What Is a WARN Notice in California?

The California WARN Act requires businesses with 75 or more employees to provide 60 days’ notice before mass layoffs, plant closures, or relocations. Noncompliance can lead to fines, back pay, and healthcare costs, making adherence essential for legal and financial stability.

By Douglas Wade, Attorney

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Table of Contents

1. How does the California WARN Act work?

2. What is Required by the California WARN Act?

3. Employers Covered by CA WARN

4. Requirements for California’s WARN Notice Program

5. The Cal WARN Act and What It Does

6. When is the California WARN Act Relevant?

7. Exclusions from the California WARN laws

8. The California WARN Act Penalty

9. Shared Work Opportunities in California

10. Layoffs and Offboarding

How does the California WARN Act work?

To safeguard workers in the event of major workforce changes like plant closures or layoffs, HR managers in California should familiarize themselves with the California WARN Act. This concise guide provides an overview of the Act, including its purpose, affected parties, notice requirements, implementation dates, and consequences for noncompliance. Here’s a simple rundown to help HR professionals stay compliant and protect employees when major changes are happening at work.

Employees are safeguarded by the Worker Adjustment and Retraining Notification Act (WARN) of California during significant shifts in the workforce. While the federal WARN act does offer some protection, several states, including California, Illinois, New Jersey, and Wisconsin, have additional regulations. This law ensures that certain businesses in California provide adequate notice to their employees in the event of a closure, mass layoff, or relocation. Whenever a covered business undergoes a substantial change, employers are required to adhere to both the federal WARN and the state WARN.

What is Required by the California WARN Act?

An organization needs to meet the criteria of a “covered establishment” in order to be subject to the California WARN Act. Any business that currently employs or had 75 or more full- or part-time workers in the preceding calendar year is considered a covered establishment. A 12-month period preceding the required notice date must contain at least six months of employment for employees.

Employers Covered by CA WARN

Any business or industrial facility that employs the required minimum number of people is considered a covered establishment. The Act covers a wide range of companies that have hired more than 75 people in the past year. Because it safeguards a diverse group of employees, the Act is relevant to a wide range of businesses.

Requirements for California’s WARN Notice Program

For plant closures, layoffs, or relocations that fall under the purview of the California WARN Act, employers are required to give 60 days’ notice. Simply adhering to the regulations laid out by the federal WARN Act is not enough. Local Workforce Development Board notifications are mandatory in addition to federal WARN notifications. The top elected official in each applicable California county and city must also receive them.

The California WARN Act goes above and beyond what is required by federal law. Businesses must notify the local workforce development board and the highest elected official in every municipality and county in which the changes are taking place. By adding this additional layer of notification, not only are impacted employees kept informed, but local authorities are also prepared for any potential community impact.

For employers to fulfill their legal responsibilities and keep the peace with their staff and surrounding areas during times of transition, it is critical that they adhere to these regulations.

The Cal WARN Act and What It Does

Certain workforce-related events activate the California WARN Act. Relocations of at least 100 miles that impact any number of employees, plant closures that affect any number of employees, and layoffs involving at least fifty workers within 30 days all qualify as triggers. This is what sets off the WARN Act, which safeguards workers by giving them advance warning of material changes to their employment status and providing them with legal protections in such cases.

The following situations constitute an activation of the Act:

Closure of Plants: In the event that a plant closure occurs that impacts multiple employees, the California WARN Act comes into play.

Mass Layoff: The Act is activated when fifty or more employees are let go within a thirty-day period, irrespective of the workforce’s percentage.

Relocation: Any number of employees affected by a move of 100 miles or more are subject to the Act.

When is the California WARN Act Relevant?

The California WARN Act specifies when it is applicable and makes exceptions for other situations. Employers with seventy-five or more full-and part-time workers in the previous twelve months are considered “covered establishments” for the purposes of the Act. To be eligible, workers must have worked for at least six months in the twelve months prior to the required notice date, just like under the federal WARN Act.

All of the above situations constitute triggers for the Act.

Exclusions from the California WARN laws

The following situations exempt California from the WARN Act:

The Act does not apply in cases where a closure or layoff occurs as a result of the completion of a specific project or task. Employers in sectors and with Wage Order coverage who hired workers with the understanding that their employment would be temporary are exempt from this rule.

Workers engaged for a specific season are exempt from the standard notice requirements. It is understood when they are hired that their position is temporary.

In the event of a mass layoff, relocation, or plant closure due to a physical disaster or act of war, no notice is necessary.

Employers may not be required to provide notice prior to relocating or firing employees in specific situations where they are actively pursuing capital or business and have notified the Department of Industrial Relations (DIR). This is due to the fact that providing notice may impair their ability to acquire the necessary funds or clientele.

In order to comply with California’s WARN Act and meet its requirements, employers must be aware of these situations and exceptions.

The California WARN Act Penalty

Employers face severe repercussions if they violate the California WARN Act. Their failure to comply with the regulations could result in a daily fine of $500. Naturally, impacted workers also have rights. They may be eligible for back pay equal to either their final salary or the average of their first three years of employment, whichever is greater. In addition, businesses might end up footing the bill for employees’ medical care that their health insurance would have covered otherwise. This duty continues for the duration of the infraction. This could be as short as 30 days or as long as 60 days, whichever is shorter.

These fines highlight the significance of employers being familiar with the California WARN Act. Failure to do so could cause the business legal and financial issues. Human resources managers are responsible for ensuring that the organization abides by regulations, maintains transparency in all processes, and stays out of legal trouble. In order to manage workforce changes in a way that respects employees’ rights and needs, HR professionals must have a thorough understanding of the Act.

Shared Work Opportunities in California

If your business is experiencing a dip in production or customer demand, the Work Sharing Program in California could be a good fit. Instead of temporarily laying off workers, the program gives you another option. It’s a strategy for retaining skilled workers in various sectors. The company will be able to swiftly recover when things improve. In spite of having their hours and pay cut, employees are still eligible for unemployment benefits, can retain their jobs, and are better able to deal with financial hardships. Despite the economic downturn, this flexible plan has benefited both employees and employers.

Layoffs and Offboarding

Human resource managers must be well-versed in the WARN Act and ensure compliance in order to promote transparency and fairness during workforce transitions. Human resources professionals help foster a positive work environment and ensure compliance with regulations by protecting employee rights and promoting open communication. The next critical step after telling workers they will be laid off is to start the offboarding process.

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What Is a WARN Notice in California?

How does the California WARN Act work?

What is Required by the California WARN Act?

Employers Covered by CA WARN

Requirements for California’s WARN Notice Program

The Cal WARN Act and What It Does

When is the California WARN Act Relevant?

Exclusions from the California WARN laws

The California WARN Act Penalty

Shared Work Opportunities in California

Layoffs and Offboarding

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