Mass Layoffs and Plant Closings

Federal law requires advance notice of mass layoffs under the Worker Adjustment and Retraining Notification Act (WARN). California has its own version of the WARN Act. The two laws contain some distinct differences.

Under the federal WARN Act, companies that employ a certain number of employees must provide affected employees, their representatives and specified government officials and agencies with 60 days’ advance, written notice prior to any mass layoffs or plant closings.

California’s version of the WARN Act is broader in scope than the federal act and affects more employers. California businesses must comply with the requirements of both laws.1 Penalties, including up to 60 days’ back pay per employee, could be assessed for failing to provide required notice.

Mass Layoffs and Plant Closings - Covered EmployersMass Layoffs and Plant Closings - Covered Employers
In general, employers are covered by the federal WARN Act if they have 100 or more employees.

WARN Act Notice Content and RecipientsWARN Act Notice Content and Recipients
The content of the 60-day notice you must give and the manner in which you must serve the notice are substantially the same under both federal and state law.

Exceptions to the 60-Day WARN Notice RequirementExceptions to the 60-Day WARN Notice Requirement
Under limited conditions, the 60-day notice requirement can be reduced or eliminated.

Penalties for Violating the WARN ActPenalties for Violating the WARN Act
If you violate the WARN Act, you must pay back pay and benefits to each affected employee for each day of the violation, up to a maximum of 60 work days.

Mass Layoffs and Plant Closings

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