Case highlights the ‘Right to Recall’ law for laid-off workers during COVID-19 pandemic
The California Labor Commissioner has cited an employer with $3.3 million after it failed to offer and secure jobs to the employees it had laid off during the COVID-19 pandemic, as mandated by law.
Terranea Resort in Rancho Palos Verdes, CA didn’t offer positions to 53 of its former employees, including housepersons, banquet servers, bartenders, junior sous chefs and massage therapists, according to the Labor Commissioner’s Office (LCO).
Last year, an investigation was launched by the LCO after receiving reports of labor law violations on behalf of some of its laid-off workers. The latter claimed that “they were not offered an opportunity to return to their jobs based on seniority when the hotel increased business operations in 2021.” The investigation tapped into interviews with former and current staff, depositions from the resort’s HR managers and an extensive audit of payroll records.
The investigation’s findings led to LCO holding the resort’s management in violation of the “Right to Recall” law, with authorities charging the hotel $3,080,000 in liquidated damages, $5,300 in civil penalties and $208,582 in assessed interest for a total of $3,293,882.
Aside from the liquidated damages payable to the employees and civil penalties payable to the state, the employer also faced a Notice to Discontinue Labor Violations, which directs it to offer positions to employees who should have...
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