California’s Worker Adjustment and Retraining Notification (WARN) Act ensures employees receive proper advance notice before significant layoffs occur. Knowing these warn notice requirements and your rights can help you take appropriate actions if your employer fails to comply.
We’ll help you to learn:
- When WARN Notices are legally required
- Common WARN Act violations
- What to do if you didn’t receive a WARN Notice
How to find a qualified California employment lawyer
Read further to understand your rights under the California WARN Act.
What Is a WARN Notice in California?
A WARN notice is an employer’s written notification about significant employment changes, including things like a plant closing or mass layoff. It must be provided to employees, state dislocated worker units, and local government officials. Its primary purpose is to allow workers to prepare for job losses and economic impacts. California’s WARN Act (Cal-WARN), detailed in labor code labor code labor code Sections 1400-1408, provides more extensive protections than the federal equivalent.
The WARN notice ensures employees receive crucial details regarding a closing or mass layoff:
- Nature of the employer action (layoff, closure, relocation)
- Expected date of the action
- Company official contact information
- Affected job titles
Providing this notice isn’t optional—it’s a legal requirement in California designed to minimize disruptions to workers’ lives.
When Is a WARN Notice Required by Law?
California law mandates a 60-day required notice for mass layoffs, closures, or relocations, in addition to the federal warn act requirement. Events requiring notices include:
- A mass layoff occurs affecting 50 or more employees within 30 days
- Plant closures affecting any number of employees at covered employers
- Relocations over 100 miles impacting employees, beyond a reasonable commuting distance
The WARN Act requires employers with 75 or more full-time employees (excluding part-time employees) to adhere strictly to these notification procedures. Employees rely on these notices to:
- Secure new employment opportunities
- Manage financial transitions
- Enroll in retraining programs
- Explore continued benefits
Failure to adhere strictly to these requirements results in penalties for employers.
What Triggers a WARN Notice in California?
Understanding what triggers a warning notice in California is crucial for both employers and employees. The California WARN Act has specific thresholds that, when met, obligate an employer to provide the 60-day advance notice, differing from federal law. These thresholds are generally lower and more inclusive than regulations in other states, offering greater protection to California workers.
The California WARN Act threshold applies to:
- Mass Layoffs: Layoffs involving 50 or more employees within 30 days.
- Plant Closures: Any closure significantly reducing operations or ceasing them altogether.
- Relocations: Moving operations 100 miles or more away from the original location.
Note: These triggers are often assessed over a “rolling” period.
For instance, if an employer lays off 30 employees, and then another 25 employees within 30 days, the combined total of 55 employees would trigger a mass layoff, even if neither group alone met the 50-employee threshold.
Thus, the “aggregation” rule prevents employers from circumventing the law by staggering layoffs.
Who Must Receive a WARN Notice?
When a triggering event occurs under the California WARN Act, specific parties must receive the 60-day advance notice. This ensures that not only are affected employees informed, but also relevant government agencies that can provide support services.
Covered Employees
This includes all employees who may reasonably be expected to experience an “employment loss” as a consequence of the mass layoff, plant closure, or relocation.
An “employment loss” can mean:
- An employment termination (other than a discharge for cause, voluntary departure, or retirement).
- A layoff exceeding six months.
- A reduction in an employee’s hours of work of more than 50% during each month of any six-month period.
Beyond individual employees, the employer must also provide notice to:
- Any exclusive bargaining representative (e.g., a union) of the affected employees.
- The California Employment Development Department (EDD).
- The Local Workforce Development Board for the area where the event is occurring.
- The chief elected official of each city and county government within which the termination, relocation, or mass layoff occurs.
Temporary Employment
Employees involved in seasonal employment or temporary roles, unless hired explicitly for a particular project, generally receive the same protections if their employment is ongoing and longer-term.
However, if employees were hired with the explicit understanding that their employment was for a limited period only (e.g., for a specific project with a known end date), they might be exempt from the notice requirements.
Part-Time Employees
Both part-time and full-time workforce employees are counted towards employer thresholds, ensuring all employees affected are considered. Part-time employees experiencing an “employment loss” are also entitled to receive a WARN notice, similar to full-time employees.
