store and more likely to revisit in the future as opposed to using self-checkout.^[1] The article further reports that self-checkouts lead to higher merchandise losses from customer errors and more intentional shoplifting than when human cashiers are ringing up customers. According to this article, a study of retailers in the United States, Britain and other European countries found that companies with self-checkout lanes and apps had a loss rate of about 4% - more than double the industry average.^[2]

Several companies, including Target and Walmart, have recently announced changes to their automated register options in stores throughout the country, scaling back on the use of self-checkout and imposing item limits. Some retailers are taking other approaches to try to curb retail theft with the help of technology. For example, Sam’s Club is replacing the practice of having workers verifying receipts as shoppers exit the store with the use of AI powered technology that can visually scan a customer’s cart and verify items are paid.^[3]

As these new technologies are developed, it is imperative that the state provide guidance to employers on how to review and disclose the impacts to workers and consumers.

Need for this bill? According to the author: “While companies proclaim there has been an increase in retail theft, much of the losses they allege can be traced to self-checkout and the reduction in their workforce…Self-checkout and understaffing also create other problems for the public. In a 2024 study, Harvard University Researchers found that 61 percent of workers in stores that utilize self-checkout reported always or often having insufficient staff to get their work done. Customers who are not tech savvy or need human assistance have limited access when there are fewer staffed check stands open. Self-checkout often does not have language options other than English, making them more challenging for speakers of other languages. The overall lack of workers available for customer assistance makes the shopping experience unpleasant and inconvenient. The touted convenience of self-checkout is, in reality, understaffed stores, glitchy machines, and increased retail theft.”

[NOTE: Please see the Senate Labor, Public Employment and Retirement Committee analysis on this bill for more background information.]

Related/Prior Legislation

SB 1446 (Smallwood-Cuevas, 2024) was very similar to this bill but would have additionally required that no more than two self-checkout stations be monitored by any one employee. SB 1446 also required a grocery or retail drug establishment that intended to implement a consequential workplace technology, as defined, must notify workers and the public at least 60 days in advance of the implementation with a general description of the technology and the intended purpose, as specified. SB 1446 also included remedies and penalties for violations, including a civil penalty of $100 for each day in violation, not to exceed an aggregate penalty of $10,000. SB 1446 was held in the Assembly Rules Committee.

FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No

According to the Senate Appropriations Committee

• The Department of Industrial Relations (DIR) indicates that it would incur costs in the millions of dollars annually to implement the provisions of the bill (Labor Enforcement and Compliance Fund).
• The bill could result in increased penalty revenue, the annual magnitude of which is unknown.

SUPPORT: (Verified 5/23/25)

California Federation of Labor Unions, AFL-CIO (Co-source)

United Food and Commercial Workers Western States Council (Co-source)

California Conference of Machinists

California Conference of the Amalgamated Transit Union

California National Organization for Women

California Teamsters Public Affairs Council

Courage California

Engineers and Scientists of CA, IFPTE Local 20, AFL-CIO

Prosecutors Alliance Action

Service Employees International Union California

Smart Justice California

TechEquity Action

UNITE HERE, AFL-CIO

Utility Workers Union of America

OPPOSITION: (Verified 5/23/25)

California Business Properties Association

California Chamber of Commerce

California Grocers Association

Valley Industry and Commerce Association

ARGUMENTS IN SUPPORT:

According to the sponsors:

“The reduction in frontline checkers has caused a crisis with chronic understaffing and an overworked workforce. Self-checkout machines are notoriously glitchy, which creates more work for the reduced workforce and workers are expected to monitor anywhere from four to ten machines on their own.

Fewer workers in the store also increases health and safety risks. Understaffed stores create the opportunity for theft, assault, and violent incidents. Lone frontline clerks must serve customers while at the same time watching for shoplifters and dealing with disruptive individuals. The issues with self-checkout machines and understaffing also increase customer irritation and workers are at risk of verbal and physical assault by frustrated customers. All the while, violence against retail workers is at an all-time high. With understaffing due to self-checkout and employer attempts at cost-savings, grocery and drug stores are now more inconvenient and dangerous places to shop and work.”

