The city says it's the first in the country to adopt such a rule for the farmworker community.
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The emergency ordinance, which was approved Wednesday night, impacts certain agriculture operations, grocery stores, pharmacies and restaurants in Coachella.
The rule requires the businesses to provide an extra $4 an hour to employees for at least 120 days.
MORE: Organization working to vaccinate more Latino farmworkers in CA
Organization working to vaccinate more Latinos in Valley agriculture
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WATCH | How the agriculture industry is dealing with COVID-19
How the agriculture industry is dealing with COVID-19