California Layoff Protection Act details

----http://www2.calaborfed.org/userfiles/doc/2010/legislative/WARN_Comparison.pdf

 

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:

Item

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

and works average of at least 20 hours a week for that employer)

75 employees

over past 12 months (an employee is a person employed for at least 6 or last 12 months – including employees working less than 20 hours a week)

Mass layoff

A layoff of 50 or more full-time employees

if the layoff affects 33% of the full-time workforce at a single site, or a layoff of 500 or more people at a single site, all during a 30-day period

A layoff of 50 or more employees

regardless of size of business, at a single site, during a 30-day period

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

plus local Workforce Investment Board

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.

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