On October 10, 2023, Governor Newsom signed Senate Bill (SB) 723, which moves the expiration the right of recall rights for employees in the hospitality and service industry from December 31, 2024, to December 31, 2025. The bill adds 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.

In 2021, Newsom signed Senate Bill (SB) 93 which required certain employers in hospitality and service industries to rehire employees laid off due to the COVID-19 pandemic.

SB 93 applied to the following industries:

• Hotels
• Private clubs
• Event Centers
• Airport Hospitality Operations
• Airport Service Providers
• Building Services to office, retail, or other commercial buildings

Previously SB 93 was set to sunset at the end of 2024, but SB 723 extends the sunset until the end of 2025.