In this guide11 sections
- 1. What happened in Hollister
- 2. Your union’s right to meet and confer
- 3. Seniority, bumping and recall
- 4. Due process before a layoff
- 5. Does Cal-WARN apply to a city?
- 6. Final pay, health coverage and unemployment
- 7. When a layoff may be unlawful
- 8. What to do if a notice is withdrawn or reissued
- Laws this article relies on
- Frequently asked questions
- Talk to a California employment lawyer
If you work for a California city and receive a layoff notice, your rights come mainly from the Meyers-Milias-Brown Act, your union contract and your city’s personnel rules, not the private-sector rules most layoff guides describe. Hollister’s council recently withdrew dozens of termination notices, and its mayor warned that new ones could follow.
- A city’s decision to lay off is generally a management call, but the timing, number, selection and effects of layoffs are generally subjects it must meet and confer on with your union.
- Seniority, bumping and recall rights usually come from your union contract and local personnel rules.
- Do not count on Cal-WARN’s 60-day notice: its text targets an “industrial or commercial facility,” and federal WARN rules exclude regular local governments.
- Labor Code §220(b) exempts cities from the Labor Code’s main final-pay and waiting-time-penalty sections, so your contract and local rules matter more.
- Deadlines can be short: six months for a PERB charge, possibly less for a local appeal.
1. What happened in Hollister
BenitoLink reported on Oct. 28, 2026, that the Hollister City Council unanimously withdrew termination notices for at least 37 city employees after a special closed session on Oct. 26. The layoffs had been set for Nov. 13. The Hollister Free Lance reported 36 notices, and a KSBW headline put the number at 35.
Watch the KSBW Action News 8 report: “Hollister City Council reverses layoffs for 35 city workers” (KSBW Action News 8, October 27, 2026)
BenitoLink reported that the mayor warned the notices could be reissued if negotiations with the unions don’t produce enough savings, saying, “We need some very solid concessions from all of our unions.” It reported that the Hollister Police Officers Association had eight members on the termination list and SEIU Local 521 had 16.
The Free Lance reported on Oct. 20 that the notices went out Oct. 14 with 30 days of administrative leave. It reported on Oct. 27 that the council reversed a financial emergency declaration on Oct. 19 and voted Oct. 21 to end the city manager’s contract. As of Nov. 2, 2026, we found no report saying concessions had been reached or new notices issued.
2. Your union’s right to meet and confer
The Meyers-Milias-Brown Act (MMBA) (Gov. Code §3500 et seq.) covers cities, counties and special districts. It requires a local agency to meet and confer in good faith with recognized unions on wages, hours and other terms and conditions of employment, and to fully consider their presentations before deciding on a course of action (§3505).
The Public Employment Relations Board (PERB) has said a decision to lay off is not itself within the scope of representation. But where a layoff is driven by labor costs, PERB has treated its timing, number and the identity of affected employees as mandatory subjects, along with effects such as the workload and safety of those who remain. PERB has also said a union need not offer concessions and that alternatives it proposes are appropriate for negotiation, though a union offering no sufficient concessions can’t claim a refusal to bargain over the number of cost-driven layoffs.
Related rules:
- Accurate information: Knowingly giving a union inaccurate information about the employer’s finances is treated as a failure to bargain in good faith (§3506.5(c)).
- Impasse: If talks stall, your union may be able to request factfinding (§3505.4). After any applicable mediation and factfinding, and a public hearing, an agency not subject to interest arbitration may impose its final offer, but it may not impose a memorandum of understanding (§3505.7).
The bargaining right generally belongs to the union. PERB says an individual employee can’t file a charge claiming the employer failed to bargain in good faith, though you can file over reprisals or interference with your own rights. PERB also says it does not enforce union contracts, and that its MMBA jurisdiction excludes police officers, so sworn officers should ask their association where disputes go. More in our guide to public employee rights.
3. Seniority, bumping and recall
No single state statute sets the layoff order for every California city. These rights usually come from your memorandum of understanding (MOU), civil service or merit rules, and personnel policies. Look for:
- Order of layoff: how seniority is measured, and whether it runs by classification, department or citywide.
- Bumping: whether you may displace a less senior employee in a lower or former classification, and how fast you must choose.
- Recall: how long you stay on a reemployment list, how the city must contact you, and what happens if you decline an offer.
- Appeals and grievances: who hears them and how many days you have. Windows can be short.
Hypothetical example. Dana, a maintenance worker with nine years at a fictional city, receives a layoff notice that is later withdrawn. Months later a new one arrives. Her MOU lets her bump into a lower classification she once held, but she must elect in writing within a few days. She tells her union representative the day the notice arrives, confirms her seniority date and elects on time.
Election and appeal windows can be short. Read the deadlines in your notice, tell your union representative, then get advice on your options.
4. Due process before a layoff
Permanent public employees who can be removed only for cause generally have a property interest in their jobs. Under a 1975 California Supreme Court decision, that usually means notice of the proposed action and the reasons, the supporting materials, and a chance to respond before discipline takes effect.
Layoffs are different. California appellate decisions from 2000 and 2011 held that pre-layoff hearings weren’t required for budget-driven layoffs, reasoning in part that objective criteria such as seniority reduce the risk of error. They left room for an exception where a layoff is a pretext, especially when one or a few positions are targeted. A 2008 federal appeals decision involving a California city found a due process violation when a civil servant was laid off without a hearing, so the law is not uniform. Probationary, temporary and at-will employees generally don’t have the same protection. If you believe you were singled out, ask promptly about any hearing or appeal right.
5. Does Cal-WARN apply to a city?
Probably not in the ordinary case. