Sacramento—A Historic Fine for Worker Recall Law Breaches
The Maybourne Beverly Hills, a renowned luxury resort, faces a $4.4 million penalty from the California Labor Commissioner’s Office (LCO) for violating the state’s Worker Recall Law. This law requires hospitality employers to prioritize rehiring employees laid off during the COVID-19 pandemic. The Department of Industrial Relations (DIR) confirmed that the hotel failed to offer available positions to eligible displaced workers, significantly affecting long-serving staff members.
Investigation Uncovers Widespread Violations
An investigation launched in November 2022 revealed multiple infractions of the Worker Recall Law. The Maybourne Beverly Hills rehired new employees instead of prioritizing longstanding staff members, some of whom had over a decade of service. The violations, uncovered after complaints surfaced, led to damages and interest totaling $4,425,419 for 12 employees.
When the hotel reopened in 2021, it bypassed laid-off workers, filling positions with newly hired staff. This action directly violated California’s Worker Recall Statute (Labor Code Section 2810.8), which mandates that hospitality employers offer roles to former employees based on seniority before hiring externally or using staffing agencies.
Labor Commissioner’s Statement
Labor Commissioner Lilia García-Brower criticized the luxury resort’s actions, stating:
“It’s unacceptable for a business, especially an opulent luxury resort like the Maybourne Beverly Hills, which has benefited from loyal hardworking employees, to disregard the Worker Recall Law and deny long-serving workers their rightful opportunity to return to their jobs.”
Background on the Worker Recall Law
California’s Worker Recall Law, established under SB 93, took effect in April 2021. It was the first law of its kind in the United States to protect displaced workers in the hospitality and service sectors. The legislation requires employers to prioritize rehiring laid-off workers based on seniority. It applies to roles including housekeepers, banquet servers, cooks, janitors, and event staff. This protection remains effective through December 31, 2025.
The Role of the Labor Commissioner’s Office
The Labor Commissioner’s Office, part of the DIR, investigates wage theft and unfair competition while enforcing worker protections. Through campaigns like “Reaching Every Californian,” the office educates workers and employers on their rights and responsibilities under laws such as the Worker Recall Law.
A Strong Message to Employers
The $4.4 million fine sends a clear signal to the hospitality industry. Businesses must comply with the Law and honor their commitments to long-serving employees. This case underscores the importance of adhering to labor protections designed to support workers during challenging times.
For more details, visit the California Department of Industrial Relations.
Read more industry-related news on MedLegalNews.com.
