What You Need to Know About California’s WARN Act and Mass Layoff Laws
Planning the future after a job loss can be a stressful experience for employees. Here’s everything you need to know about California’s WARN Act and mass layoff laws.
California’s Worker Adjustment and Retraining Notification Act (WARN) requires employers to notify employees, state representatives, and local representatives of a mass layoff at least 60 days in advance. All California businesses with 75 or more employees must provide a WARN notice to their employees.
An Overview of California’s WARN Act
Under California’s Worker Adjustment and Retraining Notification Act (WARN), employers must provide employees, state representatives, and local representatives with a 60-day notice before enacting a mass layoff. California law defines a ‘mass layoff’ as “the layoff during any 30-day period of 50 or more employees at a covered establishment.” The WARN Act aims to allow sufficient time for employees to search for new jobs and adjust to lifestyle changes.
Related: California Wage Deduction FAQs
Eligibility for California’s WARN Act
All full-time employees under a company with 75 or more employees must receive a WARN notice from their employer. Full-time employees must have worked for at least six months before issuing the WARN notice to be counted as part of a mass layoff. Part-time employees must receive a WARN notice from their employer but do not count toward a mass layoff. Temporary contract employees are not entitled to a WARN notice.
Penalties for Violating California’s WARN Act
Employers who fail to provide employees with a WARN notice are subject to legal penalties. In California, penalties for violating the WARN Act apply to each day of the violation. For example, if an employer took 45 days to notify employees of a mass layoff, penalties would last 15 days.
Possible legal penalties for violating the WARN include:
$500 civil penalty for each violation day
Paying each affected employee their lost wages for each violation day
Providing each affected employee with benefits for each violation day
Covering medical costs that an employee benefit plan would have covered before the mass layoff
Related: California Wage Deduction Laws: Explained
FAQs About California’s WARN Act
Does California’s WARN Act apply to plant closures?
California’s WARN Act applies to plant closures. Employers must provide employees with a 60-day notice of a plant closure, regardless of employee size.
Does California’s WARN Act apply to major relocations?
California’s WARN Act applies to major relocations. Employers who plan to move to a location at least 100 miles from the original workplace must provide employees with a 60-day notice.
Are there exceptions to California’s WARN Act?
California law does not require employers to provide a 60-day WARN notice if “a mass layoff, relocation or plant closure is necessitated by a physical calamity or act of war.”
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