California Labor Commission Pays $1.52 Million to Resort Workers Whose Rights Were Violated

The California Labor Commission had to dust off its checkbook recently to write a check for a cool $1.52 million to compensate workers at Terranea Resort in Palos Verdes, CA, for labor rights violations that they experienced. The damages went to 57 workers in various areas of the resort, such as bartending, banquet staff, junior sous chefs, and housekeeping, who were laid off during the pandemic.  

What Did the Resort Do Wrong?

Under California Labor Code Sec. 20810.8, employees laid off due to the COVID-19 pandemic have “recall rights.” The Right to Recall Law was created in April 2021 and will remain in effect until the end of December 2024. This law requires that employees who were laid off as a result of the pandemic should be recalled to service as soon as their employer once again reopens or has a need for their services. Staff have the right to refuse being recalled if they have found other employment in the meantime, but they should still have the right of first refusal. 

By law, the employer has a period of five days from the time they reopen to reach out to any personnel who were laid off and offer them their position back. The staff then have five days to accept or refuse the offer. The business may only hire new personnel if all previous personnel refuse the offer to accept the position they are trying to fill. If multiple previous employees accept the same position, the company may give the position to the prior employee with the greatest amount of seniority. 

It should also be noted that seniority is based on the total amount of time that the employee worked at the business, as opposed to which employee held the highest position in the company hierarchy prior to the layoffs. 

However, when Terranea Resort reopened in 2021, employees were left waiting. Many employees had been applying to jobs and seeking work for the entire time that they were laid off, and breathed a sigh of relief when they heard that the resort would be reopening, since it meant they would get their jobs back soon. However, these employees were left hanging. Terranea failed to recall all of their laid-off staff, and did not follow the Right to Recall Law’s proper protocols by offering positions to prior laid-off employees before they sought to hire new employees. This failure to adhere to the Right to Recall Law cost them a fine of over $1 million, and acts as a reminder to countless other California businesses that they must familiarize themselves with the compliance requirements for all employment laws that were enacted during and as a result of the pandemic. Many of these businesses received aid and support as a result of these laws, so it is unfair to now discard them. The laws work both ways. 

Contact a California Employment Lawyer Today 

If you want to make sure that your business is compliant with all current laws and statutes, or if you are an employee whose rights have been violated, our California employment attorneys can help. Contact us today to schedule a consultation.