HR managers need to understand the California WARN Act to protect employees during big workforce changes such as layoffs and plant closings. This quick guide covers what the Act is, who it applies to, notice rules, when it comes into play, and the penalties for not following it. It’s a straightforward overview to help HR professionals ensure they comply and safeguard employees during important work changes.
Key Facts
- The California WARN Act requires covered employers to give employees, local officials, and the state at least 60 days’ written notice before a mass layoff, plant closure, or relocation.
- The California WARN Act applies to employers with 75 or more full-time and part-time employees, a lower threshold than the 100-employee bar set by the federal WARN Act, according to the California Employment Development Department.
- California employers filed 1,443 WARN notices affecting 78,322 workers over the 24 months ending June 2026.
- Employers that skip proper notice risk civil penalties of up to $500 per day, plus back pay and benefits for each affected employee, under California Labor Code Section 1402.
Table of Contents
- What Is the California WARN Act?
- California WARN Act Requirements
- CA WARN Covered Employers
- California State WARN Notice Requirements
- What Triggers the California WARN Act?
- When Does the California WARN Act Apply?
- California WARN Act exceptions
- Warn Act Penalty in CA
- Offboarding During Layoffs
- Offboarding and Document Management Software ✅
What Is the California WARN Act?
The California Worker Adjustment and Retraining Notification (WARN) Act protects employees during big changes in the workforce. While the federal WARN Act provides a basic level of protection, some states, like California, New York, New Jersey, Wisconsin, and Illinois, have extra regulations in place. In California, the Act applies to certain businesses, making sure that employees are given enough notice if the company shuts down, lays off many workers, or moves. Employers must follow both the federal WARN and the state WARN whenever a covered business goes through a significant change.
The California WARN Act is codified at California Labor Code Sections 1400 through 1408 and is enforced by the California Department of Industrial Relations.
Related: California Employment and Labor Laws explained
California WARN Act Requirements
To trigger the California WARN Act, an employer must qualify as a “covered establishment.” Being a covered establishment means that an employer is employing or has employed 75 or more full-time and part-time employees in the previous 12 months. Employees must have a minimum of six months of employment within the 12-month period leading up to the required notice date.
CA WARN Covered Employers
Covered establishments include a diverse range of industrial or commercial facilities that meet the specified employment criteria. The Act’s application is broad, and it encompasses various businesses with more than 75 employees within the last 12 months. The Act protects a wide array of workers, so it applies to many industries.
| Category | Federal WARN Act | California WARN Act |
|---|---|---|
| Employer size threshold | 100 or more full-time employees | 75 or more full-time and part-time employees |
| Mass layoff threshold | 50–499 employees representing 33% of the workforce, or 500+ regardless of percentage | 50 or more employees within 30 days, regardless of percentage |
| Relocation trigger | Covered only under plant-closing rules | Relocation of 100 miles or more, any number of employees |
| Notice period | 60 calendar days | 60 calendar days |
| Who must be notified | Employees, state dislocated worker unit, local government | Employees, EDD, Local Workforce Development Board, chief elected official |
This comparison draws on notice standards published by the California Employment Development Department and the U.S. Department of Labor.
California State WARN Notice Requirements
Employers who are covered by the California WARN Act must provide a 60-day notice before there is a plant closure, layoff, or relocation. It isn’t enough to follow the list of requirements that are part of the federal WARN Act. In addition to federal WARN requirements, notifications must be sent to the Local Workforce Development Board. They must also be sent to the chief elected official of each relevant city and county in CA.
Also, apart from the federal requirements, the California WARN Act adds an extra step. Employers need to inform the Local Workforce Development Board and the top elected official in each city and county where the changes are happening. This extra layer of notification ensures that affected employees are well-informed and that local authorities are aware of and ready for the potential impact on the community.
What’s New for California WARN Notices in 2026?
Effective January 1, 2026, California expanded its Cal-WARN notice requirements under Senate Bill 617, which amended Labor Code Section 1401. Covered employers must now state whether they will coordinate rapid-response services through the Local Workforce Development Board or another entity, and each notice must include a functioning email address and phone number for that board, according to the California Employment Development Department. Notices must also describe CalFresh, the state’s food assistance program, along with its helpline and website, so affected employees can access benefits quickly.
Following these rules is vital for employers to meet legal obligations and maintain positive relationships with employees and local communities during big changes.
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What Triggers the California WARN Act?
The California WARN Act is triggered by specific events that impact the workforce. These triggers include a plant closure affecting any number of employees, a layoff involving 50 or more employees within a 30-day period regardless of the percentage of the workforce affected, and a relocation of at least 100 miles that affects any number of employees. These events trigger the WARN Act, which ensures that employees receive advance notice and protection in the face of significant changes to their employment status.
The Act is triggered in the following scenarios:
1. Plant Closure: The California WARN Act applies when there is a plant closure affecting any number of employees.
2. Mass Layoff: A layoff of 50 or more employees within a 30-day period triggers the Act, regardless of the percentage of the workforce.
3. Relocation: The Act comes into play when there is a relocation of at least 100 miles that affects any number of employees.
Unlike the federal WARN Act, which only requires notice for a mass layoff of 50 to 499 employees when they represent at least 33% of the active workforce (or 500 or more employees regardless of percentage), the California WARN Act has no such percentage test, according to the U.S. Department of Labor’s WARN regulations.
Does the California WARN Act Use 90-Day Aggregation?