ARGUMENTS IN OPPOSITION:

Opponents, including the California Chamber of Commerce, argue that the bill would place arbitrary restrictions on the work performed by employees while undermining the customer experience by reducing the number and types of items that can be taken through self-checkout. Among other things, they argue:

“SB 442 would limit the scope of an employee working at a self-checkout station by requiring they be ‘relieved of all other duties.’ This could create a scenario where the employee staffing a self-checkout station that has no customers in line would be unable to assist a customer who needed help with an item, like a bag of ice. Customers will be frustrated when they ask an employee for help who is otherwise unoccupied and told the employee cannot help because they are staffing an empty self-checkout station. This language should be modified to reflect and accommodate these types of situations that occur in stores every day.

Limiting the number and type of items that can be purchased at self-checkout will be difficult to enforce and will frustrate customers. SB 442 would prohibit items that are subject to theft deterrent measures from being purchased at self-checkout. As any shopper knows, the items that are locked up vary from store to store and can include many essential household products like toothpaste and razor blades. This means that the types of items that can go through self-checkout will vary store to store, increasing customer frustration which will often be directed as store employees and will subject stores to thousands of dollars in penalties. This bill would codify one of the worst situations our employees saw during the pandemic – when they were required to police their customers and enforce the law around masking and social distancing. It did not work then, and it will not work now.”

Prepared by: Alma Perez-Schwab / L., P.E. & R. / (916) 651-1556

5/25/25 17:17:55

**** END ****

1. Meyersohn, N. (January 23, 2024) Customers have soured on self-checkout, and a new study says there’s proof. CNN. https://www.cnn.com/2024/01/23/business/self-checkout-shopping-stores/index.html ↑

2. Ibid. ↑

3. Ibid. ↑

SENATE COMMITTEE ON APPROPRIATIONS

Senator Anna Caballero, Chair

2025 - 2026 Regular Session

SB 442 (Smallwood-Cuevas) - Grocery retail store and retail drug establishment employees: self-service checkout

SB 442 would prohibit a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless specified conditions are met.

Fiscal Impact:

• The Department of Industrial Relations (DIR) indicates that it would incur costs in the millions of dollars annually to implement the provisions of the bill (Labor Enforcement and Compliance Fund).
• The bill could result in increased penalty revenue, the annual magnitude of which is unknown.

Background:

Current law requires employers to have a written Injury and Illness Prevention Program (IIPP). Among other elements, the IIPP must include procedures for identifying and evaluating workplace hazards as well as procedures for correcting them. Employers are also required to periodically review and update the IIPP to account for changing work conditions.

SB 553 (Cortese) was enacted in 2023. This measure additionally required employers to establish, implement, and maintain an effective Workplace Violence Prevention Plan (WVPP) that includes, among other elements, requirements to maintain incident logs, provide specified trainings, and conduct periodic reviews. WVPP requirements specifically focus on injuries that could result from violence experienced while at work. The bill defined “workplace violence” as, among other things, the threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether the employee sustains an injury.

Proposed Law:

This bill, among other things, would do the following:

• Prohibit a grocery retail store or a retail drug establishment, as defined, from providing a self-service checkout option for customers unless specified conditions are satisfied, including having at least one manual checkout station staffed by an employee who is available to any given customer at the time that a self-service checkout option is made available to that customer.
• Require a grocery retail store or retail drug establishment that offers self-service checkout to include self-service checkout in the employer’s IIPP.
• Require a grocery retail store or retail drug establishment that intends to implement self-checkout to notify workers and their collective bargaining representatives at least 60 days in advance of the implementation, as specified.
• Specify that it would not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers.
• Make an employer who violates the bill’s provisions subject to a civil penalty to be assessed by DIR’s Division of Labor Standards Enforcement of $1,000 per violation per day, not to exceed an aggregate penalty of $200,000.

Related Legislation:

• SB 1446 (Smallwood-Cuevas, 2024) was very similar to this bill but would have additionally required that no more than two self-checkout stations be monitored by any one employee. It also included a requirement that a grocery retail store or retail drug establishment that intended to implement a consequential workplace technology, as defined, must notify workers, their collective bargaining representatives, and the public at least 60 days in advance of the implementation of the technology with a general description of the technology and the intended purpose of the technology, as specified. SB 1446 also included remedies and penalties for a violation of the bill’s provisions, including a civil penalty of $100 for each day in violation, not to exceed an aggregate penalty of $10,000. The provisions related to the consequential workplace technology are not included in this year’s version and the penalties for violations have been increased. The bill was held in the Assembly Rules Committee.
• SB 553 (Cortese, Chapter 289, Statutes of 2023) required employers to establish, implement, and maintain an effective workplace violence prevention plan (WVPP) that includes, among other elements, requirements to maintain incident logs, provide specified trainings, and conduct periodic reviews of the plan.
• AB 183 (Ma, Chapter 726, Statutes of 2011) prohibited off-sale licensees from selling alcoholic beverages using a customer-operated checkout stand located on the licensee’s physical premises. This bill makes findings and declarations regarding the negative effects of allowing alcoholic beverages to be sold using self-service checkouts.

