On January 1, 2003, the California Layoff Protection Act took effect. This law is modeled on the federal WARN Act (Worker Adjustment and Retraining Notification), which requires certain employers provide its employees 60-day notice of a layoff or closing.
Details on the two laws: Federal WARN California Layoff Protection Length of notice 60 days 60 days When the law applies: when a covered employer has a mass layoff or a plant closing Covered employer 100 employees over past 12 months (an employee is a person employed at least 6 of last 12 months 75 employees Mass layoff A layoff of 50 or more full-time employees A layoff of 50 or more employees Plant closing A plant closing resulting in layoff of 50 or more full-time employees at a single site, during a 30-day period A termination or substantial termination of activity at a site resulting in layoff of 50 or more people Exemptions: a company may be all or partially exempt if it can prove the following Unusual circumstances Unforeseeable business circumstance; natural disaster; company reasonably believed giving notice would affect chances of obtaining capital or business that it was actively seeking Act of physical calamity or war; company reasonably believed giving notice would affect chances of obtaining capital or business that it was actively seeking Project-based or seasonal employment Temporary facility or completion of a particular project if employees hired with that understanding Completion of project in broadcasting, motion picture, or certain construction, drilling, logging and mining industries, or seasonal employment, if employees were hired with that understanding Notice: notice to workers must be mailed to current address or inserted in paycheck Who gets notice All employees whose employment may be affected; state dislocated worker unit; union officer; CEO of local government Same as federal
The California Act improves on WARN in two main ways: it covers smaller employers and allows workers to sue in non-federal courts. Workers can receive back pay under both laws. Any payments recovered under either law would not reduce UI payments.