Warn Act California 2023

The Warn Act in California 2023: What Workers Need to Know

The California Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to provide a 60-day advance notice to affected employees of certain plant closings and mass layoffs. With recent economic shifts, what does this mean for California workers in 2023? Let’s break it down.

What is the Purpose of the WARN Act?

The WARN Act aims to give workers and their families sufficient notice time to transition between jobs, enter skills training programs, adjust finances, and seek new employment opportunities when there are upcoming layoffs. It provides a cushion for the community to absorb the impact of job losses as well.
Essentially, the WARN Act says if a business is making cuts that affect a large number of people, they can’t just drop the bomb and walk away. There needs to be a heads up.

Which Employers Are Covered Under WARN?

The California WARN Act applies to any business enterprise that has 75 or more full-time or part-time employees. It covers private, for-profit businesses as well as nonprofits. The law does not apply to public agencies or businesses that shut down due to natural disasters.
So if you work for a medium or large-sized company in the state, WARN likely applies to your employer.

When is a WARN Notice Required?

Covered employers must provide a 60-day WARN notice if they are planning either:

• A mass layoff affecting 50+ employees at a single site of employment
• A layoff impacting 500+ employees company-wide
• A plant closure that results in an employment loss for 50+ workers

The notice goes out to union reps as well.

What Needs to Be Included in the Notice?

The WARN notice must contain specific details like:

• The name and address of the employment site affected
• The name and phone number of a company contact for more info
• A statement indicating whether the planned action is expected to be permanent or temporary and why
• The expected date the plant closure or mass layoff will start
• The job titles and number of affected employees in each job classification

The more transparency from employers, the better in these situations.

Are There Exceptions to Providing Notice?

There are some exceptions where employers may order a mass layoff or closure without the full 60-day notice:

• The company tries to secure new capital or business and reasonably believes the notice would ruin the deal
• They face an “unforeseeable business circumstance” outside their control (this does not include typical seasonal changes or a drop in sales/profits)
• A natural disaster requires closure of operations

Even with these exceptions, employers must still give as much advance notice as possible.

What Are the Penalties for Violating WARN?

Companies who violate the 60-day notice requirements under the WARN Act face hefty penalties:

• Back pay and benefits for each day the notice was not provided (max 60 days)
• Fines of $500 per day per employee where notice was not given
• Potential lawsuits from employees, unions, local governments or the state itself

So employers have a strong financial incentive to comply, in addition to doing right by their workers!

Does the WARN Act Guarantee Severance Pay?

No, the WARN Act does not require any type of severance package for employees who lose their jobs. It simply mandates the notice period itself. Some employers may choose to provide severance on top of WARN requirements, but they are not obligated to do so.

How Might Economic Changes Impact WARN Notices in 2023?

With warnings of a potential recession ahead, WARN notices may spike across California in 2023. As businesses look to cut costs through layoffs and downsizing, they need to remember the notice rules.
Employees should also be aware of their rights under WARN if they face job loss. Review the details of any notice closely and consult an employment lawyer with questions.
While lawful, abrupt job cuts deal a major blow to households. The hope is the WARN Act’s requirements soften the landing for those affected.

Key Takeaways

The WARN Act mandates larger California employers to provide a 60-day advance notice regarding upcoming plant closures and mass layoffs. It offers protections for employees faced with sudden job loss.
With a possible economic downturn looming in 2023, WARN notices could increase across the state. Both employers and employees should understand the law’s notice requirements and penalties for violations.
The DOL offers more information on the federal WARN Act as well. Reach out to an employment lawyer if you have questions on your specific situation.