Protecting People During Transitions
Layoffs, relocations, and closures are some of the hardest decisions organizations face. However, how you handle those transitions matters, especially in California, where the Worker Adjustment and Retraining Notification Act (commonly known as the California WARN Act) sets strict requirements for advance notice.
This law is designed to protect affected employees by giving them time to prepare for a plant closure, mass layoff, or relocation. With clear notice requirements, the California WARN Act allows people to move forward with dignity.
At SparkEffect, we understand the impact of California WARN Act regulations on workforce planning. While we do not provide legal advice or ensure compliance, we partner with HR and legal teams who are experts to deliver career transition and outplacement services that align with these requirements. Supporting your people well during times of change is a leadership decision.
What Is the California WARN Act?
The California Worker Adjustment and Retraining Notification Act requires covered employers to provide written notice at least 60 days before any:
- Mass layoff
- Plant closure
- Relocation involving 50 or more employees at a single employment site
This applies to covered establishments with 75 or more full-time or part-time employees who have been employed for at least six of the past twelve months. The goal of this retraining notification act is to give affected employees a fair chance to seek new opportunities or retraining before their current position ends.
State vs. Federal WARN Act: What’s the Difference?
Both the California WARN Act and the federal WARN Act serve to protect workers during large employment transitions, but California’s version goes further.
Federal WARN Act
- Applies to employers with 100+ full-time employees
- Triggered by 50+ job losses and 33% of the workforce
- Covers plant closings or mass layoffs
California WARN Act
- Applies to employers with 75+ full- or part-time employees
- Triggered by 50+ job losses,with no percentage threshold
- Covers mass layoffs, plant closures, and relocations
Who Must Receive a WARN Notice?
Under the California WARN Act, employers must provide a written notice at least 60 days in advance to:
- Affected employees
- Any union representing affected employees
- The Employment Development Department (EDD)
- The Local Workforce Development Board
- The chief elected official of the city and county government where the employment site is located
This communication ensures that both individuals and local government agencies can prepare and mobilize resources to support those impacted. Work with your legal counsel to ensure you’re meeting the written notice requirements.
What Triggers the WARN Act in California?
A mass layoff occurs when 50 or more employees lose their jobs at a single site within a 30-day period. The notice must include:
- The employer’s name and contact details for a company official
- The expected date of the plant closing, layoff, or relocation
- Whether the change is permanent or temporary
- Total number and job titles of affected employees
Employers should submit the WARN notice to EDDWarnNotice@edd.ca.gov and consult the Employment Development Department for current guidance. Your legal team can assist you in submitting the WARN notice.
Legal Risks of Noncompliance
Although SparkEffect does not offer legal counsel, we encourage every employer to understand the risks of noncompliance with the WARN Act California requirements. Covered employers that fail to issue a proper notice may face serious consequences, including:
- Back pay for each day of violation (based on the employee’s final rate or 3-year average, whichever is greater)
- Medical expenses incurred due to lost employer-provided health insurance
- Reasonable attorney’s fees
- A $500 civil penalty for each day of noncompliance
- Adjustments for voluntary and unconditional payments
Employers should work closely with legal advisors to assess WARN responsibilities and avoid WARN Act violations.
Exceptions to WARN Act Requirements
There are a few exceptions under the California WARN Act, including:
- Seasonal employment with known end dates
- A physical calamity or natural disaster
- Unforeseeable business circumstances
- When an employer is actively seeking capital or business and believes that giving notice would jeopardize funding efforts
To qualify for the actively seeking capital exception, the employer must prove:
- The business or capital pursuit was underway at the time notice was required
- That funding would have prevented the mass layoff or plant closure
- That issuing a WARN notice would have interfered with those efforts
This is a narrow exception and should be reviewed with legal guidance.
How SparkEffect Supports WARN Act Transitions
SparkEffect helps organizations navigate the human side of worker adjustment and retraining mandates. While we don’t provide legal guidance, we align our services with the timing and obligations of the California WARN Act to support both the employer and the employees affected.
We offer:
- Structured career transition and outplacement programs
- Job search support, including resume help and coaching
- Communication strategies to maintain morale
- Services tailored for both corporate HR and union environments
We use “career transition” to enhance the experience, while still incorporating outplacement language for clarity and search relevance.
Complying with the California WARN Act should go beyond paperwork and legal compliance. It’s about how you support people during some of the hardest moments of their careers.
SparkEffect is here to help your organization navigate mass layoffs, plant closures, or relocations with compassion and professionalism. Our career outplacement services support your workforce during the advance notice period required under the WARN Act California law, and beyond.
Partner with SparkEffect During WARN Act Events
Complying with the California WARN Act should go beyond paperwork and legal compliance. It’s about how you support people during some of the hardest moments of their careers.
SparkEffect is here to help your organization navigate mass layoffs, plant closures, or relocations with compassion and professionalism. Our career outplacement services support your workforce during the advance notice period required under the WARN Act California law, and beyond.
