California WARN Act: Offering Job Loss Protection Amidst Mass Layoffs

The surge in tech layoffs over the last year has employees across the country anxious about the post-pandemic changes in company strategies and declining market conditions. Major employers including Google, Meta, and Amazon saw dramatic growth during the pandemic and hired accordingly. The aftermath was, however, a reckoning with job surpluses and attempts by companies to find balance, all while navigating rising interest rates and the threat of an economic recession. 

The California WARN Act is in place for situations such as this one, protecting both full- and part-time workers when companies plan to make mass layoffs or shut down operations. The labor law requires employers to provide 60 days’ notice when a mass layoff is coming, giving employees time to prepare for what’s next. An expansion of the federal WARN Act, the law in California has limited exemptions and serious penalties for employers who don’t comply. 

In this article, you will learn about the key features of the California WARN Act, what companies have recently filed notices, and how it compares to the federal WARN Act. 

What Is the California WARN Act?

The California Worker Adjustment and Retraining Notification (WARN) Act is a labor law that requires employers in California to provide advance notice to employees and certain government agencies in the event of a mass layoff, plant closure, or substantial reduction in work hours. 

The primary purpose of the California WARN Act is to provide affected workers and their communities with enough time to prepare for the potential impact of significant job losses. According to California’s Employment Development Department, “Advance notice provides employees and their families time to transition and adjust to the potential loss of employment, time to seek alternative jobs and, if necessary, time to obtain skills training or retraining to successfully compete in the job market.”

Key Features of the California WARN Act 

1. Notification Requirements

Covered employers are required to provide written notice at least 60 days in advance of the planned layoffs, plant closures, or reductions in work hours. This notice should be given to affected employees, their representatives, and specific government agencies, such as the California Employment Development Department (EDD), local workforce development boards, and the chief elected official of each city and county government within which the termination occurs. 

A WARN Act notice must include:

• Number of employees being laid off for each location and their roles 
• A description of the company’s future plans for the affected positions, including whether they are categorized as permanent or temporary
• The date that layoffs are scheduled to occur
• Contact information for a company official who can be reached for additional information

2. Coverage

The California WARN Act applies to employers from both for-profit and non-profit companies with 75 or more full-time or part-time employees. 

Employers are required to file a WARN Act notice if there’s a:

• Mass layoff involving 50 or more employees within a 30-day period
• Plant closure that stops all or almost all industrial or commercial operations, regardless of the number of employees affected
• Relocation that moves all or most of the company’s operations more than 100 miles away

3. Exemptions

Certain events, such as unforeseeable business circumstances or natural disasters, might lead to exceptions in providing the full 60-day notice under the WARN Act. However, the employer still needs to give notice as soon as possible and provide reasons for the shortened notice period.

For temporary employees, such as when someone is hired for a seasonal position or short-term assignment, there must be an understanding before hiring that indicates a specific end date. These positions may include movie set crews, construction site workers, seasonal resort workers, crop harvesting, and holiday retail. 

4. Penalties

Employers who fail to comply with the California WARN Act’s notification requirements may be subject to penalties, which can include back pay and benefits for affected employees for each day the notice is not provided. Employers may be fined up to $500 for each day they did not provide notice and could have to pay fines up to $5,000. 

Recent Examples of California WARN Act Notices

In the last year, from June 2022 to June 2023, there have been 888 WARN Act notices in California, totaling 90,693 affected employees. On the list of recent layoff notices include those made by major tech companies Meta, Google, Microsoft, and Intel. 

Some other substantial 2023 layoffs in California: 

• Dreyer’s Grand Ice Cream in Kern County laid off 1,015 employees in July 2023.

• Walmart in San Bernardino County laid off 953 employees in June 2023.

• Hollywood Palladium in Los Angeles, a subsidiary of Live Nation Entertainment, temporarily closed in June 2023, affecting 509 employees.

• Cepheid, a molecular diagnostics company with various locations in Santa Clara County, laid off 625 employees in June 2023.

• Healthcare Staffing Professionals, Inc. in Los Angeles laid off 434 employees in June 2023.

• Virgin Orbit in Los Angeles laid off 603 employees in April 2023.

• Gap, Inc., in San Francisco laid off 663 employees in April 2023.

California WARN Act vs. Federal WARN Act

The California WARN Act and the federal WARN Act are both labor laws designed to provide advance notice to employees and relevant entities in the event of significant layoffs. However, there are some important differences between the two laws. 

Here’s a comparison of the California WARN Act and the federal WARN Act:

Coverage

• California WARN Act: Applies to employers with 75 or more full-time or part-time employees. It covers layoffs involving 50 or more employees within a 30-day period, as well as plant closures and reductions in hours affecting certain percentages of the workforce.