-- END --

SENATE COMMITTEE ON LABOR, PUBLIC EMPLOYMENT AND RETIREMENT

Senator Lola Smallwood-Cuevas, Chair

2025 - 2026 Regular

Bill No: SB 442 Hearing Date: March 26, 2025

SUBJECT: Grocery retail store and retail drug establishment employees: self-service checkout

KEY ISSUES

This bill prohibits a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless specified conditions are met, including, among others, that at least one manual station is staffed by an employee, that self-service checkouts be limited to purchases of 15 or fewer items, and that the sale of certain items like alcohol be prohibited. This bill includes specified civil penalties for violations of these provisions and authorizes enforcement by the Division of Labor Standards Enforcement and public prosecutors.

ANALYSIS

Existing law:

1. The California Occupational Safety and Health Act assures safe and healthful working conditions for all California workers by authorizing the enforcement of effective standards, assisting and encouraging employers to maintain safe and healthful working conditions, and by providing for research, information, education, training, and enforcement in the field of occupational safety and health. (Labor Code §6300)
2. Establishes the Division of Occupational Safety and Health (Cal/OSHA) within the Department of Industrial Relations (DIR) to, among other things, propose, administer, and enforce occupational safety and health standards. (Labor Code §6300 et seq.)
3. Requires employers to establish, implement, and maintain an effective Injury and Illness Prevention Program (IIPP) that must include, among other things, a system for identifying and evaluating workplace hazards, including scheduled periodic inspections to identify unsafe conditions and work practices and the employer’s methods and procedures for correcting those unsafe or unhealthy conditions and work practices in a timely manner. The IIPP must also include the employer’s system for communicating with employees on occupational health and safety matters. (Labor Code §6401.7)
4. Requires an employer to establish, implement, and maintain an effective Workplace Violence Prevention Plan (WVPP) that is in writing, available, and easily accessible to employees, authorized employee representatives, and representatives of the Division at all times, and be specific to the hazards and corrective measures for each work area and operation. Provides that the WVPP may be incorporated as a stand-alone section in the employer’s existing IIPP or maintained as a separate document. (Labor Code §6401.9)
5. Requires employers to record information in a violent incident log of every workplace violence incident, as specified, and include detailed information regarding the type of attack, weapons used, and consequences including whether or not law enforcement was contacted and their response. (Labor Code §6401.9)
6. Authorizes Cal/OSHA to enforce these provisions by issuing a citation alleging a violation and a notice of civil penalty, as specified, and authorizes any person cited to appeal the citation and penalty to the appeals board in a manner consistent with Labor Code Section 6319. (Labor Code §6401.9)
7. Prohibits a person from discharging or in any manner discriminating or retaliating against any employee because the employee, among other things, reported a work-related fatality, injury, or illness, requested access to occupational injury or illness reports and records, or exercised any other rights protected by the federal Occupational Safety and Health Act (29 U.S.C. Sec. 651 et seq.), as specified. (Labor Code §6310)
8. Establishes the Division of Labor Standards Enforcment (DLSE), within DIR, to enforce, among other things, wage and hour law, anti-retaliation provisions, and employer notice requirements. (Labor Code §79 et seq.)
9. Establishes grocery worker retention provisions requiring an incumbent (buyer) of an existing grocery establishment to retain employees for a 90-day transition period during which an employee may only be discharged for cause, as specified, and considered for continued employment at the end of the transition period. (Labor Code §2500-2522)
10. Authorizes, until January 1, 2029, a public prosecutor to prosecute an action, either civil or criminal, for a violation of certain provisions of the labor code or to enforce those provisions independently. (Labor Code §181(a) and (e))

This bill:

