The California Supreme Court reversed a decision of the court of appeal. The court held that a local ordinance that obligated the new owner of any large grocery store to employ the prior owner’s workforce for three months from the date of takeover was not preempted by state or federal law and did not violate equal protection.

The California Grocers Association, a trade association of grocery store operators and suppliers, brought an action challenging an ordinance enacted by the City of Los Angeles. The ordinance required purchasers of large grocery stores to employ the prior owner’s workforce for 90 days.