HR Practice Pointer: Understanding the Cal-WARN Act

Mass layoffs in California are regulated by the Cal-WARN Act. In general, pursuant to the Act, an employer may not order a mass layoff at a covered establishment unless, 60 days before the order takes effect, the employer gives written notice of the order to employees and the Employment Development Department. An employer who fails to give the required notice before ordering a mass layoff is liable to each employee entitled to notice who lost his or her employment for back pay and the value of the cost of any benefits the employee may have been entitled to up to a maximum of 60 days or one-half the number of days that the employee was employed by the employer, whichever is smaller. "Mass layoff" refers to a layoff during any 30-day period of 50 or more employees at a covered establishment. An employer may request an exemption to comply with the notice requirement if it meets certain conditions. Read More.