1. Defines, among others, the following terms:
   1. “Grocery retail store” includes both of the following:
      1. “Grocery establishment” means a retail store in this state that is over 15,000 square feet in size and that sells primarily household foodstuffs for offsite consumption, including, but not limited to, fresh produce, meats, poultry, fish, deli products, dairy products, canned foods, dry foods, beverages, baked foods, or prepared foods, with the sale of household supplies or other products being secondary to the primary purpose of food sales.
      2. “Superstore” means a store in this state that is over 75,000 square feet in size, that generates sales or use tax pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200) of Division 2 of the Revenue and Taxation Code), and that devotes more than 10 percent of sales floor area to the sale of nontaxable merchandise.
   2. “Manual checkout station” means a station that is not a self-service checkout station and at which an employee provides human assistance to a customer scanning, bagging, or accepting payment for the customer’s purchases.
   3. “Retail drug establishment” means a person, including an individual, a corporation, a partnership, a limited partnership, a limited liability partnership, a limited liability company, a business trust, an estate, a trust, an association, a joint venture, a proprietorship, a joint venture, an agency, an instrumentality, a corporate officer, an executive, or any other legal or commercial entity, whether domestic or foreign, that has 75 or more businesses or establishments located within the state and is identified as a retail business or establishment in the North American Industry Classification System within the retail trade category 45611.
   4. “Self-service checkout” means an automated process that enables customers to scan, bag, and pay for their purchases without human assistance.
2. Prohibits a grocery retail store or retail drug establishment from providing a self-service checkout option for customers unless all of the following conditions are satisfied:
   1. At least one manual checkout station is staffed by an employee who is available to any given customer at the time that a self-service checkout option is made available.
   2. The employer has established a workplace policy that limits self-service checkouts to purchases of no more than 15 items with signage requirements to that effect, as specified.
      1. Specifies that an employer is not in violation if a customer purchases more than 15 items at a self-service checkout station, so long as the employer otherwise complies with the workplace policy and signage requirements.
   3. The employer has established a workforce policy that prohibits customers from using self-service checkout to purchase either of the following:

Items that require customers to provide a form of identification, including, but not limited to, alcohol and tobacco products.

Items subject to special theft-deterrent measures, including, but not limited to, locked cabinets and electronic article surveillance tags, that require the intervention of an employee of the establishment for the customer to access or purchase the item.

• 1. An employee shall be relieved from all other duties when monitoring a self-service checkout station, including, but not limited to, operating a manual checkout station.

1. Requires a grocery retail store or retail drug establishment that offers self-service checkout shall include self-service checkout in their analysis of potential work hazards for purposes of their injury and illness prevention programs, as defined.
2. Requires a grocery retail store or a retail drug establishment that intends to implement self-checkouts to:
   1. Notify workers and their collective bargaining representatives, in writing, at least 60 days in advance of the implementation of self-checkout.
   2. Notify the public of its intent at least 60 days in advance of the implementation by posting the notice in a location accessible to the grocery retail store’s or retail drug establishment’s employees and customers.
3. Subjects an employer who violates these provisions to a civil penalty of ten thousand dollars ($10,000) for each day in violation, not to exceed an aggregate penalty of two hundred thousand dollars ($200,000).
4. Authorizes any worker eligible to receive notice pursuant to 4) above, or a representative of a collective bargaining unit, to seek enforcement of these provisions and a prevailing plaintiff shall be awarded an award of their reasonable attorney’s fees and costs.
5. Requires the Division of Labor Standards Enforcement, upon the filing of a complaint by an employee, to enforce these provisions including by investigating an alleged violation, and ordering appropriate relief.
6. Authorizes, in addition to other remedies as may be provided by the laws of this state or its subdivisions, any public prosecutor, as defined, to institute an action for a violation of these provisions, including an action seeking injunctive relief.
7. Includes findings and declarations relevant to the impacts of self-checkouts on inventory shrink, workers’ job losses and understaffing and declares the need to regulate their use to ensure they don’t increase crime, increase costs that are then passed onto consumers in higher food prices, and increase unemployment or underemployment.

COMMENTS

1. Background

Existing Employer Obligations:

In California, every employer has a legal obligation to provide and maintain a safe and healthful workplace for their employees. Employers must have a written Injury and Illness Prevention Program (IIPP) that is developed and implemented effectively with emphasis on staff safety and health. Among other elements, the IIPP must include procedures for identifying and evaluating workplace hazards as well as procedures for correcting them. Employers are also required to periodically review and update the IIPP to account for changing work conditions.

