The WARN Act: A Guide to Understanding California’s Worker Adjustment and Retraining Notification Act
The Worker Adjustment and Retraining Notification Act (WARN) is a California state law that requires employers to provide advance notice to employees and the state when a plant closing or mass layoff is imminent. This law aims to protect workers from the sudden loss of employment and to provide them with time to seek new job opportunities or retrain for new careers. In this article, we will delve into the details of the WARN Act, its requirements, and its implications for employers and employees in California.
What is the WARN Act?
The WARN Act was enacted in 1983 to provide employees with advance notice of a plant closing or mass layoff. The law applies to employers with 75 or more full-time employees, and it requires them to provide written notice to affected employees, the California Employment Development Department (EDD), and local government agencies at least 60 days before a plant closing or mass layoff. The notice must include information about the reason for the closing or layoff, the number of employees affected, and the date of the closing or layoff.
Who is Covered by the WARN Act?
The WARN Act covers employers with 75 or more full-time employees, including part-time employees who have worked at least 1,200 hours in the previous 12 months. The law also covers employees who are employed by a parent company, subsidiary, or affiliate of the employer. However, the law does not cover employees who are employed by a temporary or seasonal employer, or employees who are employed by a company that is experiencing a financial crisis or other unforeseen circumstances.
What is a Plant Closing?
A plant closing is defined as the permanent or temporary shutdown of a single employment site, which results in the loss of employment for 50 or more employees during a 30-day period. This can include the closure of a factory, office, or other work site. The WARN Act requires employers to provide notice to employees and the state at least 60 days before a plant closing.
What is a Mass Layoff?
A mass layoff is defined as the reduction in force of 50 or more employees at a single employment site, which results in the loss of employment for 50 or more employees during a 30-day period. This can include the layoff of employees due to a reduction in force, a change in business operations, or other reasons. The WARN Act requires employers to provide notice to employees and the state at least 60 days before a mass layoff.
What are the Requirements for Notice?
The WARN Act requires employers to provide written notice to affected employees, the California EDD, and local government agencies at least 60 days before a plant closing or mass layoff. The notice must include the following information:
* The reason for the plant closing or mass layoff
* The number of employees affected
* The date of the plant closing or mass layoff
* The name and address of the employer
* The name and address of the employment site affected
What are the Penalties for Non-Compliance?
The WARN Act imposes penalties on employers who fail to provide notice to employees and the state. The penalties can include:
* Civil penalties of up to $500 per day for each day of non-compliance
* Criminal penalties of up to $1,000 per day for each day of non-compliance
* Injunctions to prevent further non-compliance
What are the Benefits of the WARN Act?
The WARN Act provides several benefits to employees and employers in California. For employees, the law provides advance notice of a plant closing or mass layoff, which allows them to seek new job opportunities or retrain for new careers. For employers, the law provides a framework for communicating with employees and the state about changes in their business operations.
Conclusion
The WARN Act is an important law in California that provides employees with advance notice of a plant closing or mass layoff. The law requires employers to provide written notice to affected employees, the California EDD, and local government agencies at least 60 days before a plant closing or mass layoff. The notice must include information about the reason for the closing or layoff, the number of employees affected, and the date of the closing or layoff. The WARN Act provides several benefits to employees and employers in California, including advance notice of changes in business operations and a framework for communication.