What Rights Do Employees Have If Laid Off Without Notice? Understanding WARN Act Requirements in California

California law provides important protections for employees who are laid off without proper notice. Under the federal Worker Adjustment and Retraining Notification (WARN) Act and California’s more stringent version of the law (Cal-WARN), certain employers must provide advance notice before conducting large-scale layoffs or closures. Employees subjected to mass layoffs without proper notice may be entitled to damages, back pay, and other remedies.

Who Is Covered Under the WARN Act and Cal-WARN?

Both the federal WARN Act and California’s WARN Act (Cal-WARN) apply to specific employers and cover particular types of employment actions.

Federal WARN Act Coverage:

• Applies to employers with 100 or more full-time employees.
• Covers mass layoffs, plant closures, and significant reductions in workforce.

California WARN Act Coverage (Cal-WARN):

• Applies to employers with 75 or more full- and part-time employees.
• Covers terminations, relocations, or layoffs affecting 50 or more employees within a 30-day period.
• Applies regardless of whether employees are full-time or part-time.

Cal-WARN applies more broadly than the federal version, especially in the types of employment actions covered and the number of employees an employer must have to be subject to the law.

Notice Requirements Under the WARN Acts

Employers covered by the WARN Act or Cal-WARN are legally required to give affected employees advance written notice prior to a mass layoff, termination, or relocation. The length of the required notice and the parties that must be notified can vary under the federal and California laws.

Federal WARN Act Notice Requirements:

• Employers must give a minimum of 60 calendar days’ written notice.
• Notice must be provided to affected employees or their representatives, the state’s dislocated worker unit, and local governments.

California WARN Notice Requirements:

• Employers must provide at least 60 days’ written notice before a covered employment action.
• Notice must be sent to affected employees, the California Employment Development Department (EDD), the local workforce investment board, and the chief elected official of the local government where the employment site is located.

Notice must include detailed information such as the expected date of the employment action, whether the action is permanent or temporary, and the affected job titles and number of affected employees.

Exceptions to WARN Act Requirements

There are limited exceptions under which employers do not have to provide the full 60-day notice. However, these exceptions are narrowly interpreted, and the burden is on the employer to prove they apply.

Federal WARN Act Exceptions:

• Faltering Company: Applies only to plant closings when the employer is actively seeking capital or business to avoid closure and reasonably believes that advance notice would jeopardize its ability to secure funding.
• Unforeseeable Business Circumstances: Applies when events were not reasonably foreseeable at the time notice would have been required, such as a sudden economic downturn or unexpected market change.
• Natural Disaster: Applies in the case of floods, earthquakes, or other natural disasters that prompt immediate plant closings or layoffs.

Even when these exceptions apply, employers must give as much notice as is practicable and must provide a written statement detailing the reason for the shortened notice.

California WARN Act Exceptions:

• Cal-WARN previously did not recognize most federal exceptions, though recent Executive Orders have temporarily allowed flexibility during state-declared emergencies, such as COVID-19, when specific criteria are met.

What to Do If Your Employer Violated the WARN Act

If you were laid off without the required notice under the WARN Act or Cal-WARN, you may have the right to recover damages and compensation. Violations can result in the employer being liable for:

• Up to 60 days of back pay and benefits for each affected employee.
• Civil penalties for failure to properly notify state and local officials.
• Attorney’s fees and court costs, if litigation is necessary.

Steps to Take:

• Gather documentation, including your termination letter, pay records, and any communications regarding the layoff.
• Confirm the size of your employer’s workforce and the number of employees laid off.
• Consult with an employment attorney who practices in California to evaluate whether your employer was required to provide notice and whether any exceptions apply.

The attorneys at Miracle Mile Law Group focus exclusively on employment law and can help determine whether your rights under the WARN Act or Cal-WARN have been violated. If so, we will aggressively pursue the compensation you are owed.

Conclusion

California workers have strong legal protections when facing mass layoffs or job terminations due to business closures or relocations. The WARN Act and Cal-WARN provide critical rights, including the right to advance notice and compensation when that notice is not properly given. If you have been laid off without notice and think your employer may have violated the WARN laws, contact Miracle Mile Law Group for a free consultation to protect your legal rights under California law.