California Cites Resort $3.3M for Failing to Rehire Workers Axed During Pandemic

The California Labor Commissioner’s Office cited Terranea Resort in Rancho Palos Verdes $3.3 million for failing to offer job positions to 53 employees laid off during the COVID-19 pandemic once the resort reopened.

The employees included housepersons, banquet servers and bartenders, junior sous chefs and massage therapists.

“These workers invested years of service at Terranea and through no fault of their own lost their jobs due to the pandemic,” Labor Commissioner Lilia García-Brower said in a statement. “The law makes it clear that workers in the hospitality and services industries must be prioritized to return to the same or similar positions when their former employer reopens for business.”

The Labor Commissioner’s Office started its investigation in July 2021 after receiving reports of labor law violation from Unite Here Local 11 on behalf of 14 laid-off workers. The workers claimed they were not offered an opportunity to return to their jobs based on seniority when the hotel increased business operations in 2021.

The investigation included interviews with former and current workers, depositions from Terranea’s Human Resources managers and an audit of payroll records from April 16 to December 31, 2021.

The investigation determined that DH Long Point Management LLC, dba Terranea Resort, violated the Right to Recall law and cited the hotel $3 million in liquidated damages, $5,300 in civil penalties, and $208,582 in assessed interest for a total of $3,293,882.

The law entitles each worker whose rights are violated liquidated damages of $500 per day until the violation is cured and civil penalties against the employer of $100 for each employee whose rights are violated.

The Right to Recall law went into effect on April 16, 2021, and runs through Dec. 31, 2024. Covered workers include employees at hotels or private clubs with 50 or more guest rooms, airports, airport service providers, and event centers. Also included are laid-off employees engaged in building services such as janitorial, maintenance and security services at retail and commercial buildings.

Topics California COVID-19