Gomez Trial Attorneys

Get A Free Consultation Today! 619-237-3490

Learning About SB 723 – The Employment: Rehiring and Retention: Displaced Workers Act

Table of Contents

An employee rights bill currently under consideration in California is the Employment: Rehiring and Retention: Displaced Workers Act. This bill is under fierce debate, with labor unions staunchly behind the bill and businesses actively lobbying against the measure. One thing is certain, with inflation still at issue and talk about a recession, layoffs are on the minds of many people.

Even though this bill is pending in the Senate Labor, Public Employment, and Retirement Committee of the California legislature, if passed, it will have a significant impact on employees in the hospitality and business service industries. The actual businesses that this bill will apply to are laid out in the bill and are the same as those in the existing legislation, but among those covered would be hotels, private clubs, event centers, airport hospitality businesses, airport services, and building services. Under SB-723, laid-off employees who are covered under the included businesses would have a permanent right to be recalled, with the exception of those laid off due to performance or misconduct.

As of now, the state assembly has until September 14, 2023 to pass the bill. If it passes, Governor Newsom has until October 14, 2023 to either sign or veto the bill.

Here’s what you should know about SB-723 and its expansion of the rehiring requirements for workers who were displaced both before and after the pandemic.

What is SB-723?

This bill is an amendment that will repeal those parts of the Labor Code Section 2810.8 passed in 2021 dealing with the COVID-19 state of emergency. SB-723 basically removes the COVID-19 restrictions so that a laid-off worker will no longer be defined as one affected by the pandemic.

The original law specifies that certain employers must offer COVID-19 related laid off workers specific information about job positions that become available that they might be qualified for to first. Set to expire on December 31, 2024, this new bill introduced by California State Senator Maria Elena Durazo of Los Angeles redefines the definition of a laid-off worker to no longer specify COVID-19.

SB-723 greatly broadens the current definition of a laid-off worker as defined in the current Labor Code Section 2810.8, which is set to expire at the end of 2023.

Current Definition in Labor Code Section 2810.8

Any employee who was employed by an employer for six months or more in the 12 months before January 1, 2020, and whose most recent separation from active employment was due to a reason related to the COVID-19 pandemic that was nondisciplinary. This could include a public health directive, a government order for a shutdown, a lack of business, or a reduction in workers.

New Definition Under SB-723

SB-723 redefines a laid-off worker to include any employee who was employed by an employer for six months or more and whose most recent separation from active employment occurred on or after March 4, 2020. This separation of employment is the result of a number of reasons that can include a public health directive, government order for a shutdown, lack of business, reduction in force, or other economic nondisciplinary reasons no longer due to COVID-19. And, this new law would be permanent; there is no expiration date.

What SB-723 means to a laid-off worker in the covered industries, if passed, is that if their layoff is due to “a public health directive, government shutdown order, lack of business, a reduction in force, or other economic, nondisciplinary reason,” that worker would be entitled to be given the opportunity for re-employment in a position in which they qualify. If multiple positions are open, seniority would become a factor.

Employers will be required to keep records for three years that include the employee’s:

·         Full legal name

·         Job classification at the time of being laid off

·         Date of hire

·         Last known residence

·         Last known contact information, including email address and telephone number

·         Notice of layoff

Employee Protection or Job Killer?

With lots of trepidation on where the economy is going, SB-723 is both praised by unions and the workers they represent and resented by the businesses that will have to adhere to the new law. Many businesses feel this bill puts an undue administrative burden on them as it increases the number of employees who might want to exercise their recall rights. Businesses claim the process is onerous and comes with added costs at a time when they’ve already been disproportionately impacted by Covid. Another worry is that it leaves them open to legal issues for simply making an error.

Every year, California’s Chamber of Commerce assigns pending legislative bills they feel are too demanding on business to a Job-Killer list. These are almost always bills that are supported by labor unions and consumer advocates. This year, the California Chamber of Commerce has put SB-723 on their annual list of “Job Killer Bills,” for being too hard on employers.

Too many employees who were suddenly laid off during the pandemic found themselves without work and uncertain about their future. For these laid-off employees, this bill could become a welcomed way back to gainful employment. And for current employees, it would add a layer of protection against future layoffs from no fault of their own. While businesses have the right to downsize when necessary, employees should be able to resume their work once a downturn is past.

You Can Count on Gomez Trial Lawyers

Employment law is a specialization, so it’s important to use an attorney who has experience handling cases similar to yours with a good track record for success. We understand how difficult it can be for employees to go up against businesses with unfair or outdated practices. The legal firm you choose to hire can make all the difference in your outcome.

With over 550 5-star reviews, Gomez Trial Lawyers welcomes the opportunity to hear about your complaint. For help, contact Gomez Trial Lawyers today for a free consultation by calling 866-TRIAL LAW (866-874-2552) or by contacting us online.

Related Content:

Our Process... Easy as 1. 2. 3!

Call Us

We will determine your case and submit

We get to work

You will get regular update from us

Win the trial

Collect your compensation

  • “John helped me find doctors, he referred me to his neurologist, his physical therapist, I mean, anything I needed he was right there, every step of the way. I couldn’t have asked for a better result from all of this, I would absolutely recommend Gomez Trial Attorneys.”

  • “During the time I was working with Gomez Trial Attorneys, they treated me very, very well. 100% of the time, they believed me, and they were very compassionate. They felt sorry for what happened and they understood the therapy process.”

  • “They held my hand the whole time and kept me in the loop every aspect of my case which was very refreshing to me. They helped me get my settlement offer as fast as possible and I was able to keep my farm”

  • “The Gomez experience was the best experience it could be for me really, only positive things to say. They really were there every step if the way. Thanks to Gomez Trial Attorneys my dad is able to support my family as a single father”

  • “He opened the door for me to join his firm to help other brain Injury survivors and I never met another firm who is like this who was so understanding and caring who took the extra step and walked the extra mile with their clients and this is the best”

  • “I am very satisfied with the outcome with Gomez and I would definitely recommend Gomez to anybody, we tell people all the time, Get Gomez! They are really thorough with everything and they make you feel real comfortable.”

  • “Just helped us through, guided us through, I kept notes all those years, we had questions all the time and they would always keep us informed of what was going on. They just unlayered it, layer by layer, I’ve never seen anything like them. Thank God for them.”

Get your
free consultation

No Fees Until We Win


24/7 Support & Free Consultation

San Diego

(619) 237-3490

755 Front Street
San Diego, CA 92101

El Centro

(760) 259-2166

301 S 8 street

Solana Beach

(858) 400-4333



(951) 355-7770



(951) 900-3440

2 Better World Cir, Suite 220, Temecula, CA 92590

St. Petersburg

(727) 500-1076

880 21st ave n
St. Petersburg, FL 33704