• Federal WARN Act: Applies to employers with 100 or more full-time employees, excluding employees who have worked for less than six months in the last year or who work an average of fewer than 20 hours a week. Federal law also sets mass layoff minimums at 500 employees or 33% of total company employees. 

Notification Period

• California WARN Act: Requires employers to provide written notice at least 60 days in advance of qualifying layoffs, plant closures, or reductions in work hours.

• Federal WARN Act: Also requires employers to provide notice at least 60 days in advance of qualifying events.

Exceptions for Shortened Notice

• California WARN Act: Provides limited exceptions for situations involving unforeseeable business circumstances or natural disasters, which might lead to a shorter notice period. Employers are still required to provide notice as soon as possible and explain the reasons for the shortened notice.

• Federal WARN Act: Includes exceptions for unforeseeable business circumstances and natural disasters as well, allowing for a shortened notice period. 

Recipient of Notice

• California WARN Act: Requires notice to be provided to affected employees, their representatives, the California Employment Development Department (EDD), and local workforce investment boards.

• Federal WARN Act: Requires notice to be given to affected employees or their representatives, the chief elected officer of the local government, and the state dislocated worker unit.

Penalties

• California WARN Act: Penalties for noncompliance may include back pay and benefits for affected employees for each day the notice is not provided.

• Federal WARN Act: Penalties can include back pay for each day of violation and potential civil penalties.

How Does an Employer File a WARN Act Notice?

Here are the steps employers may take to file a notice under the California WARN Act:

1. Determine Your Applicability: The California WARN Act generally applies to employers with 75 or more full-time or part-time employees. Employers with fewer than 75 employees may still be covered if the total number of employees affected by a layoff or closure exceeds 50 or if the layoffs exceed 33% of the workforce at a single location.

2. Provide Notice to Employees: Employers are required to provide written notice to affected employees or their representatives at least 60 days before the planned layoff, closure, or relocation. The notice must include specific information, such as the effective date of the layoffs, the reasons for the action, and information about available employee assistance programs.

3. Provide Notice to Government Entities: Employers are also required to provide notice to certain government entities, including the California Employment Development Department (EDD) and the local workforce investment boards.

4. File a Notice: Employers can typically file the required notice with the California EDD through its online portal. This notice must include information about the affected employees, the intended actions, and the reason for the actions. The notice should be submitted as early as possible, but no later than when the employee notices are provided.

5. Consider Getting Legal Advice: Filing notices under the California WARN Act can be complex, and failure to comply with the requirements can lead to legal liabilities. Employers may consult with legal counsel specializing in employment law to ensure proper compliance with the state’s requirements.

California WARN Act FAQs

1. What is the California WARN Act?

The California WARN Act is a state labor law that requires employers to provide advance notice to employees and certain government agencies in the event of mass layoffs, plant closures, or relocations. 

2. Who is covered by the California WARN Act?

Employers with 75 or more full-time or part-time employees are covered by the California WARN Act.

3. When is notice required under the California WARN Act?

Employers are required to provide written notice at least 60 days in advance of qualifying events.

4. What events trigger the California WARN Act notice requirement?

Layoffs of 50 or more employees within a 30-day period, plant closures, and relocations at least 100 miles away trigger the WARN Act notice requirement. 

5. Are there exceptions to the 60-day notice requirement?

There are exceptions for unforeseeable business circumstances and natural disasters that might lead to a shortened notice period, but employers are still required to provide notice as soon as possible and explain the reasons for the shortened notice.

6. What are the penalties for non-compliance with the California WARN Act?

Penalties may include back pay and benefits for affected employees for each day the notice is not provided.

7. Does the California WARN Act apply to temporary layoffs or short-term reductions in hours?

Yes, the law applies to temporary layoffs and reductions in hours if they meet the qualifying criteria.

8. Can employers use accrued vacation or paid time off (PTO) during the notice period?

Employers can allow employees to use accrued vacation or PTO during the notice period, but it does not replace the requirement to provide advance notice.

9. Where can I find more information about the California WARN Act?

You can find more information about the California WARN Act on the California Labor and Workforce Development Agency’s website.

What’s Next? Boost Your Chances of Landing a New Job

If you’ve been part of a recent layoff and are searching the job market for your next place of employment, consider revamping your resume to showcase today’s most in-demand skills and candidate qualities. 

Including a well-thought-out skills section of your resume increases your chances of making it through the initial screening process. Your unique combination of skills will differentiate you from other candidates.

Include a wide range of competencies to display your versatility, such as:

• Communication skills
• Technical skills
• Industry-specific skills
• Project management skills
• Language skills
• Leadership skills

To learn more about what skills you should include on your resume to land your next job, read this article next:

Boost Your Chances of Landing a Job by Showcasing These 12 Skills on Your Resume