New CA Law: Coronavirus Rehire Rights Required For Some

CALIFORNIA — Gov. Gavin Newsom on Friday signed into law a bill that will require employers in hospitality and business industries to rehire workers who were laid off during the pandemic.

Senate Bill 93 became law immediately and will — until 2024 — require employers to begin offering available positions to "qualified" former employees who worked for them for six months or more in the year preceding Jan. 1, 2020.

The news comes on the heels of the announcement that California will fully reopen June 15. But state leaders recognized that getting the economy back on track will take more than lifting coronavirus restrictions.

"As we progress toward fully reopening our economy, it is important we maintain our focus on equity," Newsom said. "SB 93 keeps us moving in the right direction by assuring hospitality and other workers displaced by the pandemic are prioritized to return to their workplace."

California's unemployment rate sunk to a new pandemic low of 8.3 percent in March, according to the Employment Development Department. But that rate is nearly double the 4.5 percent it was in March 2020.

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The Golden State saw some major job losses during the pandemic, even more so than some other populous states, since it took one of the strictest approaches to keep doors closed amid several coronavirus spikes.

"We applaud Governor Newsom who stands with these workers and affirms that no one should permanently lose their job during this pandemic," said Kurt Petersen, co-president of Unite Here Local 11, which pushed for the legislation.

The hospitality industry took a huge hit as restaurants were forced to close indoor operations throughout much of the state until recently. Bars and some wineries and breweries also remained shuttered for much of the pandemic.

From March 2020 to March 2021, California's leisure and hospitality industry lost 576,600 jobs, according to the EDD. As of March of this year, the state reported 1,408,100 payroll jobs in the industry.

Hotels, airports and large event centers were among sectors that will have to rehire former employees. The new bill will also allot $6 million to help businesses rehire employees. Those funds will be available through June 20, 2025.

SB 93 also bars businesses "from refusing to employ, terminating, reducing compensation, or taking other adverse action against any laid-off employee for seeking to enforce their rights."

Employers will now be required to keep a worker's records for three years, including a record of communication between the business and the worker, to offer a position.

"This is the biggest win for workers during the pandemic," Peterson said, according to the Los Angeles Times. "This is a lifeline to workers who have been out of work a long time. This gives them a guaranteed right to go back. That’s something they didn’t have yesterday."

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