Warn Act Ca

The WARN Act in California – Protecting Workers from Mass Layoffs

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires certain employers to provide 60 days’ advance notice of plant closings and mass layoffs. The purpose is to give workers time to seek alternative jobs, enter skills training programs, or if eligible, seek early retirement.
California has its own mini-WARN Act which provides broader protections than the federal law. Let’s take a look at how the WARN Act works in California, who’s covered, what triggers notice requirements, and what penalties apply for violating the law.

What is the Purpose of the CA WARN Act?

The California WARN Act requires covered employers to give a 60-day advance notice any time there is a mass layoff, relocation, or termination at a covered establishment. This allows workers:
Time to find new jobs or seek training
Ability to make financial plans for transition
Resources through rapid response programs
Essentially, it helps mitigate the hardship on workers, families, and communities dealing with unexpected job loss.

Who is Covered by California’s WARN Act?

The CA WARN Act covers:
Private for-profit businesses with 75+ full or part-time workers (federal law is 100+ workers)
Public and quasi-public entities
Certain nonprofits or organizations serving business interests
So small businesses are exempt, but mid-size and large employers need to comply, regardless of industry.

What Triggers WARN Notice Requirements in California?

Advance notice must be given for:
Mass layoffs – for 6+ months, affecting 50+ employees at a covered establishment
Relocations – moving all or a portion of operations over 100 miles away
Plant closings – shutting down all or a portion of operations

Exceptions Where Notice is Not Required

There are a few exceptions where employers do not need to give 60 days advance notice:
Natural disasters
Layoffs due to unforeseeable business circumstances
Faltering companies that were actively seeking capital or business
However, the business still needs to demonstrate that one of these limited exceptions applies.

What Are the WARN Notice Requirements in California?

For a covered trigger event, employers must provide a 60-day written notice containing:
Description of the planned event (i.e. layoff, relocation, etc)
Effective date of the action
Job titles and number of affected employees
Name and contact for additional info
This notice must be provided to:
Affected workers
Union reps
Local government officials
California’s Employment Development Dept

What If Notice is Less Than 60 Days?

If advance notice is not feasible, the employer must give as much notice as possible. This could mean just a few days or weeks if the situation prevents 60 days.
When less than 60 days is given, the employer also needs to demonstrate that business circumstances prevented meeting the full notice requirement.

What Are the Penalties for Violating CA’s WARN Act?

If an employer conducts a mass layoff or closure without proper notice, penalties can apply. Workers can bring civil lawsuits to recover:
Back pay for each day the notice was deficient
Value of lost benefits like healthcare premiums
Attorney fees and legal costs
On top of worker lawsuits, the employer may face fines up to $500 per day for each employee – up to a total of $10,000 per violation.
So penalties can add up fast, especially for larger layoffs. That’s why it’s essential for covered employers to understand their responsibilities.

How Can Employers Comply With the WARN Act?

Here are some tips for California employers to stay compliant:

• Know if your business is covered based on size and workers
• Understand what events trigger notice requirements
• Allow lead time for proper 60-day advance notice
• Document unforeseeable circumstances that may limit notice
• Work with legal counsel for notice templates

It also helps to monitor business performance so potential layoffs or closures aren’t a surprise. This gives time to build out a thoughtful workforce plan while accounting for WARN Act obligations.
The key is being proactive, organized, and keeping workers informed about developments that may impact their jobs. Savvy employers see the WARN Act as not just a legal requirement, but as an ethical duty.

Get Help With Your Workforce Changes

Restructuring your workforce or closing locations prompts many legal considerations around employee rights. Consulting qualified legal counsel can help you make plans that are both prudent for the business and compliant with important laws like final pay, the WARN Act, COBRA, and other regulations.