Question: I heard that California implemented a new law that changes the information employers must provide when they lay off or transfer employees. Is that true?
Answer: Yes, there are new notice requirements for certain employers that engage in layoffs or transfers of employees. These new requirements are the result of recent amendments to the California Worker Adjustment and Retraining Notification Act (“CalWARN”).
The CalWARN Act generally requires certain employers to provide notice to employees when they are planning to engage in a “mass layoff,” termination, or relocation. The CalWARN Act itself is limited—it only applies to businesses that have employed over 75 people at “industrial or commercial” facilities within the last 12 months. A “mass layoff” is the layoff of more than 50 people during a 30-day period. Similarly, “termination” means the substantial cessation of operations are a covered industrial or commercial facility, and “relocation” is the removal of substantially all industrial or commercial operations to a location over 100 miles away. These definitions help determine if an employer is covered by the CalWARN Act requirements.
If covered, the CalWARN Act requires employers to give 60 days’ notice of the effective date of a mass layoff, termination, or relocation. Employers must notify their employees as well as the state Employment Development Department, the local workforce investment board, and certain local elected officials — e.g., the chief elected county and city officials. These requirements mirror the federal WARN Act’s requirements.
Beginning on Jan. 1, however, the Legislature expanded the CalWARN Act’s notice requirements. Now, an employer’s CalWARN notice must include “whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, the employer plans to coordinate services through a different entity, or the employer does not plan to coordinate services with any entity;”
“a functioning email and telephone number of the (local workforce development) board and the following description of the rapid response activities offered by the local workforce development board . . . : ‘Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career;’
“a description of the statewide food assistance program known as CalFresh . . . the CalFresh benefits helpline, and a link to the CalFresh internet website;” and
“a functioning email and telephone number of the employer for contact.”
Additionally, if an employer plans on coordinating services with the local workforce development board or other entity, the employer must arrange these services within 30 days of issuing the original CalWARN notice.
In effect, these new CalWARN notice requirements impose extra planning requirements on employers considering to engage in a layoff or termination or relocation of operations. For example, employers may be required to contact local workforce development boards to coordinate the availability of services to employees. This may require that employers provide notice of their planned employment action before they ordinarily would. Employers considering a triggering employment action should plan ahead and contact their labor counsel to ensure they comply with the new CalWARN notice requirements.
Marco Lucido is a lawyer with Fenton & Keller in Monterey. This column is intended to answer questions of general interest and should not be construed as legal advice. Email queries to mlucido@fentonkeller.com
