Warn Notices California

The Ins and Outs of Warn Notices in California

California’s WARN Act requires employers to provide employees advance notice of certain plant closings and mass layoffs. This allows workers time to seek alternative jobs and make lifestyle adjustments. But what exactly constitutes a “mass layoff” under California law, and what are employers’ responsibilities? This article breaks it down.

What Triggers California’s Warn Notice Requirements?

Under California’s WARN Act, covered employers must provide 60 days’ written notice ahead of a mass layoff, relocation, or termination. A “mass layoff” occurs when, during any 30-day period:

• 50+ employees are laid off at a covered establishment
• 50+ employees have their hours cut by 50%+ at a covered establishment

So if Company X, which has 100+ employees, lays off 60 people in April 2024–it triggers the Warn Act’s requirements. The employer would’ve needed to notify those impacted employees back in February.

Which Employers Are Covered?

California’s Warn Act applies to private for-profit businesses with 75+ full- or part-time workers. That includes:

• Manufacturers
• Commercial printers/publishers
• Healthcare institutions
• Various service providers

So a 50-employee auto shop wouldn’t be covered. But a 150-employee hospital would need to comply with the law’s notice rules.

What Are the Notice Requirements?

When a mass layoff is pending in California, the Warn Act requires employers to give a 60-day written notice to:

• All hourly/non-exempt employees being terminated
• The state’s Workforce Development Board
• The chief elected official of each city/county government within which layoffs will occur

Notice must include specifics like:

• • The planned layoff start/end dates
  • Job titles/departments impacted

• The number of affected employees in each job classification
• Contact info for the employer official providing more info

So employers can’t just vaguely announce upcoming layoffs. The law requires details surrounding why/how many workers will lose jobs or work hours.

What Are Employers’ Other Responsibilities?

Along with 60 days’ advance written notice, California employers planning mass layoffs must:

• Notify the union representing affected employees
• Maintain records about terminated workers for three years post-layoff
• Provide a public statement about the layoff to two major media outlets in the nearest metropolitan area

So simply handing pink slips to workers isn’t enough. There’s substantial administrative work involved in complying with California’s Warn Act.

What About Exceptions to the Notice Rules?

While rare, there are limited exceptions where an employer may provide less than 60 days’ notice, including:

• Unforeseeable business circumstances: An unexpected business/economic downturn that makes providing 60 days’ notice impossible
• Natural disasters: Events like earthquakes, floods, or droughts directly impacting the business
• Faltering companies: An employer actively seeking capital/business to prevent shutdown, where advance notice would preclude those opportunities

But the exceptions don’t apply just because providing notice is inconvenient or burdensome. And even then, employers must give as much advance notice as possible.

What Are the Consequences for Violating the Warn Act?

If an employer lays off 50+ employees in California without proper notice, impacted workers can sue for:

• Back pay for each day the notice wasn’t provided (e.g. 60 days’ worth)
• The value of lost benefits like healthcare, retirement contributions, etc.

Workers have up to one year post-termination to sue in civil court. And they can potentially win big, with no cap on damage awards. So skirting California’s notice rules can prove costly for employers.

Key Takeaways

While complex, California’s Warn Act aims to protect workers facing sudden unemployment. Key points for employers to remember include:

• The law covers for-profit businesses with 75+ employees
• Laying off 50+ workers within 30 days triggers notice requirements
• Employers must provide 60 days’ written notice to employees, government bodies, and unions
• Exceptions are rare and allow less notice, not none
• Violations open employers up to uncapped lawsuit damages

By understanding California’s unique protections and planning accordingly, employers can ensure compliance–and do right by vulnerable workers facing layoffs.