Layoffs & WARN Act Violations
In California, employees impacted by mass layoffs, plant closures, or large-scale job relocations may be protected under the Worker Adjustment and Retraining Notification (WARN) Act.
Employers are required to provide advance written notice before carrying out such actions. Failure to do so may result in legal penalties and compensation owed to affected workers.
What Is the WARN Act?
There are two WARN Acts that apply in California:
- Federal WARN Act: Applies to employers with 100 or more full-time employees and requires 60 days’ notice of mass layoffs, plant closings, or relocations.
- California WARN Act: Applies to employers with 75 or more full-time or part-time employees and offers broader protections than federal law. It also requires 60 days’ advance notice for:
- Mass layoffs: 50 or more employees laid off within a 30-day period
- Plant closures: Shutdowns of industrial or commercial facilities
- Relocations: Moving operations 100 miles or more
Both laws are designed to give workers time to prepare, seek new employment, or access retraining opportunities.
Case Results
What Counts as a Violation?
A WARN Act violation occurs when an employer:
affected employees, their representatives,
and appropriate government agencies
information in the notice
has already taken place
Employers may try to justify lack of notice by citing unforeseen circumstances or natural disasters, but these exceptions are narrowly construed.
Required Notice Contents
The notice must include:
- The expected date of the layoff, closure, or relocation
- Whether the action is permanent or temporary
- The job titles and number of affected positions
- Contact information for a company representative
Remedies for Employees
If an employer violates the WARN Act, affected employees may be entitled to:
In California, claims can be enforced through civil lawsuits or administrative complaints. Class actions may be appropriate when large groups are affected.