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An employee rights bill currently under consideration in
California is the Employment: Rehiring and Retention: Displaced Workers Act.
This bill is under fierce debate, with labor unions staunchly behind the bill
and businesses actively lobbying against the measure. One thing is certain,
with inflation still at issue and talk about a recession, layoffs are on the
minds of many people.
Even though this bill is pending in the Senate Labor, Public
Employment, and Retirement Committee of the California legislature, if passed,
it will have a significant impact on employees in the hospitality and business
service industries. The actual businesses that this bill will apply to are laid
out in the bill and are the same as those in the existing legislation, but
among those covered would be hotels, private clubs, event centers, airport
hospitality businesses, airport services, and building services. Under SB-723,
laid-off employees who are covered under the included businesses would have a
permanent right to be recalled, with the exception of those laid off due to
performance or misconduct.
As of now, the state assembly has until September 14, 2023
to pass the bill. If it passes, Governor Newsom has until October 14, 2023 to
either sign or veto the bill.
Here’s what you should know about SB-723 and its expansion
of the rehiring requirements for workers who were displaced both before and
after the pandemic.
What is SB-723?
This bill is an amendment that will repeal those parts of
the Labor Code Section 2810.8 passed in 2021 dealing with the COVID-19 state of
emergency. SB-723 basically removes the COVID-19 restrictions so that a
laid-off worker will no longer be defined as one affected by the pandemic.
The original law specifies that certain employers must offer
COVID-19 related laid off workers specific information about job positions that
become available that they might be qualified for to first. Set to expire on
December 31, 2024, this new bill introduced by California State Senator Maria
Elena Durazo of Los Angeles redefines the definition of a laid-off worker to no
longer specify COVID-19.
SB-723 greatly broadens the current definition of a laid-off
worker as defined in the current Labor Code Section 2810.8, which is set to
expire at the end of 2023.
Current Definition in Labor Code Section 2810.8
Any employee who was employed by an employer for six months
or more in the 12 months before January 1, 2020, and whose most recent
separation from active employment was due to a reason related to the COVID-19
pandemic that was nondisciplinary. This could include a public health
directive, a government order for a shutdown, a lack of business, or a
reduction in workers.
New Definition Under SB-723
SB-723 redefines a laid-off worker to include any employee
who was employed by an employer for six months or more and whose most recent
separation from active employment occurred on or after March 4, 2020. This
separation of employment is the result of a number of reasons that can include
a public health directive, government order for a shutdown, lack of business,
reduction in force, or other economic nondisciplinary reasons no longer due to
COVID-19. And, this new law would be permanent; there is no expiration date.
What SB-723 means to a laid-off worker in the covered
industries, if passed, is that if their layoff is due to “a public health
directive, government shutdown order, lack of business, a reduction in force,
or other economic, nondisciplinary reason,” that worker would be entitled to be
given the opportunity for re-employment in a position in which they qualify. If
multiple positions are open, seniority would become a factor.
Employers will be required to keep records for three years
that include the employee’s:
·
Full legal name
·
Job classification at the time of being laid off
·
Date of hire
·
Last known residence
·
Last known contact information, including email
address and telephone number
·
Notice of layoff
Employee Protection or Job Killer?
With lots of trepidation on where the economy is going,
SB-723 is both praised by unions and the workers they represent and resented by
the businesses that will have to adhere to the new law. Many businesses feel
this bill puts an undue administrative burden on them as it increases the
number of employees who might want to exercise their recall rights. Businesses
claim the process is onerous and comes with added costs at a time when they’ve
already been disproportionately impacted by Covid. Another worry is that it
leaves them open to legal issues for simply making an error.
Every year, California’s Chamber of Commerce assigns pending
legislative bills they feel are too demanding on business to a Job-Killer list.
These are almost always bills that are supported by labor unions and consumer
advocates. This year, the California Chamber of Commerce has put SB-723 on
their annual list of “Job Killer Bills,” for being too hard on employers.
Too many employees who were suddenly laid off during the
pandemic found themselves without work and uncertain about their future. For
these laid-off employees, this bill could become a welcomed way back to gainful
employment. And for current employees, it would add a layer of protection
against future layoffs from no fault of their own. While businesses have the
right to downsize when necessary, employees should be able to resume their work
once a downturn is past.
You Can Count on Gomez Trial Lawyers
Employment law is a specialization, so it’s important to use
an attorney who has experience handling cases similar to yours with a good
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to go up against businesses with unfair or outdated practices. The legal firm
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With over 550 5-star reviews, Gomez Trial Lawyers welcomes
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