The federal WARN Act combines separate layoff rounds at the same site within a 90-day window when each round alone falls short of the 50-employee threshold, unless the employer proves the rounds had distinct causes, per the U.S. Department of Labor’s WARN Advisor. California’s WARN Act does not spell out an identical 90-day rule, so employment counsel generally advises treating closely timed layoff rounds as a single triggering event until a court rules otherwise.
When Does the California WARN Act Apply?
The California WARN Act outlines specific conditions under which it applies and provides exceptions for certain circumstances. The Act is applicable to a “covered establishment,” defined as an employer that has employed, in the preceding 12 months, 75 or more full-time and part-time employees. Similar to the federal WARN Act, employees must have a minimum of six months of employment within the 12 months preceding the required notice date to be counted.
The Act is triggered in the scenarios outlined above.
California WARN Act exceptions
The WARN Act doesn’t apply in California under the following exceptions:
- The completion of a project: If a closure or layoff happens because a specific project or task is finished, the Act doesn’t apply. This exception is for employers covered by certain Wage Orders and industries where employees were hired knowing their job was only for that project’s duration.
- Seasonal Employment: Employees who are hired for seasonal work don’t need the usual notice requirements. They are hired with the understanding that their job is temporary.
- Physical Calamity or Act of War: No notice is required if a mass layoff, relocation, or plant closure is caused by a physical disaster or war.
- Capital or Business Pursuit: In certain cases, if an employer actively seeks capital or business and notifies the Department of Industrial Relations (DIR), they might not need to give notice before relocating or terminating employees. This is because giving notice could hinder their chances of securing the needed capital or business.
Employers need to understand these situations and exceptions in order to follow the California WARN Act properly and ensure they’re meeting requirements.
WARN Act Penalty California
Violating the California WARN Act can lead to serious consequences for employers. If they don’t follow the rules, they could face a civil penalty of up to $500 per day paid to the affected local government, separate from any back pay and benefits owed directly to employees, under California Labor Code Section 1402. It goes without saying that affected employees have rights too. They might get back pay, calculated based on their final salary or their average salary over three years—whichever is higher. Plus, employers may have to cover medical bills that would have been paid by the company’s health plan. This responsibility lasts for as long as the violation continues, which can be up to 60 days or half the time the employee worked—whichever is shorter. These penalties show how important it is for employers to understand the California WARN Act.
Real-world filings illustrate the stakes: over the 24 months ending June 2026, Amazon filed more California WARN notices than any other employer, underscoring how large-scale reductions across any industry can trigger these obligations.
Failing to do so can lead to legal and financial problems for the company. It’s up to HR managers to make sure the company follows the rules, keeps all processes transparent, and avoids legal issues. Understanding all the details of the Act is key for HR professionals to handle workforce changes while respecting employees’ rights and needs.
California Work Sharing Program
California’s Work Sharing Program is a helpful option for employers dealing with a slowdown in production or services. The program gives them an alternative to laying off workers temporarily. It’s a way to keep trained employees on board across different industries. This way, when things pick up, the business can bounce back quickly. Employees who have their hours and pay reduced can still get unemployment benefits, keep their jobs, and handle financial difficulties better. This flexible plan is a win-win for both employers and workers during tough economic times.
California Laws
Looking for more information about California? Read up on California wages, state holidays, and more!
California articles:
- California Minimum Wage
- California State Holidays
- California Privacy Laws
- California Privacy Rights Act
- California Family Rights Act
- California Bereavement Leave
- California Pay Transparency Law
- California Overtime Laws
- California Paid Family Leave
Offboarding During Layoffs
Understanding and complying with the WARN Act is crucial for HR managers, supporting fairness and transparency during workforce changes. By ensuring employee rights and maintaining open communication, HR professionals contribute to a positive workplace culture and compliance with regulations. After notifying employees of impending layoffs, the next crucial step is initiating the employee offboarding process.
Offboarding with Factorial:
Factorial simplifies the offboarding process, making tasks easier and ensuring a smooth transition for departing employees. With Factorial, you can efficiently manage exit procedures, such as collecting company assets, updating access permissions, and conducting exit interviews. Offboarding software makes the entire process easier from start to finish.
Key Features for offboarding during layoffs:
1. Clear Communication: Easily communicate departure details to the departing employee, including the last day of work, return of company property, and other essential information.
2. Task Automation: Automate offboarding tasks, such as revoking system access, updating records, and notifying relevant departments. This saves time and minimizes the risk of oversight.
3. Documentation and Compliance: Ensure compliance by generating necessary documentation, such as termination letters and exit surveys. This helps you maintain a comprehensive record of the offboarding process.
4. Access Control: Centralize access control management, making it simple to revoke access to company systems and confidential information, protecting your organization’s data.
By using Factorial for offboarding, HR managers can improve efficiency, maintain compliance, and provide a positive experience for departing employees.
FAQ
What is the California WARN Act?
The California WARN Act is a state law that protects employees during major workforce changes by requiring covered employers to provide a 60-day advance notice before a plant closure, relocation, or mass layoff. It applies to covered establishments with 75 or more employees.
What is the 33% rule for the WARN Act?
Under the federal WARN Act, the 33% rule requires a layoff of 50 to 499 full-time employees to equal at least one-third of the active site workforce to trigger notice. In contrast, California’s state WARN Act triggers on 50 layoffs regardless of the percentage.
What triggers a WARN notice?
In California, a WARN notice is triggered by a plant closure, a layoff of 50 or more employees in a 30-day period, or a relocation of 100 miles or more. Factorial, an all-in-one business management software, helps simplify compliant employee offboarding during workforce adjustments.
