| Update Applicable to: | Effective Date |
| All Covered Hospitality and Service Employers | December 31, 2025 (Operative Period Extension) |
What happened?
On October 3, 2025, Governor Gavin Newsom signed Assembly Bill (AB) 858, which extends the sunset date for recall and reinstatement rights of employees laid off due to the COVID-19 pandemic until January 1, 2027.
Overview:
AB 858 extends the operative period from December 31, 2025, to January 1, 2027, preserving recall rights and enforcement for violations through 2026, ensuring that affected employees continue to hold recall rights, safeguarding job opportunities as businesses recover and stabilize post-pandemic.
These rights were first established under Senate Bill (SB) 93 in 2021, requiring certain employers in the hospitality and service industries to offer available positions to qualified laid-off employees.
The law applies to the following sectors:
- Hotels
- Private clubs
- Event centers
- Airport hospitality operations
- Airport service providers
- Building services for office, retail, or commercial buildings
Additional Information:
Summary of Provisions of AB 858 (Labor Code §2810.8)
Section 1 – Definitions: Defines covered employers, enterprises, and “laid-off employees” (those employed for six months or more and separated on or after March 4, 2020, for COVID-19-related reasons).
Section 2 – Employer Obligations
- Notify qualified laid-off employees of openings within 5 business days (via mail, email, or text).
- Employees have 5 business days to respond.
- Preference given to employees with the longest service.
- Maintain records for 3 years.
- Provide written notice within 30 days if hiring someone else.
Section 3 – Employee Protections: Prohibits retaliation for asserting rights or participating in proceedings.
Section 4 – Enforcement
- Jurisdiction: Division of Labor Standards Enforcement (DLSE).
- Remedies: reinstatement, back pay, benefits.
- Penalties: $100 per violation + $500 per day per employee until cured.
Section 6 – Sunset Clause: Operative until January 1, 2027; violations before December 31, 2026, remain enforceable.
Source References
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