Nationwide Warn Act
California and Federal Worker Adjustment and Retraining Notification (WARN) Acts require employers to provide advance notice to workers in the event of qualifying mass layoffs or plant closings.
The California WARN Act applies to “covered establishments” (worksites with 75 or more employees in the past 12 months) and defines a “mass layoff” as the termination of 50 or more employees at a covered establishment within a 30-day period. Employers must provide 60 days’ written notice before such layoffs. Failure to comply can result in liability for back pay, benefits, and potential penalties under the Private Attorney General Act (PAGA).
The Federal WARN Act covers employers with one hundred or more full-time employees or one hundred or more employees working at least 4,000 hours per week. It defines a “plant closing” as the shutdown of a single site resulting in job loss for fifty or more full-time employees over 30 days. A “mass layoff” is defined as either a loss of at least 33% of full-time employees (minimum fifty employees) or 500 full-time employees over 30 days. The federal act also requires 60 days’ notice and provides for similar remedies as the California act.
Anti-discrimination and retaliation laws also apply to mass layoffs. Employers cannot use these events as an excuse to discriminate against protected classes of employees, such as older workers, disabled employees, or pregnant workers. Such practices, even within the context of a legitimate reduction in force (RIF), are illegal.
If you or someone you know was not provided advance notice as part of a mass layoff or RIF, contact us immediately.
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