Topline:
The California Commissioner of Labor’s Office handed down the largest fine issued to a hotel in state history. The Hyatt Regency in Long Beach is being asked to pay nearly $4.8 million for allegedly violating California’s “Right to Recall” law.
Why now: The state labor commissioner began investigating the Hyatt Regency in September 2022 "after receiving complaints from numerous workers."
The findings: State officials said 25 workers were laid off on the onset of the COVID-19 pandemic, but were never offered jobs by the hotel when operations returned, violating the "Right to Recall" law, also known as SB93.
The California Commissioner of Labor’s Office handed down the largest fine issued to a hotel in state history. The Hyatt Regency in Long Beach is being asked to pay nearly $4.8 million for allegedly violating California’s “Right to Recall” law.
What we know
The state labor commissioner began investigating the Hyatt Regency in September 2022 "after receiving complaints from numerous workers," according to a statement from the office.
State officials said 25 workers were laid off during the onset of the COVID-19 pandemic, but were never offered jobs by the hotel when operations returned. The failure to offer jobs to those workers broke the "Right to Recall" law, also known as SB93, officials say. The law requires hospitality businesses to offer jobs that are the same or similar to the ones held by workers laid off during the pandemic.
Why it matters
State officials said the laid off workers included "restaurant servers, event servers, bartenders, housepersons, turndown attendants, cashiers, and stewards."
In the statement announcing the fine, Labor Commissioner Lilia Garcia-Brower said: “Some of these employees had as much as 24 years of experience, and were suddenly out of work due to a public health emergency."
Rigoberto Villagranam, who had worked for Hyatt for nearly 28 years, was among the those laid off. Villagrana said his family “struggled to pay our mortgage and keep food on the table."
Other hotels fined
At least one other hotel in California was fined for breaking the "Right to Recall" law. The Terranea in Rancho Palos Verdes has paid out $1.7 million in fines without admitting wrongdoing.
What's next
Hyatt is expected to pay the big $4.7 million fine, but it's unclear if the hotel giant will appeal the citation. LAist has reached out to Hyatt for comment.
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