On April 29, 2020, in response to COVID-19, Los Angeles City Council passed two ordinances: 1) the Right of Recall Ordinance; and 2) the Worker Retention Ordinance. While still pending approval from the Mayor of Los Angeles, both ordinances, due to the uncertainty that accompanies COVID-19, have the potential to have a lasting impact on select businesses in Los Angeles.
Under the Right of Recall Ordinance, select employers are now required to attempt to rehire workers laid off first, because of COVID-19 prior to offering open positions to a new employee. In conjunction with this ordinance, if a termination occurred on or after March 4, 2020, it will be assumed that the employee is entitled to the right to recall unless the employer can show that the employee was terminated for a disciplinary reason. Most importantly, because the ordinance does not provide a date that it shall expire, like many other Covid-19 enacted laws, select employers will be required to adhere to this burden until City Council repeals the ordinance.
Under the Worker Retention Ordinance, select employers will be required to adhere to certain worker retention provisions if there is a change of ownership or control of a select business within two years of the COVID-19 declaration of emergency. Specifically, a successor to a select business will be required to maintain a preferred list of workers for potential hire, and will be required to hire from that list for the period from the execution of any transfer documents of the sale of the business to six months after the successor business has been operating for the public. And, the successor employer will be required to maintain records, which includes a written verification, of their offers for employment pursuant to this Ordinance for at least three years from the date of the offer.
For more information on the status of these ordinances, and whether or not they apply to your business, or other Covid-19 related laws, please contact the employment attorneys at Chauvel & Glatt.
The material in this article, provided by Chauvel & Glatt, is designed to provide informative and current information as of the date of the post. It should not be considered, nor is it intended to constitute, legal advice or promise similar outcomes. For information on your particular circumstances, please contact Chauvel & Glatt at 650-573-9500.