In this guide8 sections
In April 2025, the Southern Minnesota Beet Sugar Cooperative announced it would close the Spreckels Sugar plant near Brawley, the last sugar beet processing plant in California. If you lose your job when a California plant closes, you have specific rights: 60 days’ advance notice in many cases, full final pay on your last day, a voice through your union if you have one, time to review any severance offer, and unemployment and retraining help.
Key takeaways
- Spreckels said processing would wind down in summer 2025, with warehousing and shipping continuing into late 2025 or early 2026.
- A covered California plant generally must give 60 days’ written notice before closing (Labor Code §1401); missing notice can mean up to 60 days of back pay and benefits.
- All final wages, including earned vacation, are due on your last day if you are laid off (Labor Code §§201, 227.3).
- Unionized workers can use effects bargaining to negotiate severance and transition terms.
What happened in Brawley
On April 22, 2025, the cooperative told employees it would decommission its Brawley factory, which had operated for nearly 100 years. It cited losses over more than a decade, falling sugar prices, competition from imported sugar and the cost of upgrading an aging plant. It said it had invested nearly $100 million in the facility over the prior ten years and would focus on its Minnesota factory.
News reports at the time described a workforce of roughly 100 full-time employees plus several hundred seasonal or part-time workers, and a WARN notice filed in April 2025 listed 394 affected employees. The company said it would offer severance, job placement services, retraining and counseling, and that it would bargain with the union over the effects of the closure. The closure also left local growers without an in-state processor for their beets. Follow announced closures on our California layoff tracker.
Advance notice under Cal-WARN
California’s WARN Act covers a facility that employs, or employed in the past 12 months, 75 or more people, counting workers employed at least 6 of the prior 12 months. Before shutting down all or substantially all operations, the employer generally must give 60 days’ written notice to affected workers, EDD, the local workforce board and local officials. Since January 1, 2026, the notice must also include information on CalFresh food assistance and rapid response services.
Without required notice, affected workers may recover back pay and benefits for up to 60 days, or half the days worked if less (Labor Code §1402). Because the 6-of-12-months test decides who counts, short-term seasonal workers may not be counted toward coverage, but they still have every other right on this page. See our guide to Cal-WARN notice rights and the EDD’s WARN page.
Final pay and vacation
| Situation | When final pay is due | Law |
|---|---|---|
| Laid off or plant closes | Immediately, on your last day | Labor Code §201 |
| Earned, unused vacation | With final pay, at your final rate | Labor Code §227.3 |
| Final pay willfully late | Waiting-time penalty, up to 30 days’ wages | Labor Code §203 |
A union contract can change the default vacation payout rule, so check yours. More in our guide to final paycheck rules.
Union effects bargaining and severance
When a unionized employer decides to close, it generally must bargain with the union over the effects on workers, such as severance, recall rights, benefits continuation and the timing of layoffs. Talk to your union representative early and ask what has been agreed.
If you are offered an individual severance agreement, your employer must tell you that you may consult a lawyer and give you at least five business days to decide (Gov. Code §12964.5). It cannot make you sign a release to get wages already owed (Labor Code §206.5). Read severance agreements in California before signing.
Example (hypothetical): Javier worked year-round in the plant’s maintenance crew. On his last day he should receive all wages and unused vacation. If he is offered severance in exchange for a release, he can take at least five business days to review it with his union representative or a lawyer.
Unemployment and retraining
File for unemployment with EDD as soon as your work ends, and report severance or pay in lieu of notice accurately. Seasonal workers may also qualify if they meet EDD’s requirements. Ask EDD and your local workforce board about rapid response services, job placement and retraining. See unemployment benefits in California.
Frequently asked questions
Does Cal-WARN cover seasonal workers?
Seasonal workers employed fewer than 6 of the prior 12 months may not count toward coverage, but final pay and other wage rights still apply.
Do I have to sign a severance agreement?
No. Severance is usually offered in exchange for a release of claims. You can review it and decide within the time allowed.
What if the closure date changes?
Your rights still apply. If the layoff happens earlier than the notice said, you may be owed back pay for the missing notice days.
Can I get unemployment if I received severance?
Often yes, but EDD reviews severance and similar payments to decide whether they affect your benefits.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. If your plant closed without proper notice or your final pay was short, we offer free virtual consultations. Contact us or call (310) 853-3461.
This article is general information about California law as of 2026, not legal advice for your situation. Reading it does not create an attorney-client relationship.
