Wrongful termination
California WARN Act Lawyers
Covered employers must give 60 days of written notice before a mass layoff, relocation, or shutdown. Employees who got less notice are owed pay for the shortfall.
Send us the packet before you sign. If you are 40 or over, your severance deadline runs faster than any statute here.
Two Layoff Laws Protect You, and California’s Is Stronger
You may be covered by two laws at once: the federal WARN Act and California’s own Cal-WARN Act at Labor Code sections 1400 through 1408. We lead with Cal-WARN because it covers more employees.
| Issue | California (Cal-WARN) | Federal WARN |
|---|---|---|
| Covered employer | An establishment that employed 75 or more persons in the preceding 12 months | 100 or more full-time employees enterprise-wide |
| Mass-layoff trigger | 50 or more employees at a covered establishment within a 30-day period | 500 or more, or 50 to 499 when at least 33% of the site workforce |
| Percentage rule | None, no 33% threshold | The 33% rule applies in the 50 to 499 tier |
| Headcount window | Counts everyone employed in the prior 12 months, which sweeps in recent hires | Narrower full-time count |
Triggers under Labor Code 1400: a mass layoff of 50 or more employees at a covered establishment within a 30-day period, a relocation of operations 100 or more miles away, or a termination of operations.
Even temporary layoffs and furloughs can trigger Cal-WARN without a permanent cut, under the Boilermakers v. NASSCO Holdings line of cases.
What the Notice Must Say, Including the 2026 SB 617 Additions
The 60-day advance written notice must go to affected employees, the EDD, the local workforce development board, and the chief elected official of the city and county.
New for 2026: SB 617, effective January 1, 2026, adds required content. The notice must now:
- State whether the employer intends to coordinate rapid response and reemployment services through the local workforce development board, and if so, coordination must occur within 30 days of the notice.
- Include a description of Rapid Response activities and Local Board contact information.
- Provide information about the CalFresh food assistance program: a program description, the CalFresh helpline at 877-847-3663, and a link to the CalFresh website.
The practical read for employees: a notice missing these elements is defective, and a defective notice supports the pay remedy.
What You Are Owed When Notice Fails
Under Labor Code 1402, the employer owes back pay and the value of benefits for each day of the violation, up to 60 days, or half the length of employment, whichever is shorter. Benefits includes the cost of medical coverage you had to replace.
A Worked Example, Illustrative Only
A $30-per-hour warehouse employee terminated with zero notice is owed roughly $14,400 in wages, from 60 days at 8 hours, plus benefit costs.
On top of that, Labor Code 1403 adds a civil penalty of up to $500 per day, capped when the employer pays employees within three weeks, and Labor Code 1404 awards attorney’s fees to a prevailing employee.
The offset rule matters. Wages and voluntary, unconditional payments the employer made during the violation period reduce the award. Severance conditioned on signing a release is not an unconditional payment, which is exactly why you should have the release reviewed before you sign.
The Excuses Employers Raise, and Why Most Fail Under Cal-WARN
“Faltering company.” Under Cal-WARN this applies only to relocations and terminations during an active search for capital, never to a mass layoff, and it requires written notice to the DIR.
“Physical calamity or act of war.” Narrow, and financial trouble does not qualify.
Federal “unforeseeable business circumstances.” This excuse does not exist under Cal-WARN. Employers cite it anyway, and we counter by pleading the state statute.
“We paid severance instead.” Pay in lieu of notice may offset damages but does not erase the violation, and a release buried in the severance packet needs review before signing.
Layoffs That Hide Other Claims
Reduction-in-force selection criteria that skew toward employees 40 and over, employees on leave, or employees who complained can conceal a discrimination or retaliation claim. See discrimination and retaliation.
Group-termination severance packets trigger the federal OWBPA 45-day window and a disclosure list of the ages and job titles in the decisional unit. That is discrimination evidence in plain sight. See severance review.
And because WARN claims run as class actions, one employee’s call can open a claim for the entire layoff list. See class actions and PAGA.
What Is a WARN Claim Worth?
The statutory remedy is formulaic: up to 60 days of pay and benefits per employee, plus penalties and fees. Multiply that across a 200-person layoff and the class exposure reaches seven figures.
Individual recoveries are more modest, but they stack with severance-negotiation leverage and any discrimination claims.
Deadlines
Cal-WARN carries no express limitations period. Courts have applied a three-year statutory-liability period, and shorter theories exist, so treat the deadline as urgent.
Your severance-offer deadlines run faster than any statute: 21 or 45 days under the federal OWBPA if you are 40 or over.
What to Do Right Now
- Keep the notice letter, the termination email, and every version of the severance offer.
- Write down the headcount facts: how many people lost jobs, at which site, over what dates.
- Do not sign a release before a review.
- File for EDD unemployment immediately, and check your CalFresh eligibility.
- Book the free case review and bring the layoff-list details.
Frequently Asked Questions
My company laid off 45 people. Am I covered?
The 50-person trigger counts a rolling 30-day window with aggregation rules. Close counts deserve a lawyer’s math.
Do Remote Employees Count Toward Cal-WARN Thresholds?
Unsettled and fact specific. Courts look at the establishment the employee reports to.
Does My Severance Cancel My WARN Claim?
Only a signed release does. Offsets reduce damages, but a waiver gives them up entirely.
My employer says the company ran out of money. Does that excuse notice?
The faltering-company excuse never applies to a mass layoff under Cal-WARN.
The notice said my job ends today. Is that legal?
Pay in lieu may offset damages, but a notice shortfall is still owed.
I was a temp through a staffing agency. Am I covered?
It depends on who the employer of record is and the site headcount. Worth a free review.
How Long Do I Have to Bring a WARN Claim?
Treat three years as the outer edge and act now. The severance clocks are shorter.
Employment Law Resources
- Labor Code 1400 through 1408, the Cal-WARN Act: leginfo
- SB 617 (2025), Cal-WARN notice additions effective 1/1/2026: leginfo
- California EDD, WARN information and employee resources: edd.ca.gov
- U.S. Department of Labor, federal WARN Act worker guide: dol.gov
- CalFresh food assistance, helpline 877-847-3663: getcalfresh.org
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