California’s Mini-WARN Layoff Laws
California continues to experience high unemployment rates after the massive layoff of 17500 employees by Microsoft in 2014. Other companies like Gap announced their plans to close 175 stores in the year 2015. Layoffs cause frustration and distress among employees, especially where it’s done without prior notice. Questions like whether they are entitled to any health benefits, insurance, and retirement benefits linger in their minds. Our discussion will deliberate on layoff laws and rights for employees with a primary focus on California laws.
Employers are not restricted to lay off workers, but employees are entitled to notice prior an impending layoff as stated by the federal Worker Adjustment and Retraining Notification (WARN) Act. However, WARN Act only covers large private companies and excludes state, federal and local government employers if:
- The firm is laying off at least 100 full-time workers (who work 4,000 hours or more cumulatively every week).
- The employer owns an industrial or commercial facility that has at least 75 employees in employment.
Note that WARN Act does not cover all kinds of layoffs or company closing. It qualifies if:
- The mass layoff involves loss of 500 or more full-time jobs or 50-499 full-time employment or if the numbers of workers laid off make up at least 33% of the active force.
- The plant closing results in loss of jobs of 50 or more full-time workers within a 30-day period.
California doesn’t have specific layoff rights for employees, but it expands on the requirements provided by the federal WARN Act. It provides a broader coverage thus protecting the affected employees and their families. California’s mini-WARN applies in the following situations:
- Mass layoff: i.e. laying off at least 50 workers within a period of 30 days.
- Relocation of the closing plant (industrial or commercial plant) with at least 75 workers to a location situated at least 100 miles away.
- The closing of a plant with at least 75 employees.
Notice
Both California mini-WARN and the federal WARN require employers to give a 60-day notice prior layoffs. However, unionized employees don’t need individual notifications rather companies notify their bargaining representatives who inform the affected employees. According to California mini-WARN Act (California Labor Code Section 1401), the elected official of the city and the county as well as the Local Workforce Investment Area also receive the notice.
Employer liability
Any employer who violates the mini-WARN Act is liable to a civil penalty of $500 per day. He is also responsible for any medical expenses incurred by employees that would have been covered under the employee benefit plan.
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