In 2023, SB 553 (Cortese) was chaptered, which additionally required employers to establish, implement, and maintain an effective Workplace Violence Prevention Plan (WVPP) that includes, among other elements, requirements to maintain incident logs, provide specified trainings, and conduct periodic reviews. WVPP requirements specifically focus on injuries that could result from violence experienced while at work. The bill defined “workplace violence” as, among other things, the threat or use of physical force against an employee that results in, or has a high likelihood of resulting in, injury, psychological trauma, or stress, regardless of whether the employee sustains an injury.

Technology and its Impact on Employment:

With technological advancements happening faster than humans can react, we often miss the opportunities to evaluate its impact. Until recently, advancements in technology often automated physical tasks, such as those performed on factory floors or self-checkouts, but artificial intelligence (AI) functions more like human brainpower. As this technology develops, so do fears of worker displacement in more areas and industries. According to the Pew Research Center, in 2022, 19 percent of American workers were in jobs that are the most exposed to AI, in which the most important activities may be either replaced or assisted by AI.^[1] Because technology can be used to either replace or complement the work of employees, it is difficult to identify which industries or occupations will be most impacted.

Self-Checkouts and Retail Theft:

Self-checkout lanes were introduced as a way to cut down on wait times, boost efficiency in stores, and both reduce the need for staff in those lanes or allow for their reassignment to other tasks. Self-checkouts served a critical role during the COVID-19 pandemic and helped address the need to isolate and limit contact with other people to reduce the spread of the virus. With the help of self-checkouts and other models like curbside pick-up, technology has made some aspects of everyday shopping easier. Unfortunately, it also appears to have contributed to retail theft or inventory “shrink” and understaffing, which increases potential for verbal and physical altercations, and the displacement of workers.

Recent news articles have reported many companies moving away from its use. A January 2024 CNN article references a study by Drexel University published in the Journal of Business Research, which found that regular check-out lanes staffed by cashiers made customers more loyal to the store and more likely to revisit in the future as opposed to using self-checkout.^[2] The article further reports that self-checkouts lead to higher merchandise losses from customer errors and more intentional shoplifting than when human cashiers are ringing up customers. According to this article, a study of retailers in the United States, Britain and other European countries found that companies with self-checkout lanes and apps had a loss rate of about 4 percent - more than double the industry average.^[3]

Several companies, including Target and Walmart, have recently announced changes to their automated register options in stores throughout the country, scaling back on the use of self-checkout and imposing item limits. Target, for example, is restricting self-checkout to customers buying 10 items or less and directing larger item purchases to full service lanes with cashiers. Target has cited the impetus as customer feedback and a desire to provide a better shopping experience.^[4] Dollar General is another retailer scaling back on self-checkouts, reporting that in 9,000 of its stores the company will be converting some or all of the self-checkout registers to assisted-checkout options.^[5]

Some retailers are taking other approaches to try to curb retail theft with the help of technology. For example, Sam’s Club is replacing the practice of having workers verifying receipts as shoppers exit the store with the use of AI powered technology that can visually scan a customer’s cart and verify items are paid.^[6]

As these new technologies are developed, it is imperative that the state provide guidance to employers on how to review and disclose the impacts to workers and consumers.

2. Need for this bill?

According to the author:

“Self-checkout has rapidly spread in retail grocery and drug stores to drastically cut staffing and reduce labor costs. Self-checkout and the reduction in front-line grocery workers have created a range of problems for retailers, workers, and the public.

While companies proclaim there has been an increase in retail theft, much of the losses they allege can be traced to self-checkout and the reduction in their workforce. Data shows that self-checkout machines cause 16 times more shrink than checkout via a cashier.^[7] In 2022, self-checkout accounted for under 30% of total transactions, yet self-checkout machines have cost food retailers more than $10 billion in lost profits annually. Nearly 7% of self-checkout transactions had at least some partial shrink compared to 0.32% with cashiers. On a revenue basis, this suggests a shrink rate of 3.5% for self-checkout machines versus only 0.21% for full-service cashier stations staffed by an employee.^[8]

Self-checkout and understaffing also create other problems for the public. In a 2024 study, Harvard University Researchers found that 61 percent of workers in stores that utilize self-checkout reported always or often having insufficient staff to get their work done.^[9] Customers who are not tech savvy or need human assistance have limited access when there are fewer staffed check stands open. Self-checkout often does not have language options other than English, making them more challenging for speakers of other languages. The overall lack of workers available for customer assistance makes the shopping experience unpleasant and inconvenient. The touted convenience of self-checkout is, in reality, understaffed stores, glitchy machines, and increased retail theft.”

