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Santa Monica, CA Hotels & Lodging: Hotel Worker Retention (2026)

Significant Restrictions
Compiled from the official code textEditor Martyn O'NeillLast verified August 2026

Key Facts

Retention period
90 days from hotel reopening under new employer
Worker list deadline
Within 15 days of change in control
Minimum prior employment for eligibility
2 months before change in control
Civil penalty
$100 per worker per day; trebled for willful violations
Performance evaluation
Required in writing at end of retention period
Discharge standard during retention
Only for documented individual performance or conduct

Summary

When a Santa Monica hotel changes ownership or control, the incoming employer must retain all eligible hotel workers for a 90-day retention period and may only discharge them during that period for documented individual cause.

§ 4.67.050. Hotel worker retention.

(a) Within fifteen days of a change in control, an incumbent hotel employer shall provide a successor hotel employer with a list of eligible hotel workers. This list shall include the name, date of hire, and job classification of each eligible hotel worker. A successor hotel employer shall be required to maintain and hire from this list during the hotel worker retention period.

(b) A successor hotel employer shall, during the hotel worker retention period, offer each eligible hotel worker employment for no less than ninety days, except that:

(1) A successor hotel employer shall not be required to offer employment to an eligible hotel worker if the successor hotel employer has reasonable and substantiated cause not to retain that eligible hotel worker based on that eligible hotel worker's individual performance or conduct while employed by the incumbent hotel employer.

(c) An eligible hotel worker retained pursuant to this Section shall be employed under terms and conditions established by the successor hotel employer as required by law and shall not be discharged except for good cause based on individual performance or conduct.

Full Breakdown

The hotel worker retention period runs for 90 days from the first date the hotel is open to the public under the new employer. During that period, the successor employer can reduce headcount only by seniority and job classification, following any collective bargaining agreement first. At the end of the 90-day period, the successor must give each retained worker a written performance evaluation. Workers covered include all non-managerial, non-supervisory hotel workers employed at the hotel for at least two months before the change.

Violations & Fines

Violations expose the hotel employer to civil liability of $100 per aggrieved worker per day; willful violations are subject to treble damages. Prevailing workers are entitled to attorneys' fees and costs. Employers may not retaliate against workers for exercising rights under this chapter.

Frequently Asked Questions

Does a hotel sale trigger worker retention requirements?
Yes. Any change in control, including sale of assets, sale of a controlling interest, or change in the management contract, triggers the 90-day retention period.
Can the new owner reduce staff after buying a hotel?
Only if fewer workers are genuinely needed; layoffs must follow collective bargaining agreement terms if applicable, or be done by seniority and job classification, not arbitrary selection.
What happens to workers at the end of the 90 days?
The successor must evaluate each retained worker in writing. Workers with satisfactory performance must be considered for continued employment, but ongoing employment is not guaranteed.

Sources & Official References

Other rules in Santa Monica

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