Understanding Your Rights: California WARN Act and Mass Layoffs
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- Understanding Your Rights: California WARN Act and Mass Layoffs
The California WARN Act is a law that protects employees facing sudden layoffs. Did your employer break the law?
Laid off? The California WARN Act is a law that gives you rights. The law is not optional - yet some employers don’t follow it. We discuss the WARN Act, what it does, and what it gives you.
Losing your job is one of the most stressful events in life, especially when it happens unexpectedly. It’s scary, disorienting, disruptive, and often infuriating. This is especially true when your employer could have taken some steps to make the layoffs less disruptive. To combat some of the shock and disruption of a layoff, California passed a law called the California Worker Adjustment and Retraining Notification (WARN) Act that provides strong protections for employees in these situations.
If you’ve been laid off and you live in California, you have rights and you have options. You also have Consumer Attorneys at the ready to talk to you and help you out however we can. In this guide, we’ll walk you through your rights under the California WARN Act, explain how it differs from the federal WARN Act, and give real-world examples to help you better understand how the law applies. If your employer hasn’t complied with the law, you may be entitled to significant compensation, and contacting an experienced consumer lawyer or California employment lawyer is a critical step in asserting your rights.
What Is the WARN Act in California?
The California WARN Act is a state law designed to protect employees from sudden layoffs by requiring covered employers to provide a 60-day advance notice before a mass layoff, plant closure, or major relocation. The goal of this law is to give workers enough time to find new employment, adjust their financial situation, or seek retraining.
The WARN Act (California) expands on federal protections to cover more employees and situations, ensuring that even smaller layoffs are included in its scope. Employers who violate the law face stiff penalties, and employees affected by non-compliance are entitled to compensation, including back pay and benefits.
What Triggers the WARN Act in California?
Under the WARN Act California 2023 and 2024, certain events trigger an employer’s obligation to provide advance notice. These include:
- Mass Layoffs. If an employer lays off 50 or more employees within a 30-day period at a single location.
- Plant Closures. When an employer shuts down an entire facility, resulting in the termination of any number of employees.
- Major Relocations. When a business moves its operations more than 100 miles away, affecting any number of employees.
The California WARN Act threshold is lower than the federal WARN Act, making it easier for workers to qualify for protection. For instance, while the federal WARN Act only applies to companies with at least 100 full-time employees, the California WARN Act applies to businesses with 75 or more full-time or part-time employees. This means more workers are covered under California’s law, offering more comprehensive protection.
Your Rights Under the California WARN Act
You have several important rights if you’re an employee affected by a mass layoff, plant closure, or relocation that triggers the WARN Act (California). These include:
| Right/Compensation | Description |
|---|---|
| 60 Days’ Notice | Employers must give affected employees, the state's Employment Development Department (EDD), and local government officials at least 60 days written notice. This requirement helps employees and communities prepare for the economic impact of layoffs or business closures. |
| Compensation for Lack of Notice | If your employer fails to give you adequate notice, you may be entitled to up to 60 days of back pay. This also includes compensation for the value of lost benefits such as health insurance. The compensation is typically calculated based on your highest pay rate over the last three years or your final pay rate—whichever is higher. |
| Extended Health Benefits | When an employer violates the notice requirement, they may also be required to continue paying for health benefits during the 60-day violation period. This ensures employees can maintain essential health coverage while transitioning to new employment or alternative plans. |
| Civil Penalties for Employers | Employees may be entitled to additional civil penalties if the employer does not comply with notice requirements. These penalties can be as high as $500 per day for each day the employer was in violation. These penalties serve as a deterrent to encourage timely notifications. |
| Attorney’s Fees and Costs | In some cases, you may be entitled to recover attorney’s fees and legal costs if you successfully sue your employer for failing to provide proper notice. This ensures that employees can seek justice without fearing significant legal expenses. |
| Unemployment Benefits Eligibility | Even if you're entitled to compensation from your employer, you can still apply for unemployment benefits while waiting for back pay. These benefits can help ease the financial burden during the gap period. |
| Relocation Assistance | If your company is relocating rather than closing, and it requires you to move a significant distance, you may be entitled to relocation assistance, depending on your state’s laws or your employment contract. This can help cover moving expenses and other costs associated with relocation. |
| Punitive Damages | In cases where the employer's violation of the law is particularly egregious, courts may award punitive damages. This is intended to punish the employer for bad behavior and discourage others from doing the same. |
| Reinstatement | In certain situations, employees may have the right to be reinstated to their former positions if their layoffs violated notice laws, especially if the layoff was part of a wrongful termination or discriminatory action. |
These rights provide vital financial support when you're faced with sudden job loss. It’s crucial to work with a California employment lawyer who can help ensure you get the compensation you deserve if your employer breaks the law.
Examples of WARN Act Violations
To better understand how the WARN Act California works in real life, here are a few scenarios where the law would come into play:
Example 1: Mass Layoff
Imagine you’ve worked at a large retail distribution center with 150 employees. Due to a sudden downturn in business, the company lays off 80 workers within a 30-day period without any prior notice. Under the California WARN Act, the employer was required to provide 60 days' notice before the layoffs began. If they fail to do so, you and the other laid-off workers may be entitled to 60 days of back pay, benefits, and civil penalties.
