Layoff Laws in California
Layoffs in California are an inevitable part of employment, especially for employers that decide to do so in today’s tough economy. From an emotional standpoint, letting go of employees is a very difficult decision. Apart from the dilemma that employers face before selecting which workers are going to be laid off, the chosen employees would have to start from scratch; that is, find new jobs to support themselves and their families.
In California, the task of arriving at an employment decision such as a layoff is already difficult, thanks to the prevailing rules on it. Obviously, failure to abide by those rules may result in employers facing lawsuits from laid-off employees.
Layoff rules in California
Basically, California employees are considered “at will,” which means that they can be terminated at any time and for any reason, as long as there is a legitimate reason for doing so. The same concept applies in layoffs, where employers must adhere to their company policies and that the decision should not be motivated by discrimination. Likewise, salary should not be a deciding factor in subjecting an employee to a layoff.
Moreover, under the Worker Adjustment and Retraining Notification Act (WARN), employers with full-time workers and also planning to lay off at least 50 people must provide “WARN” notices 60 days in their workplaces. Such notices must be posted or issued 60 days before the date of the layoff. However, there is a California version of this law, in which part-timers have been included in the WARN notices. “Mass layoffs” have also been defined as a layoff of at least 50 employees, part-time or full-time, within 30 days.
Another important aspect of California layoffs is on final pay. Laid-off workers have the right to collect their wages, including accumulated vacation pay, right after they have been terminated, as stipulated under the state’s Labor Code. But then, there are exceptions, depending on the type of job industry.
For example, seasonal employees, such as those in the fruit canning and packing industry, must obtain their final pay within 72 hours after they have been laid off. Similarly, those laid off from jobs in the motion picture industry can collect their wages the day after the layoff.
Laid-off employees are also covered by health insurance, thanks to the Consolidated Omnibus Budget Reconciliation Act (COBRA), and its state equivalent, the Cal-COBRA. Said insurance coverage must be given by the employer up to 36 months from the layoff, provided that the employees will take charge of their entire premium.
Seeking legal action in relation to layoffs
While employees are considered “at will,” they are still entitled to their rights to pay and compensation, as well as be terminated under legal grounds. If one is laid off on the basis of his or her race, sex, religion, or any other protective characteristics defined under the existing California employment laws, then it is best that he or she must seek legal assistance from an expert employment discrimination lawyer.
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