Although the COVID-19 pandemic might feel like a thing of the past, California’s Right to Recall continues in place. In October 2023, Governor Newsom signed bill SB 723, which amended California’s Right to Recall law and extended its effect through the end of 2025.

As a reminder, the Right of Recall law, obligates employers in the hospitality and service industries, to rehire employees laid off due to the COVID-19 pandemic before hiring new employees for the same roles. Covered employers are required to offer laid off employees specified information about job positions that become available for which the employee is qualified and offer those positions based on a preference system.

Previous law defined “laid off employee” as an employee who worked for 6 months or more in the 12 months preceding Jan. 1, 2020, and whose most recent separation from active service was due to a reason related to COVID-19 pandemic. The new amendment re-defined “laid off employee “as any employee who was employed by the employer for 6 months or more and whose most recent separation from active employment by the employer occurred on or after March 4, 2020, and was due to a reason related to COVID-19 pandemic.

Additionally, the new bill created a presumption that a separation due to a lack of business, reduction in force, or other economic, non-disciplinary reasons is due to a reason related to the COVID-19 pandemic, and that the employee is therefore eligible for recall.

Employers should continue to recall eligible employees until December 31, 2025. Employers should also ensure that any new layoffs, reductions in force, or position eliminations do not implicate the provisions of the law.