The author concludes by stating that, “while some stores have begun to take steps to address these challenges, it is crucial the state establish baseline guidance for retailers that choose to deploy self-checkout in their stores.”

3. Proponent Arguments:

According to the sponsors, the California Federation of Labor Unions and the United Food and Commercial Workers:

“Retailers have increasingly implemented automated checkout to drastically cut staffing and reduce labor costs. Self-checkout and the reduction in frontline grocery workers have created a range of problems for retailers, workers, and the public. Evidence increasingly shows that self-checkout increases retail theft and ‘shrink’ at stores, also creating potential for verbal and physical abuse of workers and security who try to prevent theft in the stores.

The elimination of workers’ jobs due to self-checkout is especially harmful. The reduction in frontline checkers has caused a crisis with chronic understaffing and an overworked workforce. Self-checkout machines are notoriously glitchy, which creates more work for the reduced workforce and workers are expected to monitor anywhere from four to ten machines on their own.

Fewer workers in the store also increases health and safety risks. Understaffed stores create the opportunity for theft, assault, and violent incidents. Lone frontline clerks must serve customers while at the same time watching for shoplifters and dealing with disruptive individuals. The issues with self-checkout machines and understaffing also increase customer irritation and workers are at risk of verbal and physical assault by frustrated customers. All the while, violence against retail workers is at an all-time high.

With understaffing due to self-checkout and employer attempts at cost-savings, grocery and drug stores are now more inconvenient and dangerous places to shop and work. In addition, retailers have used the threat of theft caused by understaffing as an excuse to lock up products, creating more work and further frustrating customers. The types of products that are locked up, and in which stores, also indicate racial bias, rightfully angering customers who see that stores are unfairly targeting them.”

Furthermore, they argue that:

“In recognition of the problem, companies like Walmart, Target, Dollar General, and other major grocery stores are moving away from self-checkout as the losses from retail theft hit their bottom line. Lowe’s CEO has come out and said that the way to reduce losses, now the industry norm, is to remove self-checkout and increase staffing in the stores, not just at checkout but in every department. Best Buy, touted as a success story in reducing retail theft and shrink, shared they have employed asset-protection employees at its front doors, have more floor coverage, meaning more employees present on the sales floor, than other retailers, have invested in more employees in their stores, and have less self-checkout in their stores.

SB 442 ensures that technology in retail grocery and drug stores improves the customer experience and ensures job quality and security for workers.”

6. Opponent Arguments:

The California Chamber of Commerce and California Grocers Association are opposed to the measure arguing that the bill would place arbitrary restrictions on the work performed by employees while undermining the customer experience by reducing the number and types of items that can be taken through self-checkout. They argue:

“SB 442 would limit the scope of an employee working at a self-checkout station by requiring they be ‘relieved of all other duties.’ This could create a scenario where the employee staffing a self-checkout station that has no customers in line would be unable to assist a customer who needed help with an item, like a bag of ice. Customers will be frustrated when they ask an employee for help who is otherwise unoccupied and told the employee cannot help because they are staffing an empty self-checkout station. This language should be modified to reflect and accommodate these types of situations that occur in stores every day.

Limiting the number and type of items that can be purchased at self-checkout will be difficult to enforce and will frustrate customers. SB 442 would prohibit items that are subject to theft deterrent measures from being purchased at self-checkout. As any shopper knows, the items that are locked up vary from store to store and can include many essential household products like toothpaste and razor blades. This means that the types of items that can go through self-checkout will vary store to store, increasing customer frustration which will often be directed as store employees and will subject stores to thousands of dollars in penalties. This bill would codify one of the worst situations our employees saw during the pandemic – when they were required to police their customers and enforce the law around masking and social distancing. It did not work then, and it will not work now.

SB 442 requires stores to post signage at self-checkout stations stating customers are limited to 15 items at self-checkout. It then states stores are not required to enforce this policy. Companies would be penalized for not having signs that are effectively meaningless. Further, 15 items is a low number compared to industry practice where stores have item limitations and will frustrate customers.