Example 2: Plant Closure
You’ve worked at a manufacturing plant in California for several years. The company decides to close the plant and move operations to another state. You find out about the closure only two weeks before it happens. Under the California WARN Act, the company should have provided 60 days' notice before closing. If they failed to meet this requirement, you might be eligible for compensation for the wages you would have earned during that period, plus the cost of any lost health benefits.
Example 3: Relocation
Let’s say you work for a tech company in Silicon Valley. Your employer decides to relocate the entire operation to Texas, 1,500 miles away. They tell you only 30 days before the move. Under the California Worker Adjustment and Retraining Notification Act, your employer must provide 60 days’ notice for more than 100-mile relocations. You may have grounds for legal action and compensation if they don't.
Exceptions to the WARN Act in California
While the California WARN Act is comprehensive, there are a few exceptions where the 60-day notice may not be required:
- Project Completion. If employees knew their job would end upon completion of a specific project (e.g., in construction or film production), the employer may not need to provide notice.
- Seasonal Employment. Jobs that are inherently temporary, such as farm work or holiday retail positions, are exempt from the notice requirement.
- Natural Disasters or Acts of War. No notice is required if the layoff or closure is due to a natural disaster or act of war.
- Capital-Seeking Employers. If an employer actively seeks capital or new business and believes in good faith that giving notice would ruin their chances, they might be exempt from providing notice as long as they notify the Department of Industrial Relations.
Even in these exceptions, the rules can be complicated. A California employment lawyer can review your case to see if your employer was genuinely exempt from providing notice.
WARN Act Requirements for Remote Employees
One common question is whether remote employees are protected under the California WARN Act. The answer is yes. If your employer meets the California WARN Act threshold, the law applies regardless of whether you work at the company’s physical location or remotely. As long as you meet the qualifications, your rights are protected.
The Role of the WARN Act in Protecting Employees
The California Worker Adjustment and Retraining Notification Act protects employees from the devastating effects of mass layoffs, closures, and relocations. By giving employees advance notice, the law provides time to prepare and seek alternative employment. But when employers violate the law, they put workers in a financially precarious position.
This is where the law steps in to help. If your employer fails to comply with the WARN Act (California), they may face serious financial consequences, and you can take legal action to recover the wages and benefits you’ve lost.
Why Contact Consumer Attorneys?
If you’ve recently lost your job due to a mass layoff, plant closure, or relocation and believe your employer violated the WARN Act requirements in California, it’s essential to act quickly. The law offers substantial protections, but you need the right legal representation to ensure your rights are fully enforced.
At Consumer Attorneys, our experienced legal team of consumer lawyers is here to fight for you. We understand the emotional and financial strain of job loss, and we’re dedicated to helping you get the compensation you deserve. Don’t wait—reach out to us today for a free consultation.
Frequently Asked Questions
The federal WARN Act doesn’t require employers to provide severance pay, but they must give 60 days’ notice before a mass layoff or business closure. If an employer fails to provide this notice, employees can receive compensation in the form of back pay and lost benefits for each day of violation—up to 60 days. This back pay is usually based on the employee's highest wage in the last three years or their most recent pay rate, whichever is higher. Some states, like California, have their own WARN laws that provide additional protections and may impose stricter requirements. To fully understand your rights, especially regarding severance, contact Consumer Attorneys.
Yes, you can collect unemployment benefits during the WARN notice period in California, even if you are entitled to back pay or compensation under the WARN Act. While the WARN Act requires employers to provide notice or pay in lieu of notice, unemployment benefits are designed to support you while you search for a new job. Remember to accurately report any wages or payments you receive during the WARN period, as it could affect your eligibility or benefit amount. For guidance on how your unemployment benefits and WARN compensation interact, it’s always a good idea to consult with an attorney who can help you navigate California’s specific rules.
Yes, you can start a new job during the WARN period, but it may impact your compensation from your previous employer. If your employer violated the WARN Act and owes you back pay for the 60-day notice period, any wages you earn from a new job during that time could reduce the compensation you’re entitled to. It’s essential to understand how these earnings may affect your WARN settlement so you don’t inadvertently lose out on money owed to you. Consulting with a consumer protection attorney can help ensure you receive the maximum compensation and avoid legal missteps while transitioning into new employment.
Yes, California’s WARN Act has several exceptions. Employers may not be required to give the 60-day notice if layoffs occur due to “unforeseeable business circumstances,” natural disasters, or a faltering company that is actively seeking capital or business to prevent closure. Additionally, WARN notice may not be required if layoffs or closures result from strikes or lockouts. Temporary employees, seasonal workers, and employees hired with the understanding that their short-term jobs may also be exempt. Despite these exceptions, employers must still meet specific criteria for an exception to apply. If you believe your employer violated WARN, it's crucial to consult a consumer protection attorney to explore your rights and potential compensation.
Daniel Cohen is the Founder of Consumer Attorneys. Daniel manages the firm’s branding, marketing, client intake and business development efforts. Since 2017, he is a member of the National Association of Consumer Advocates and the National Consumer Law Center. Mr. Cohen is a nationally-recognized practitioner of consumer protection law. He has a we... Read more
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