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The Labor Commissioner cited a California hotel for violating California’s Right to Recall law after it failed to offer positions to 53 individuals who had been laid off during the COVID-19 pandemic.

The Right to Recall law, which went into effect on April 16, 2021, requires certain employers to first offer to qualified employees an available job position in writing within five business days of establishing the job position if those qualified employees were laid off due to specific COVID-19 reasons. Qualified employees who are not offered an available position in accordance with the law may be entitled to specified relief, including hiring and reinstatement rights, front pay, back pay, as well as civil penalties, liquidated damages, and “interest on all amounts due and unpaid” at a rate of 10 percent.

Covered workers include employees at hotels or private clubs with 50 or more guest rooms, airports, airport service providers, and event centers. Also included are laid-off employees of retail and commercial buildings engaged in building services such as janitorial, maintenance, and security services. The law entitles former employees to $500 per day in liquidated damages for each day a position was open but not offered to the former employee, plus interest and penalties.

The Labor Commissioner began investigating the hotel in July 2021 after receiving reports on behalf of 14 former employees from the labor organization Unite Here Local 11. On March 2, 2022, the Labor Commissioner determined that the hotel had violated the Right to Recall law and ordered it to pay $3,080,000 in liquidated damages, $5,300 in civil penalties, and $208,582 in assessed interest for a total of $3,293,882.

The Labor Commissioner also issued a “Notice to Discontinue Labor Violations,” directing the hotel to offer available positions to former employees who should have been offered work. Given the significant penalties associated with violating the Right to Recall law, covered employers should ensure they understand the law’s requirements and work with legal counsel to ensure compliance. Employers Council members can reach out to our California Legal Services team at CAInfo@employerscouncil.org for assistance with any questions about the Right to Recall law.