This bill requires stores with self-checkout stations include an analysis of those stations in their workplace violence programs. This implies that the presence of self-checkout stations creates a potential harm to employees. There is no basis for such a conclusion so including this provision will lead employees to believe they are being placed in harm's way while creating an unnecessary administrative burden for stores.”

7. Amendments in Committee:

Due to the bill’s 30 day in print date of March 21, the author has been unable to amend the bill prior to this hearing. The author would like to amend the bill today to add worker anti- retaliation protections language as well as language specifying that these provisions do not preempt any city or county ordinance that provides equal or greater protections to workers.

Amendments to add:

2533. d) An employer shall not discharge, threaten to discharge, demote, suspend, retaliate against or in any manner discriminate against a worker filing a complaint with the Labor Commissioner alleging a violation of this part, cooperating in an investigation of an alleged violation of this part, or opposing any policy or practice that is prohibited by this part.

2534. This part does not preempt any city, county, or city and county ordinance that provides equal or greater protection to workers who are covered by this part.

8. Double Referral:

This bill has been double referred and if approved by this Committee today, will be sent to Senate Judiciary Committee for a hearing.

9. Prior Legislation:

SB 1446 (Smallwood-Cuevas, 2024) was very similar to this bill but would have additionally required that no more than two self-checkout stations be monitored by any one employee. SB 1446 also included a requirement that a grocery retail store or retail drug establishment that intended to implement a consequential workplace technology, as defined, must notify workers, their collective bargaining representatives, and the public at least 60 days in advance of the implementation of the technology with a general description of the technology and the intended purpose of the technology, as specified. SB 1446 also included remedies and penalties for a violation of the bill’s provisions, including a civil penalty of $100 for each day in violation, not to exceed an aggregate penalty of $10,000. The provisions related to the consequential workplace technology are not included in this year’s version and the penalties for violations have been increased. SB 1446 was held in the Assembly Rules Committee.

SB 553 (Cortese, Chapter 289, Statutes of 2023) required employers to establish, implement, and maintain an effective workplace violence prevention plan (WVPP) that includes, among other elements, requirements to maintain incident logs, provide specified trainings, and conduct periodic reviews of the plan.

AB 183 (Ma, Chapter 726, Statutes of 2011) prohibited off-sale licensees from selling alcoholic beverages using a customer-operated checkout stand located on the licensee’s physical premises. This bill makes findings and declarations regarding the negative effects of allowing alcoholic beverages to be sold using self-service checkouts.

SUPPORT

California Federation of Labor Unions, AFL-CIO (Co-sponsors)

United Food and Commercial Workers Western States Council (Co-sponsors)

California National Organization for Women
Courage California
Prosecutors Alliance Action
Smart Justice California
TechEquity Action

OPPOSITION

California Chamber of Commerce

California Grocers Association

Valley Industry and Commerce Association

-- END --

1. “Which U.S. Workers Are More Exposed to AI on Their Jobs?” Pew Research Center, Washington, D.C. (July 26, 2023) https://www.pewresearch.org/social-trends/2023/07/26/which-u-s-workers-are-more-exposed-to-ai-on-their-jobs/ ↑

2. Meyersohn, N. (January 23, 2024) Customers have soured on self-checkout, and a new study says there’s proof. CNN. https://www.cnn.com/2024/01/23/business/self-checkout-shopping-stores/index.html ↑

3. Ibid. ↑

4. Meyersohn, N. (November 18, 2023) Target is testing a new self-checkout policy. CNN. https://www.cnn.com/2023/11/18/business/target-self-checkout-new-system/index.html ↑

5. PYMTS. (March 21, 2024) Retailers’ Self-Checkout Enthusiasm Dwindles Amid Elevated Theft. PYMTS. https://www.pymnts.com/news/retail/2024/retailers-self-checkout-enthusiasm-dwindles-amid-elevated-theft/ ↑

6. Ibid. ↑

7. https://www.foodrepublic.com/1476050/grocery-store-cant-stop-self-checkout-theft/ ↑

8. https://www.cspdailynews.com/technologyservices/theft-self-checkout-amounts-35-sales-report ↑

9. Please Wait, Help is on the Way: Self-Checkout, Understaffing, and Customer Incivility in the Service Sector - The Shift Project ↑