California Labor Commissioner’s Office cites the Maybourne Beverly Hills $4.4 Million for Worker Recall Law violations

NEWS RELEASE

Sacramento-The Maybourne Beverly Hills, a luxury resort, has been fined $4.4 million by the Labor Commissioner's Office (LCO) for violating California's Worker Recall Law. The LCO, which operates under the Department of Industrial Relations (DIR), issued the fine in response to the hotel's failure to rehire employees who were laid off during the COVID-19 pandemic.

An LCO investigation launched in November 2022 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 impacted several long-serving employees, some of whom had dedicated up to a decade of service to the hotel.

What California Labor Commissioner Lilia García-Brower said: "It's unacceptable for a business, especially an opulent luxury resort like the Maybourne Beverly Hills, who has benefited from loyal hardworking employees, to disregard the Worker Recall Law and deny long-serving workers their rightful opportunity to return to their jobs."

The investigation, which was initiated based on reports of potential violations, revealed that when the Maybourne Beverly Hills reopened in 2021, newly hired workers replaced longstanding servers in direct violation of the California's Worker Recall Statute (Labor Code Section 2810.8). The estimated violations sought by LCO total $4,425,419 in damages and interest affecting 12 employees.

Background on Worker Recall Rights

California was the first state to establish worker recall protections during the pandemic. Under SB 93, which took effect in April 2021, hospitality and service employers must offer reemployment to laid-off workers based on seniority, and before considering outside hires or staffing agencies. This law protects roles across the industry, including housekeepers, banquet servers, cooks, janitors, and event staff. The law remains in place through December 31, 2025.

About the Labor Commissioner's Office

DIR's Division of Labor Standards Enforcement (California Labor Commissioner's Office) combats wage theft and unfair competition by investigating allegations of illegal and unfair business practices.

The LCO in 2020 launched an interdisciplinary outreach campaign, "Reaching Every Californian." The campaign amplifies basic protections and builds pathways to affected populations, so workers and employers understand legal protections and obligations, as well as the Labor Commissioner's enforcement procedures.

Californians can follow the Labor Commissioner on Facebook and Twitter.

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