California’s labor commissioner on Tuesday slapped the Anaheim Marriott with more than $12 million in fines for failing to try to rehire workers who were laid off during the pandemic.
The hotel did not properly offer jobs to 28 former employees, including bell attendants, engineers, landscapers and lead cooks, according to the office of Lilia García-Brower, the state labor commissioner.
The $12.45-million penalty comes under California’s “right to recall” law, which requires employers in hospitality and building services industries to first offer workers who were let go during the pandemic the chance to return when job openings become available.
The labor commissioner’s office said it launched its investigation of the Anaheim Marriott in June 2022 after Unite Here Local 11, a union representing hospitality workers, submitted reports alleging the hotel had violated the recall law by using staffing agencies to make hires.
The investigation found that the hotel, which reopened in 2021 after shutting down amid the pandemic, failed to offer back jobs to long-serving employees, or offered employees their jobs back belatedly after hiring others. Some of the affected employees had worked with the company for as many as 40 years.
“Failure to rehire long-serving employees is not just a violation of the law, but a violation of trust these workers had in their employer after years of dedicated and loyal service. This citation reflects our commitment to holding violators accountable and ensuring that workers’ rights are protected,” García-Brower said in an emailed statement.
The law allows damages of $500 per worker for each day the employer does not follow recall rights called for under the law. In the Anaheim Marriott case, the state determined there had been 21,753 total days of violations, according to the citation.
The fine issued to the Anaheim Marriott is the largest levied so far under the law. The citation holds Marriott Hotel Services Inc., Marriott Hotel Services LLC and Marriott International Inc. jointly liable for the violations.
The state issued its first right-to-recall citation in March 2022, to Terranea Resort in Rancho Palos Verdes, ordering $3.3 million in fines. Terranea appealed the fines, saying the law was vaguely worded. In July that year, the upscale hotel reached a settlement with the state, agreeing to pay $1.52 million without admitting wrongdoing.
In October 2023, the state fined Hyatt Regency Long Beach $4.8 million for failing to offer jobs in a timely manner to 25 employees, including restaurant servers, bartenders, housekeepers, cashiers and stewards.
The right-to-recall law, Senate Bill 93, went into effect in spring 2021 and was intended to end Dec. 31 this year. Last year, lawmakers approved SB 723, which extends the protections for employees in the hospitality and building services industries until the end of 2025.