Layoff

With the exception of certain California laws restricting laying off some janitorial and building service personnel and other displaced workers, no law dictates how you select workers for layoff.1

However, the process that you use to select whom you will lay off is subject to review as a result of federal and state laws that protect employees from unlawful discrimination and retaliation. An employee who believes that he/she was selected for layoff because of membership in a protected class or participation in a protected activity can file a claim against the company under state and/or federal anti-discrimination statutes.

Making and Documenting the Layoff DecisionMaking and Documenting the Layoff Decision
You must be prepared to justify the process that you used to select employees for layoff, and to prove that the layoff was carried out in an objective manner.

Displaced WorkerDisplaced Worker
There are restrictions on layoffs that may apply when you have a change in ownership or change in contract with certain types of workers.
Read about new, expanded and updated laws for 2024.

1. Lab. Code secs. 1060-1065

Q&As

News

Five Common Layoff Questions and Answers
May 25, 2023