California Governor Gavin Newsom Signs into Law Bill for Right to Return to Work

Hot off the presses: California Gov. Gavin Newsom signed into law a bill that provides rights to return to work for hospitality workers across hotels, airports, convention centers and clubs. The bill had passed the State Assembly earlier in the week. As an emergency measure, the bill goes into effect immediately.

We are grateful to the leadership and tenacity of our state Democratic legislators, especially Assemblymember Lorena Gonzalez-Fletcher, Assemblymember Ash Kalra, and Senator Maria Elena Durazo, who have valiantly stood with us in our journey to secure these rights.

PRESS RELEASE; CA Labor Commissioner Issues $4.8 Million Citation to Hyatt Regency Long Beach for Failing to Rehire Laid Off Workers

Long Beach, CA –  The California Labor Commissioner’s Office issued a citation Monday totalling $4.8 million to the Hyatt Regency Long Beach, alleging that the hotel failed to recall, or to timely recall, workers to their former positions in violation of state law. The citation is the largest citation known to have been issued against a hotel company in state history.

Signed into law in 2021, SB-93 requires hotels, event centers, and other hospitality businesses to offer employees whom they laid off due the COVID-19 downturn in tourism an opportunity to return to work in open positions for which they are qualified in order of seniority. The law, recently extended until  December 31, 2024,  provides job protection to some 700,000 laid-off housekeepers, cooks, waiters, and others across the state. 

Rigoberto Villagrana, who was laid off by the Hyatt Regency after working at the hotel since 1996, said, “Being laid off during the pandemic has been devastating for me and my family. We’ve struggled to pay our mortgage and keep food on the table. I am really glad to see the state stepping in to make sure Hyatt Regency complies with the law.”

The Labor Commissioner’s Office, which is led by Labor Commissioner Lilia Garcia-Brower, conducted an investigation in response to complaints from workers alleging violations of the recall law. 

“Some of these employees had as much as 24 years of experience, and were suddenly out of work due to a public health emergency,” said Labor Commissioner Lilia Garcia-Brower. “The employer failed to offer them their old jobs back in compliance with the law.”

After investigating Hyatt Regency’s recall practices, the agency issued a citation to Hyatt Regency for $4,799,563.84 in liquidated damages and interest owed to dozens of workers and civil penalties for the hotel’s alleged failure to recall, or timely recall, workers laid-off due to the Covid-19 pandemic.

Kurt Petersen, co-president of UNITE HERE Local 11, the hospitality workers’ union that fought for the law and helped the workers file complaints, said, “The Hyatt Regency in Long Beach has treated its veteran workers like they are disposable. This kind of behavior is not only immoral, but as the agency’s massive citation shows, it can also be illegal.” He continued, “I commend the Labor Commissioner for conducting such a thorough investigation and showing that our worker protection laws have real teeth.”

CA State Labor Commissioner Lilia Garcia-Brower

Today CA Labor CommissionerLilia Garcia-Brower began distributing more than $1.5 million to 57 workers laid off at Terranea Resort in Rancho Palos Verdes during the COVID-19 pandemic who were not offered job positions promptly as required by the Right to Recall Law.

Terranea Resort Agrees to Pay $1.52 Million to Resolve Legal Citation for Laid Off Workers 

Settlement reached with California Labor Commissioner in first legal action under state “return-to-work” law for workers laid off during the pandemic

Rancho Palos Verdes, CA-  The California Labor Commissioner’s Office has reached a $1.52 million settlement with the Terranea Resort to resolve a citation the agency issued in March to the ritzy resort alleging that it violated state law by failing to timely recall laid-off workers to their former positions.  The company also agreed to recall several veteran employees.

The settlement resolves the first case ever under California’s recently-enacted return-to-work law.  Signed into law last year, SB-93 requires hotels, event centers, and other hospitality businesses to offer employees whom they laid off due the COVID-19 downturn in tourism an opportunity to return to work in open positions for which they are qualified in order of seniority. The statute provides job protections to some 700,000 housekeepers, cooks, waiters, and other laid off workers.

David Gomez Martinez, who was laid off by the Terranea after working 10 years at the resort, said: “Being laid off during the pandemic has been devastating for me and my family. We’ve struggled to pay our bills and keep food on the table. I am really glad to know I will be getting my job back. Sad it took the state stepping in to make sure Terranea followed the law.”

The state agency, which is led by California’s Labor Commissioner Lilia Garcia-Brower, conducted an investigation in response to complaints from workers alleging violations of the recall law. More than a dozen Terranea workers–including servers, cooks, and room attendants–filed complaints.

The Labor Commissioner’s investigation found that the resort failed to recall, or to timely recall, 57 former employees.  Each of these 57 workers will receive a share of the $1.52 million settlement, with the average payout approximately $26,500 per worker.  Under the statute, damages are calculated based on the number of days a worker waits to be offered open positions for which they are qualified. The company will also pay $5,300 in civil penalties to the State of California.

Terranea workers were at the forefront of the campaign to enact SB-93. The company terminated most of its employees without making a binding commitment to rehire them and cut off their healthcare at the beginning of the pandemic.

Kurt Petersen, co-president of UNITE HERE Local 11, the hospitality workers’ union that fought for the law and helped the workers file complaints, said: “This is a tremendous victory for the Terranea’s workers, who fought to win and then to enforce their right to return to their jobs and provide for their families.  This massive settlement sends a powerful message to the entire hospitality industry that these worker protections have real teeth and that companies may violate them at their peril.  We commend the Labor Commissioner’s office for conducting such a thorough and effective investigation of the workers’ complaints.”

