California Labor Commissioner Fines Luxury Resort $4.4M for Worker Recall Violations

The Labor Commissioner’s Office fined the Maybourne Beverly Hills $4.4 million for violating California’s Worker Recall Law.

The LCO issued the fine in response to the a luxury resort’s failure to rehire employees who were laid off during the COVID-19 pandemic.

An LCO investigation launched in 2022 reportedly found that the Maybourne Beverly Hills hotel failed to comply with the state law requiring hospitality employers to prioritize offering available positions to workers displaced by the pandemic. The violations reportedly impacted several long-serving employees.

The investigation, which was initiated based on reports of potential violations, reportedly showed that when the Maybourne Beverly Hills reopened in 2021, newly hired workers replaced longstanding servers in violation of the California’s Worker Recall Statute.

The estimated violations sought by LCO total $4,425,419 in damages and interest affecting 12 employees.

California established worker recall protections during the pandemic. Under Senate Bill 93, which took effect in 2021, hospitality and service employers must offer reemployment to laid-off workers based on seniority, and before considering outside hires or staffing agencies. The law includes housekeepers, banquet servers, cooks, janitors and event staff. The law remains in place through Dec. 31, 2025.