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Release Number: 2022-62
Date: July 21, 2022

California Labor Commissioner’s Office Pays $1.5 Million to Workers Whose Recall Rights Were Violated

Long Beach— The California Labor Commissioner today paid $1.52 million to 57 workers at Terranea Resort in Rancho Palos Verdes who were laid off during the COVID-19 pandemic. Some workers were not timely offered jobs, while others did not receive any job offers once the resort re-opened, as required by the Right to Recall law. Workers compensated for having their labor rights violated include banquet housepersons, banquet servers, banquet captains, banquet bartenders, and junior sous chefs.

The $1.52 million payment comes from a settlement reached in May with Terranea Resort after it was cited on March 2, 2022 for failing to comply with the law after the resort re-opened for business in 2021. 

“The Right to Recall law protects workers who lost their jobs because of the COVID-19 pandemic by requiring service industry businesses such as hotels to offer workers their jobs back based on seniority,” said Labor Commissioner Lilia García-Brower. “The affected workers are today receiving payments to compensate them for the lost time, and most of the 57 workers  have now returned to their jobs, while others chose not to return. ” 

The Right to Recall law was enacted on April 16, 2021 and runs through December 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. For more information on the law, visit the Labor Commissioner’s Office webpage on Frequently Asked Questions on Recall Rights.

Enforcement investigations typically include a payroll audit of the previous three years to determine minimum wage, overtime and other labor law violations, and to calculate payments owed and penalties due.

The Department of Industrial Relations’ Division of Labor Standards Enforcement (California Labor Commissioner’s Office) combats wage theft and unfair competition by investigating allegations of illegal and unfair business practices.

The Labor Commissioner’s Office in 2020 launched an interdisciplinary outreach campaign, “Reaching Every Californian.” The campaign amplifies basic protections and builds pathways to affected populations, so workers and employers understand legal protections, obligations and the Labor Commissioner’s enforcement procedures. Californians can follow the Labor Commissioner on Facebook and Twitter.

Media Contact: Communications@dir.ca.gov, (510) 286-1161

Employers with Questions on Requirements May Contact: MakeItFair@dir.ca.gov