State regulators have paid out more than $1.5 million to 57 Terranea Resort workers who were laid off during the COVID-19 pandemic but not called back promptly or never called at all when business picked up as required by California’s right to recall law.
Signed into law last year, Senate Bill 93 requires hotels, event centers and other hospitality businesses to offer employees who were laid off due to the pandemic downturn an opportunity to return to work in open positions for which they are qualified in order of seniority.
Distribution of the Terranea payouts — which average $26,500 per employee — began during an in-person press conference Thursday in Los Angeles led by Labor Commissioner Lilia Garcia-Brower.
“The affected workers are today receiving payments to compensate them for the lost time, and most of the 57 workers have now returned to their jobs, while others chose not to return,” Garcia-Brower said.
In a statement issued Thursday, Terranea said the resort made a commitment to bring back its pre-pandemic workforce in a process that began well before SB 93 went into effect.
“We made good on that commitment, with more than 800 employees back on the property today,” the resort said. “In fact, nearly all of our pre-pandemic workforce was either rehired or offered employment. Any allegation to the contrary is false.”
The $1.52 million payment stems from a settlement reached in May with the Palos Verdes resort after it was cited on March 2, 2022, for failing to comply with the law after it re-opened for business in 2021.
The Labor Commissioner’s investigation was spurred by complaints from employees alleging violations of the recall law. More than a dozen Terranea workers — including servers, cooks and room attendants — filed complaints.
Terranea said the investigation was “a consequence of vague and poorly-defined language in SB 93.”
“We believed and continue to believe we were in compliance with the law and made the decision to settle to avoid the time and expense of unnecessary litigation,” the resort said.
Virginia Eredia, who was laid off by Terranea after working nearly six years as a turndown attendant, said she’s weathered a tough time.
“After losing my job, I lost my house, my car and had to go into a lot of debt,” she said. “This money will help ease some of that and will help me buy a car to get to work.”
Terranea workers were at the forefront of the campaign to enact SB 93, which will remain in effect through Dec. 31, 2024.
Unite Here Local 11, a hospitality workers’ union, fought for the law and helped the workers file their labor complaints.
“When the Terranea Resort exploited the pandemic to fire most of their workers, the hotel caused incalculable chaos and harm on those workers and their families,” said Kurt Petersen, Unite Here’s co-president. “Rather than walking away, these brave workers decided to fight to return to their jobs.”
Source: Orange County Register
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