Layoffs in California: What Employees Need to Know About Their Rights

About 49K+ tech workers have been laid off in 2024 and we are only 2 months into this year. Soaring interest rates, troubling economic forecasts and macroeconomic conditions continue to remain. While we are seeing some signs of the return of the bull we are still far away from a healthy booming market. This job market recession kicked off towards the end of April 2022 and has continued way past the 18 month window we all thought it would end. While I can’t help everyone who reaches out to me for a referral because I am grateful to be working at a company that is still and never stopped hiring I thought of sharing some useful resources I collected over the internet, and from esteemed law professionals.

If you are facing potential layoffs or have recently lost your job in California, it’s important to understand your legal rights under state and federal law. Layoffs can be incredibly stressful experiences, but knowing the law can help employees navigate the situation properly. In this post, we’ll cover some key employment laws in California that apply to layoffs and reductions-in-force.

The WARN Act Under the federal Worker Adjustment and Retraining Notification (WARN) Act, California employers with 100 or more employees are required to provide at least 60 days advance written notice of any mass layoff affecting 50 or more employees at a single site of employment. This notice must also go to the state dislocated worker unit and local government.

Exceptions to the 60-day notice apply if the layoff is caused by business circumstances that were not reasonably foreseeable at the time notice would have been required. However, the employer must still give as much notice as practicable. Employees who do not receive proper notice may have legal recourse under the WARN Act.

California Labor Code Requirements The California Labor Code has additional requirements around notice, severance pay, and other support for workers facing layoffs. Employers must give notice to the Employment Development Department and employees. The required notice period depends on the number of layoffs within a 30-day period. Severance pay may also be required under the Labor Code.

Anti-Discrimination Laws When selecting employees for layoff, employers cannot violate anti-discrimination laws by basing decisions on protected characteristics like age, gender, race, national origin, or disability. Employers should follow objective, fair procedures that are applied consistently across affected employees.

COBRA Benefits Under COBRA, employees have the right to continue their employer-provided health insurance benefits for 18 months after being laid off. The employer must provide COBRA notification and offer the option to enroll in COBRA coverage. Employees pay the full premium costs.

Older Workers Benefit Protection Act (OWBPA)

The OWBPA amended the Age Discrimination in Employment Act (ADEA) to provide greater protections and disclosure requirements for older workers facing layoffs. Under OWBPA, employers must provide detailed disclosures about the ages and positions of those affected by the layoff. This ensures decisions are not being made based on age. The OWBPA also imposes specific requirements around waiving ADEA rights in severance agreements. Older workers have 21-45 days to review agreements and 7 days to revoke after signing.

Family Medical Leave Act (FMLA)

Under the FMLA, employees who have worked for at least 12 months and 1,250 hours in the last year have the right to 12 weeks of job-protected leave for serious health conditions or family care. Employees on FMLA leave when a layoff occurs may have to be reinstated into their job or a comparable position if the company begins rehiring within 12 months. There are notice requirements around FMLA eligibility in layoff situations.

California Fair Employment and Housing Act (FEHA)

The FEHA prohibits discrimination and harassment in layoffs based on protected characteristics like race, gender, disability, etc. Employers should ensure their layoff selection procedures are objective, applied consistently, and do not have a disparate impact on protected groups. FEHA also requires reasonable accommodation discussions for employees with disabilities facing layoff.

As this shows, there are many additional laws beyond the WARN Act and Labor Code that apply to layoffs in California. Consulting with an employment law attorney is highly recommended to ensure full compliance for both employers and employees.

What to do if you have been offered a settlement in exchange for terminating your services/layoffs. What do you do next?

The best course of action depends on the specific details of your employment status, performance history, and the employer’s motivations. Speaking with an employment law attorney is highly recommended to understand all of your options.

What to do if you have been put on PIP? Amazon is notorious for doing this and most of us are blissfully unaware of the law to know whats best course of action. Don’t worry I got you.

Here are some potential legal courses of action if you believe you have been unlawfully placed on a Performance Improvement Plan (PIP) in retaliation or due to conflict:

The best approach depends on the specifics. Prompt legal consultation is highly advisable before determining your next steps. The goal is to protect your rights and act strategically.

Useful resources on employment law related to discrimination

U.S. Equal Employment Opportunity Commission (EEOC) Website:

State Resources:

Legal Aid Resources:

Articles:

Books: