What impact does the Executive Order have on an employer’s ability to close an establishment (temporarily or permanently) because of COVID-19?

Recognizing that employers have had to rapidly close down their businesses to prevent or mitigate the effects of the COVID-19 pandemic, but have not been able to provide their employees the usual advanced notice of at least 60 days, the Executive Order provides a conditional suspension of the usual 60-day notice requirement.

For purposes of the California WARN Act, covered establishments must provide written notice prior to:

• A mass layoff:  a layoff during any 30-day period of 50 or more employees at a covered establishment (Lab. Code § 1400(d).)

• A relocation: the removal of all or substantially all of the industrial or commercial operations in a covered establishment to a different location 100 miles or more away (Lab. Code § 1400(e).)
• A termination: the cessation or substantial cessation of industrial or commercial operations in a covered establishment (Lab. Code § 1400(f).)

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