Since 2021, California has required certain hospitality and business services industries to give rehiring preference to workers laid off because of the pandemic.  See Comeback Trail: Hotels, Security Services and Others Must Offer Openings to Pandemic-Affected Former Staff (April 30, 2021).

SB 723 extends this requirement through 2025.  Covered employers must offer vacant positions to anyone employed for at least six months who was laid off on or after March 4, 2020 for a pandemic-related reason.

Covered industries include hotels; private clubs; event centers; airport-related hospitality operations and service providers; and janitorial, building maintenance or security services provided to office, retail or other commercial buildings. This law also applies where businesses have changed hands, relocated, or changed form.

Such employers must send a job offer to qualified former employees within five business days after establishing a position and allow at least five business days for a response.  Certain seniority rules apply if more than one worker responds. Covered employers must also keep records for three years for each laid-off employee and must notify such employees within 30 days, in writing, if they hire someone else and the reason.

The Labor Commissioner may seek fines of $100 plus $500 liquidated damages that go to the employee for each day a violation of the law continues.

Take Aways:

Employers in the covered industries need to become familiar with SB 723 and follow its requirements.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Find Out What’s New in 2024 – Annual Seminar for Employers Covering Employment Legal Essentials and New Workplace Laws (October 20, 2023)
• What’s New in 2024 – Expanded Paid Sick Leave Requirements – California Employers Must Now Provide 40 hours or Five Days of Sick Pay (October 11, 2023)
• Former Workers Get First Shot: 3.3 Million Reasons to Hire Back Pre-Pandemic Hospitality Employees (March 11, 2022)

Helena Kobrin
November 10, 2023