Hiring and firing

AB 858: Rehiring and Retention of Displaced Workers

AB 858 extends the sunset date for COVID-19-related employee recall and reinstatement rights to 1 January 2027.

Background

In 2021, California Labor Code Section 2810.8 was enacted to protect employees in the hospitality and business services industry (including, but not limited to, hotels, event centers, and employers that provide maintenance services) who were laid off due to COVID-19. Under the law, covered employers must:

1. Offer available positions in writing to qualified employees who:
   1. Worked for the employer for six months or more in the 12 months preceding 1 January 2020; and
   2. Were laid off “due to a reason related to the COVID-19 pandemic.”
2. Prohibit retaliation or adverse action against employees asserting their rights under these provisions.

Section 2810.8 was originally set to expire on 31 December 2024.

In 2023, SB 723 broadened eligibility by extending recall rights to any employee:

1. Who was employed by the employer for six months or more;
2. Whose most recent separation from active employment by the employer occurred on or after 4 March 2020; and
3. Whose separation was due to a reason related to the COVID-19 pandemic.

SB 723 also created a presumption that a separation due to a lack of business, reduction in force, or other economic, non-disciplinary reason is related to the COVID-19 pandemic unless the employer establishes otherwise by a preponderance of the evidence. SB 723 extended...

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