The California Worker Adjustment and Retraining Notification (WARN) Act

California employees are protected by some of the strongest labor laws in the nation. Many California workers are protected by the state’s Worker Adjustment and Retraining Notification Act​ (WARN Act). This law, found in the California Labor Code, protects affected employees during mass layoffs, terminations, and relocations. The events are known as triggering events.

The Act requires employers to provide affected employees with at least a 60-day notice before a triggering event. The WARN notice requirements also alert the Employment Development Department (EDD) and its dislocated worker unit, along with the local government, so communities can prepare for large-scale job losses.

The California WARN Act is similar to the federal WARN Act​, with many notice requirements overlapping. Because the California WARN Act typically offers broader protection than federal law, this article focuses on the California law.

This article explains who is covered by the California WARN Act, when it is triggered, the notice requirements, and the legal options for affected employees if their employer violates the law.

Which Employers Are Covered by the California WARN Act?

The California WARN Act protects workers and communities in certain situations involving job loss. But not every job loss is covered by the law. The law defines which employers are covered.

The number of employees affects which employers must comply with the California WARN Act. The WARN Act only applies to a “covered establishment.”

California law​ defines a covered establishment as:

• An industrial or commercial facility
• With 75 or more employees in the prior six months
• Including full-time employees and part-time employees

Some workers may not count toward the threshold, such as independent contractors​ and workers employed by a staffing agency. Even if an employer’s headquarters are in another state, it is subject to the California WARN Act if it has a covered establishment in California.

Note that the federal WARN Act only applies to employers with 100 or more employees—not including part-time employees. This is one example of how the California WARN Act may cover an employer that the federal WARN Act does not.

Events That Trigger the California WARN Act

Under California law, three types of employment events trigger the WARN Act notice requirements. These three terms are defined in California Labor Code Section 1400.5​.

1. Mass layoffs: California law defines a mass layoff as one that impacts 50 or more employees in a 30-day period. For comparison, the federal WARN Act requires 500 or more affected employees (or 50 to 499 if that number represents 1/3 of the workforce at that location).

2. Terminations or Plant Closures: An employer that terminates operations or substantially closes down a covered establishment must comply with the California WARN Act.

3. Relocations: The California WARN Act is triggered if an employer relocates all or substantially all of the industrial or commercial operations of a covered establishment to a location more than 100 miles away.

Each of these events triggers the California WARN Act notice requirement.

Notice Requirements

When it comes to notice, the WARN requirements are specific about the details.

When and Who the Covered Employer Must Notify

A covered employer must provide advance notice at least 60 days before the triggering event occurs. The 60-day Cal-WARN notice must be in writing and provided to:

• The affected employees

• The Employment Development Department (EDD)

• The Local Workforce Development Board

• The chief elected official of the affected local government

The written notice to affected employees may be delivered in person, by first-class mail, or in the employee’s pay envelope (if it meets certain requirements).

Detailed Information

The Act also requires the employer to include certain information in the 60-day notice. The employer must provide important details, such as:

• The employer’s contact information (including a telephone number)
• Job titles affected
• The number of affected workers
• The location of the worksite
• The duration of the triggering event (if it is temporary)

This information helps the community and the affected workers prepare for the impact.

The employer must indicate whether it will coordinate assistance, such as Rapid Response​ services. These services help the affected employees find new job opportunities, prepare for a new career, prepare for interviews, file for unemployment benefits, and learn about training and education opportunities.

For union shops, the notice must also indicate:

• Whether bumping rights exist (protecting workers with seniority)
• The union name and address
• The name and address of the chief elected officer of each union

The notice must also include information about the CalFresh​ program, which provides grocery assistance for eligible people.

Potential Exceptions and Special Circumstances

The California WARN Act includes several exceptions that may affect its coverage. The key exceptions are:

• Unforeseeable business circumstance: An act of war, a physical calamity, or a natural disaster may affect notice requirements.
• “Faltering company” exception: A company that is seeking financial assistance to stay in business and meets certain requirements​ may request an exemption to the WARN Act notice requirements. This applies only to termination or relocation events, not to mass layoffs.
• Project or seasonal work: Workers in particular industries hired for a specific project or for the duration of a season may not be entitled to WARN Act protections. An employer may request an exemption from the notice requirement if it meets the conditions outlined in Labor Code Section 1402.5.

What Can Employees Recover If an Employer Violates the WARN Act?

When a covered employer violates the California WARN Act, employees may file a civil lawsuit. An employee can sue under both the federal and California WARN statutes in the same case, but can recover under only one or the other, not both.

An employee generally has three years to file a lawsuit for a California WARN Act violation. The statute of limitations​ clock usually starts running on the date of the triggering event.

Because a triggering event may affect many employees, a class-action lawsuit​ may be appropriate. In a class action lawsuit, similarly situated people unite to file a single lawsuit against the employer.

If successful, the court may award the affected worker or workers:

• Back pay​ (up to 60 days)
• The value of the employee’s benefits​ that were lost. This includes medical expenses that would have been covered under the employer-provided health insurance
• Civil penalties​ ($500 per day per violation)
• Attorney’s fees​

Under California Labor Code Section 1402(c​), the employer’s liability may be reduced if it made certain payments, such as:

• Wages to the employee during the employer’s violation period (excluding accrued vacation time)
• Voluntary and unconditional payments to the employee that were not required by a legal obligation
• Payments to a third party or trustee, such as healthcare benefit premiums, for the employee during the violation period

In addition, the California Labor Code​ empowers the Labor Commissioner to investigate potential WARN Act violations and to order temporary relief to the affected workers during the investigation.

Rights and Options for California Employees

If you get laid off from your job, your workplace closes, or your workplace moves more than 100 miles away, you may be entitled to California‘s WARN Act protections. If your employer is a covered establishment and you didn’t receive the required 60-day notice before the triggering event, you may want to contact a California labor law attorney​.

The different requirements, exceptions, and legal options can be complex. An attorney will evaluate your situation and help you file all potential claims against your employer. Although you have up to three years to file a civil claim, consulting with an attorney early will help ensure your rights are protected.