San Francisco could limit the number of self-checkout machines grocery and drug stores can operate without a human cashier operating too, according to an ordinance proposed by Board of Supervisors President Rafael Mandelman.

The ordinance introduced Tuesday by Mandelman at the Board’s regular meeting would require one human cashier for every three self-checkout kiosks or machines operating in a store.

Mandelman said the legislation was needed to head off the effects of technology automating certain jobs and to reduce theft, which studies have shown increases when self-checkouts are present instead of staffed cash registers.

“San Francisco leads the world in the development and deployment of new technology, and as we transition to an increasingly tech-reliant economy, we should be just as committed to ensuring working people have a place in that future,” he said.

Mandelman cited a 2023 study from the former tech startup Grabango that estimated losses from theft at self-checkout lanes reached about 3.5% of overall sales at the register, compared to about 0.12% in a checkout lane staffed by a human employee.

Mandelman said the increased risk of theft created by the machines was a threat to the physical and psychological well-being of employees.

Proposed rules target theft, jobs

A study from the Shift Project, a joint labor research study from the University of California, San Francisco, and the Malcolm Wiener Center for Social Policy at the Harvard Kennedy School, showed that employees at stores with self-checkout stations also face increased disrespect from customers and understaffing by managers, both of which got worse when more stations were introduced.

The 2024 study also noted that, though self-checkouts were introduced in 1986, their use grew dramatically during the COVID-19 pandemic in 2020.

The ordinance would apply to grocery stores over 10,000 square feet and drug stores of any size.

The legislation was supported by the United Food and Commercial Workers International Union Local 5 and is co-sponsored by Supervisors Connie Chan, Jackie Fielder, Stephen Sherrill and Shamann Walton.

The ratio of one human cashier to every three self-checkout kiosks means that up to five self-checkouts could be open at any time with only one cashier on duty, according to the draft ordinance.

Employees could file civil lawsuits against businesses that violate the law, which could result in financial penalties for owners, including compensation for employees and a fine of up to $10,000.