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Warning: Hospitality and Service industries in California should look out for COVID-19 Re-Hire Rights

21 Nov

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Update Applicable to:

All covered employers and multi-state businesses that are classified as hospitality and service industries in California.

What happened?

On October 10, 2023, Governor Newsom signed Senate Bill (SB) 723, which moves the expiration date of signed Senate Bill (SB) 93 of the recall rights for employees in the hospitality and service industry in 2021, from December 31, 2024, to December 31, 2025

What are the details?

SB 723 extends the life period of SB 93 until December 31, 2025.

SB 93 required employers in hospitality and service industries to rehire employees laid off due to the COVID-19 pandemic. The industries mandated to re-hire employees are the following:

  • Hotels
  • Private clubs
  • Event centers
  • Airport hospitality operations
  • Airport service providers
  • Building services to office, retail, or other commercial buildings

SB 723 extends the life period of SB 93 until December 31, 2025, redefines “laid-off employee (93 Vs 723)” and creates a presumption of separation.

SB 93SB 723
Definition
(10) “Laid-off employee” means any employee who was employed by the employer for 6 months or more in the 12 months preceding January 1, 2020, and whose most recent separation from active service was due to a reason related to the COVID-19 pandemic, including a public health directive, government shutdown order, lack of business, a reduction in force, or other economic, non-disciplinary reason due to the COVID-19 pandemic.(10) “Laid-off employee” means any employee who was employed by the employer for 6 months or more and whose most recent separation from active employment by the employer occurred on or after March 4, 2020, and was due to a reason related to the COVID-19 pandemic, including a public health directive, government shutdown order, lack of business, a reduction in force, or other economic, non-disciplinary reason due to the COVID-19 pandemic.
  Amendments to existing law are underlined in the above table.  

Best practices

  • Employers within the hospitality and service industries in California will not need to make any changes to their re-hiring practices until after December 31, 2025.

Employers should review additional resources here:

Law Firm Articles: Article 1, Article 2

Senate Bill (SB) 93

Senate Bill (SB) 723

Need help understanding how changes to employment laws will affect your business?

Learn more about how Vensure's California PEO services can help you navigate complex employment laws and keep your business compliant.


This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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