Can the city government tell employers they have to hire a certain percentage of employees from a certain city?

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Can the city government tell employers they have to hire a certain percentage of employees from a certain city?

The city I live in in California made a rule that tells small businesses in a
certain field that they have to hire 20 percent of their workers from the city
that the businesses are based out of. Can they legally do that? Thanks in
advance for your help.

Asked on April 11, 2018 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, they can do this. An employer (public or private) may set any criteria for employment that it wishes so long as those criteria are not specifially barred or prohibited by the anti-discrimination laws (e.g. no not hiring due to race, sex or religion). There are no laws prohibiting "discrimination" based on city of residence. Therefore, a municipality can require small businesses that it has some influence or say over (like those requiring a certain license, or those doing business with the city) to hire a percentage of employees from the city itself.


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