This broad coverage ensures that a significant portion of the California workforce is protected, regardless of their full-time or part-time status, as long as they meet the minimum employment duration (e.g., six months in the preceding 12 months) to be counted as “affected employees.”
Common Violations of the California WARN Act
Employers often commit these common violations:
- Insufficient Notice Period: Providing less than the required 60-day required notice.
- Incomplete Notice Content: Omitting crucial details such as the nature of layoffs, the expected date, and the company’s official contact.
- Failure to Notify Required Parties: Neglecting to inform local government and workforce agencies.
- Incorrect Employee Counting: Miscalculating employee numbers, particularly part-time staff, leading to incorrect applicability assessments.
- Layoff Staggering: Attempting to bypass WARN thresholds by staggering layoffs over extended periods.
If you suspect violations, thorough documentation and immediate legal advice are critical.
Important Requirements Under California WARN Act
California WARN Act compliance requires strict adherence to the following:
- Written Notices: Employers must always give notice in writing.
- Specific Content: Notices must clearly state details about layoffs, including dates, affected job titles, and unemployment benefit eligibility.
- Delivery Methods: Notices must be provided via mail, personal delivery, or paycheck enclosures.
- Employer Thresholds: Applicable to businesses with 75 or more full-time employees.
- Aggregation Rule: Employment losses within a 90-day period are aggregated to assess WARN applicability.
- Exceptions: Limited exceptions (unforeseeable business circumstances, physical calamity, or faltering businesses) must be adequately substantiated.
Employers failing to meet these specific guidelines face substantial legal liabilities.
What To Do If You Didn’t Receive a WARN Notice?
If your employer violated WARN Act provisions, you have several legal rights, including the right to potentially award reasonable attorney’s fees.
Employee Rights
If your employer failed to provide a proper WARN notice, your primary employee rights under the California WARN Act include:
- Right to Back Pay: Receive up to 60 days of back pay based on the employee’s final rate.
- Right to Benefits: Claim lost benefits under the employee benefit plan, including medical expenses incurred.
- Right to Sue: File a lawsuit individually or as part of a class action.
Penalties And Damages
The penalties and damages for violating the California WARN Act can be substantial for employers, reflecting the state’s commitment to protecting its workforce:
- Back Pay and Benefits: As mentioned, employers are liable for up to 60 days of back pay and the value of lost benefits for each affected employee.
- Civil Penalties: Civil penalties up to $500 per day for failing to notify local government officials.
- Attorney’s Fees and Costs: If you successfully sue your employer for a WARN Act violation, the court may award you reasonable attorney’s fees and legal costs, which helps ensure access to justice for employees.
The total amount of compensation can be reduced by any wages the employer paid during the violation period or any voluntary, unconditional payments made that were not legally required. The purpose of these penalties is to deter non-compliance and compensate employees for the financial hardship caused by the lack of proper notice.
Legal Next Steps
If you believe your employer violated the California WARN Act, taking prompt and strategic legal next steps is essential:
- Document Everything: Gather all relevant documents related to your employment and layoff. This includes your layoff notice (if any), employment contract, collective bargaining agreement, pay stubs, benefits information, and any communications regarding the layoff.
- Consult an Employment Attorney: This is the most crucial step. A leading California Employment Lawyer specializing in Layoff law will:
- Evaluate your specific situation to determine if a violation occurred.
- Assess the strength of your case and potential damages.
- Explain your rights and options in detail.
- We will guide you through the complex legal process, including filing a lawsuit if necessary.
- Do Not Sign Waivers Lightly: Be very cautious about signing any severance agreements or waivers of rights without first consulting an Attorney. Such documents often require you to give up your right to sue for WARN Act violations in exchange for severance pay.
- Consider Collective Action: If two or more employees were affected by the same lack of notice, a class action lawsuit might be appropriate. This allows a group of employees to collectively pursue their claims, often leading to a more efficient and impactful legal process.
- Contact the EDD: While not a substitute for legal action, you can also report a WARN Act violation to the California Employment Development Department (EDD). They can investigate and provide information about unemployment benefits and other services.
Where Can I Find a California Employment Lawyer for WARN Act Claims?
Hershey Law offers specialized employment lawyers adept at handling WARN Act claims. Our attorneys will assess your situation, gather evidence, and advocate for compensation in courts of competent jurisdiction. Contact us today!