California Rehire Rules for Workers Displaced by COVID-19

As of Apr. 16, 2021, certain employers are required to give preference to rehiring and retaining employees displaced by COVID-19 when filling new positions. This new law applies to hotels, private clubs, event centers, airport hospitality operations, airport service providers and enterprises that provide building service to office, retail or other commercial buildings. The law expires Dec. 31, 2024.

Preference System

Employers must notify qualified, laid-off employees within five business days of all new job positions. If more than one qualified, laid-off employee applies, the position must be offered to the individual with the greatest length of service based on the date of hire.

Laid-off employees who receive an offer must be given at least five business days to accept or decline the offer. Employers can make simultaneous, conditional offers to laid-off employees, as long as preference parameters are observed. Employers must keep a record of these offers and related communications for three years.

Employers that decline to recall laid-off employees on the grounds of qualifications must provide laid-off employees a notice including the reasons for the decision within 30 days. Finally, employers cannot refuse to employ, terminate, reduce compensation or take other adverse action against any laid-off employee for seeking to enforce their rights under this law.

Employee Eligibility

Laid-off employees would qualify for a recall position if they held the same or similar position at the enterprise at the time of the employee’s most recent layoff with the employer.

Laid-off Employee

Any employee who was:

  • Employed for six months or more during the 12 months preceding January 1, 2020; and

  • Separated from employment due to a reason related to the COVID-19 pandemic, including a public health directive, government shutdown order, lack of business, a reduction in force or other economic, non-disciplinary reason related to the COVID-19 pandemic.