Description
The Federal Worker Adjustment and Retraining Notification Act (“WARN”) applies to employers throughout the country with 100 or more employees. California’s independent rules apply to employers with 75 or more employees. The laws require advance notice before a mass layoff or plant closing can occur.
This publication addresses the notification obligations created by the federal and state laws, as well as the key exemptions and rules regarding temporary projects, covered employers, sales of businesses, strikes, lockouts, employee notices, and enforcement provisions. It describes the compliance obligations employers face and limited exceptions to the notification obligations. It also examines the damages and remedies available where violations occur. It includes helpful appendices that include a side-by-side comparison of the state and federal laws, a case table and other resources.
Among the key subjects addressed in the publication are the following:
- Advance Notification Obligations
- Application Of WARN Rules To COVID-19 Pandemic
- Definition Of Mass Layoffs
- Definition Of Plant Closings
- The “Employment Loss” Standards
- Impact Of Stay-at-Home Orders
- Implications Of Reducing Hours Of Work
- Exemptions And Modifications To Advance Notice Rules
- California And Federal Laws
- Covered Employers
- Sales Of Businesses
- Unforeseeable Business Circumstances
- Strikes And Lockouts
- Employee Notices
- Enforcement Provisions And Interpretations
- Damages And Penalties
- Case Law Developments
- Side-By-Side Comparison Of California And Federal WARN Rules
- Stay-At-Home Orders
Table Of Contents
SECTION 1Â Â Â Â Â Â Â Â Â INTRODUCTION
SECTION 2Â Â Â Â Â Â Â Â Â PROVISIONS OF THE FEDERAL WARN ACT
2.1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Covered Employers
2.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Impact On Plant Closings And Mass Layoffs
2.3 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Business Relocations And Consolidations
2.4 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Sales Of Businesses
SECTION 3Â Â Â Â Â Â Â Â Â NOTIFICATION RULES UNDER FEDERAL LAW
3.1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â General Notice Rules
3.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Limited Exceptions To The 60-Day Notification Rule
3.3 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Complete Exemptions From Notification Rules
SECTION 4Â Â Â Â Â Â Â Â Â SALES OF BUSINESSES
4.1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Special Rules Applicable In The Event Of Sales
4.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Arrangements Between Purchaser And Seller
SECTION 5Â Â Â Â Â Â Â Â Â ENFORCEMENT PROVISIONS
5.1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Recoveries By Employees
5.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Units Of Local Government
5.3 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Court Discretion Regarding Liability
5.4 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Private Right Of Action
5.5 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Exclusive Remedies
5.6 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Notice And Bargaining Obligations With Respect To Union Employees
SECTION 6         CALIFORNIA’S MASS LAYOFF AND TERMINATION LAW
6.1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Overview
6.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Covered Employers
6.3 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Required Notifications
6.4 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Triggering Events
6.5 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Exceptions To The Notice Rule
6.6 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Penalties For Violating The Notification Rules
6.7 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Additional Civil Penalties
6.8 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Enforcement
6.9 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Reduction In Penalties
6.10Â Â Â Â Â Â Â Â Â Â Â Â Â Â Comparison Of State And Federal Laws
SECTION 7Â Â Â Â Â Â Â Â Â APPLICATION OF WARN REQUIREMENTS TO THE COVID-19 PANDEMIC
7.1 Â Â Â Â Â Â Â Â Â Â Â Â Â Â Overview
7.2 Â Â Â Â Â Â Â Â Â Â Â Â Â Â The Federal WARN Act
7.3 Â Â Â Â Â Â Â Â Â Â Â Â Â Â The California Mass Layoff And Termination Law
APPENDIX AÂ Â Â Â Â Â Department Of Labor Regulations
APPENDIX BÂ Â Â Â Â Â Â California WARN Act
APPENDIX CÂ Â Â Â Â Â Â Comparison Of Federal WARN Act Provisions And Those Of California Law
APPENDIX DÂ Â Â Â Â Â EDD Worker Adjustment And Retraining Notification (WARN) Information For Employers
APPENDIX EÂ Â Â Â Â Â Â California Executive Order N-31-20 (March 17, 2020)
APPENDIX FÂ Â Â Â Â Â Â Department of Industrial Relations Guidance On Conditional Suspension Of California WARN Act Notice Requirements Under Executive Order N-31-20 (March 23, 2020)
APPENDIX GÂ Â Â Â Â Â Â Case Table
About The Author
Richard J. Simmons is a Partner in the law firm of Sheppard, Mullin, Richter & Hampton LLP in Los Angeles. He represents employers in various employment law matters involving litigation throughout the country and general advice regarding state and federal wage and hour laws, employment discrimination, wrongful discharge, employee discipline and termination, employee benefits, affirmative action, union representation proceedings, and arbitrations. Mr. Simmons received his B.A., summa cum laude, from the University of Massachusetts, where he was a Commonwealth Scholar and graduated in the Phi Kappa Phi Honor Society. He received his J.D. from Berkeley Law at the University of California at Berkeley where he was the Editor-in-Chief of the Industrial Relations Law Journal, now the Berkeley Journal of Employment and Labor Law.
Mr. Simmons argued the only case before the California Supreme Court that produced a victory for employers and business in 2018. He was recently recognized as the Labor and Employment Attorney of the Year by the Los Angeles Business Journal and was inducted into the Employment Lawyers Hall of Fame. He has lectured nationally on wage and hour, employment discrimination, wrongful termination, and other employment and labor relations matters. He is a member of the National Advisory Board to the Berkeley Journal of Employment and Labor Law, published by Berkeley Law at the University of California at Berkeley. He was also appointed by the California Industrial Welfare Commission as a member of three Minimum Wage Boards for the State of California.
