Warn Notice California

Understanding Warn Notice Requirements in California

California has strict laws regarding advance notice employers must provide employees prior to mass layoffs or plant closures. Known as the California WARN Act, companies with 75 or more full-time or part-time employees are required to provide written notice at least 60 days before a mass layoff, relocation, or termination.

What Triggers California WARN Notice Requirements

The California WARN Act kicks in when any of the following occurs:

• A mass layoff affecting 50+ employees at a covered establishment within a 30 day period
• A layoff impacting 500+ employees within a 30-day span
• A relocation or termination impacting 50-499 workers

So if your company plans to let go a large number of staff or shutter a facility, advance notice must be given. The law is designed to give employees a chance to seek other jobs or training before losing their income.

What Must be Included in a California WARN Notice

There are strict requirements for California WARN notices. At a minimum, the notice must contain:

• A statement that the notice is being issued under the CA WARN Act
• The name and address of the employment site affected
• The name and phone number of a company contact for further info
• A statement about whether the planned action is expected to be permanent or temporary and, if temporary, its expected duration
• The expected date or 14-day period when layoffs will occur
• The job titles and number of affected employees in each job classification

Notices must be delivered to union reps as well as directly to workers who will lose their jobs.

Are There Exceptions to California WARN Act Notice?

There are a few situations where employers may provide less than 60 days advance notice of closures or layoffs:

• The company suffered an unexpected and dramatic business circumstance outside its control
• The layoffs are caused by a natural disaster
• The business closes because it loses a major customer
• A government agency orders the company to shutter operations immediately

In these cases, notice is still required but can be delivered as soon as is practical.

What Are the Penalties for Violating California WARN Act Notice Rules?

If proper notice isn’t given before mass layoffs, companies can face:

• Fines of $500 per day per employee for violations
• Lawsuits from employees
• Having to pay workers up to 60 days additional wages and benefits

So violating California WARN Act requirements can become extremely expensive. It’s critical for larger employers to understand these rules and provide proper advance notifications before engaging in mass terminations or site closures.

Specific Defenses Against California WARN Act Violations

While failure to comply can be costly, there are certain defenses businesses can raise if sued:

• The layoffs couldn’t reasonably have been foreseen 60 days in advance
• Giving notice would have prevented the employer from obtaining capital needed to stay open
• Business circumstances changed dramatically in the 60 day notice period
• The employer reasonably believed the layoffs wouldn’t reach CA WARN Act thresholds

So employers aren’t automatically liable if legitimate reasons existed for not giving full 60-day advance notice.

How Must Warning Notices be Delivered to Employees?

California has rules on how written warnings must be distributed to ensure workers receive them. Options include:

• First class mail to employees’ last known addresses
• Inclusion in pay envelopes or pay stubs
• Electronic means such as email if that’s typical for work communications
• Posting notices at work sites in areas highly visible to all employees

So employers can’t just stuff notices in a random folder or expect employees to find notices posted in obscure locations. Efforts must be made to directly notify individual workers affected by terminations or relocations.

Empathy for Employees Facing Job Loss

Getting notice you’ll soon lose your livelihood can be devastating even when advance warning is given. As an employer, it’s critical to deliver these notices with empathy and offer assistance where possible. Consider providing references, job placement aid, or resume writing workshops. Where practical, see if employees can be transferred to other facilities rather than terminating jobs. Treating people with compassion goes a long way in softening the blow of losing one’s income source.

Final Thoughts

Complying with California’s WARN Act notice rules takes advance planning. But it’s far less costly than facing lawsuits or fines for violations. Consult experienced employment law counsel when planning mass layoffs or facility closures to ensure proper processes are followed. Employees also appreciate getting as much advance notice as possible to find new jobs or career training opportunities before losing their paychecks.