Senate Bill 723 extends the sunset from December 31, 2024 to December 31, 2025, and establishes two additional key elements affecting employers by (1) redefining 'laid-off employee' as (a) one who worked for the employer for a period of at least six months and (b) who was most recently separated on or after March 4, 2020, and (2) creating the presumption that all employees separated 'due to lack of business, reduction in force, or other economic, nondisciplinary reason' were laid-off as a result of the COVID-19 pandemic.
The new law creates a presumption that any employees who fit into that category must be rehired. If not, and litigation ensures hospitality and service employers will be required to prove, by a preponderance of the evidence, that such an employee was originally terminated for some other cause. Hence, when considering re-hire decisions, these employers must carefully review terminated employees' files to ensure that any decision not to rehire an employee is justified.
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