Last week, California’s labor commissioner cited Terranea Resort in Rancho Palos Verdes $3.3 million after failing to offer 53 former employees the opportunity to return to their jobs before hiring new candidates. Terranea’s former food servers, bartenders, sous chefs, and housekeepers, and others initially lost their jobs due to the COVID-19 pandemic.
Like most hotels throughout California, Terranea temporarily closed in March 2020 and eliminated much of its workforce. But management failed to rehire those workers first when reopening in mid-2021, a requirement by California law. In May 2021, California Gov. Gavin Newsom signed Senate Bill 93 or right to recall law, which guaranteed laid-off hospitality workers including housekeepers, cooks, waiters and bartenders an opportunity to return to their jobs. This right to recall is extended through December 31, 2024.
The state launched an investigation after local hospitality labor union Unite Here Local 11 filed the complaint on behalf of Terranea employees, who allege they were not given the chance to return to their jobs when business increased at Terranea in 2021. Interviews with former and current Terranea employees, human resource managers, and a payroll record audit determined that DH Long Point Management, LLC, the company that owns Terranea Resort, violated SB 93.
For each employee, SB 93 entitles them to liquidated damages of $500 per day until the rehiring violation is restored, and $100 in civil penalties for each...
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