“My legislative colleagues and I fought to pass a law where hardworking long time employees who were laid off during the pandemic could return to their jobs,” said State Senator Maria Elena Durazo. “This outcome shows what can happen when workers, like those at the Terranea Resort, stand up for their rights and we in government listen and act.  I congratulate the California Labor Commissioner and her staff for their tremendous work to enforce this critical law.”

CA Labor Commissioner Issues $3.3 Million Citation to Terranea Resort for Failing to Rehire Laid Off Workers

Press Contact: Maria Hernandez | 623-340-8047 | [email protected]

In first-of-its-kind legal action, agency alleges resort violated state “return-to-work” law for workers laid off during the pandemic

Rancho Palos Verdes, CA-  The California Division of Labor Standards Enforcement (DLSE) issued a citation Wednesday totalling $3,264,484 to the swanky but controversial Terranea Resort, alleging that the hotel failed to recall, or to timely recall, workers to their former positions in violation of a recently-enacted state law. The Terranea resort is the first company known to be cited by the agency for allegedly violating workers’ rights under the law.

Signed into law last year, SB-93 requires hotels, event centers, and other hospitality businesses to offer employees whom they laid off due the COVID-19 downturn in tourism an opportunity to return to work in open positions for which they are qualified in order of seniority. The law provides job protection to some 700,000 laid-off housekeepers, cooks, waiters, and others across the state.

David Gomez Martinez, who was laid off by the Terranea after working 10 years at the resort, said: “Being laid off during the pandemic has been devastating for me and my family. We’ve struggled to pay our bills and keep food on the table. I am really glad to see the state stepping in to make sure Terranea complies with the law.”

The DLSE, which is led by California’s Labor Commissioner Lilia Garcia-Brower, conducted an investigation in response to complaints from workers alleging violations of the recall law. More than a dozen Terranea workers–including servers, cooks, and room attendants–filed complaints.

After investigating Terranea’s entire recall process, the DLSE issued the citation to Terranea for $3,264,484 in liquidated damages and interest owed to 53 workers for Terranea’s alleged failure to recall, or timely recall, workers laid-off due to the Covid-19 pandemic. Terranea was also assessed $5,300 in civil penalties ($100 for each worker whose rights were violated).

Terranea workers were at the forefront of the campaign to enact SB-93. The company terminated most of its employees without making a binding commitment to rehire them and cut off their healthcare at the beginning of the pandemic.

Kurt Petersen, co-president of UNITE HERE Local 11, the hospitality workers’ union that fought for the law and helped the workers file complaints, said: “The Terranea has treated its veteran workers like they are disposable. This kind of behavior is not only immoral, but as the agency’s massive citation shows, it can also be illegal.” He continued: “I commend the Labor Commissioner for conducting such a thorough investigation and showing that our worker protection laws have real teeth.”

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UNITE HERE Local 11 is a labor union representing over 32,000 hospitality workers in Southern California and Arizona that work in hotels, restaurants, universities, stadiums, sports arenas, convention centers, and airports.

WeHo Hotel Workers and Allies March to City Hall to Demand Immediate Action

After the City Council and City Manager discussed postponement of hotel worker protection policy during Monday’s Council meeting, workers and allies deliver petition to City Hall with 100 worker signatures in support of protection ordinance 

West Hollywood, CA: Over 30 workers and community allies, including a representative from the Stonewall Democratic Club and West Hollywood residents, marched to City Hall to deliver a petition in support of the anticipated hotel worker protection policy after a delay in the vote was announced during Monday night’s City Council meeting.

“I worked at the Standard for 16 years, and I still have no idea if I will be recalled back to work. Why would the city delay this?” said Sandra Pellecer, a former cook at the Standard Hotel in West Hollywood, as she attempted to deliver the petition with 100 worker signatures to City Hall.

The policy is aimed at ensuring workers in the hotel industry, many of whom have dedicated decades of service to the industry, have jobs to return to as the economy reopens. The policy will also contain a series of measures to address the constellation of industry-wide problems that existed prior to the COVID-19 pandemic, such as sexual assault, inadequate compensation for heavy workloads, and the lack of comprehensive, standardized training.

With the industry scheduled to reopen in less than a week, dozens of laid off hotel workers urged the City to bring the ordinance to a vote as soon as possible.

“We need to know that we will return to jobs where we have enough time to clean rooms thoroughly,” said Norma Hernandez, a room attendant who worked at the Mondrian for 12 years. “Before I was laid off, I would clean 12 rooms in a day. I was constantly racing against the clock to finish my assignment, and would even go without water to avoid bathroom breaks to save time. We need to be compensated fairly for this work if we are recalled.”

Similar worker retention ordinances have been passed in many cities across the region, including Santa Monica, Los Angeles, Long Beach, Pasadena, Glendale, and Los Angeles County. In 2019, the city of Santa Monica passed a historic Housekeeper Bill of Rights with similar panic button, workload compensation, training, and worker retention measures. Santa Monica also passed right of recall in the wake of 9/11.

When the COVID-19 pandemic first hit, 95% of hotel workers were laid off, most left without healthcare or job security, and many after decades in the industry. Workers in the hotel industry are overwhelmingly immigrants and women of color, some of the hardest hit amid the pandemic.

The policy would ensure that hotel workers are a part of a just economic recovery for West Hollywood.

Hospitality workers celebrate right to return to work