The recent signing into law of Senate Bill (SB) 723 marks a critical development in the workplace rights of those within the hospitality and service industry; a development that every corporate lawyer should be aware of. Governor Newsom took the decisive step to sign this bill into law on October 10, 2023, thus extending the expiration of the right of recall rights for these employees.
Before this piece of legislation was enacted, these recall rights were set to expire on December 31, 2024. With Governor Newsom’s signature, the expiration has been pushed further to December 31, 2025. This is essential for employees whose jobs were affected by the downturn caused by the COVID-19 pandemic.
The signing of SB 723 wasn’t only about extending the tenure of recall rights. It was also about clarifying causation. The bill presumes that a separation due to a lack of business, reduction in force, or other economic, non-disciplinary reasons is due to a reason related to the COVID-19 pandemic. This presumption places the burden of proof on employers, making it unavoidable for them to address recall rights in such circumstances.
As legal professionals, it’s vital to keep ourselves updated about these developments and consider the implications for our respective clients, especially if they operate within the impacted industries. Alongside our obligations to our clients, we should also consider the ramification this could have on the workers. With this extended right of recall, more people in the hospitality and service industry will have an added layer of job security as we navigate the post-pandemic economy.
More details regarding this development are available on the legal news site, JD Supra.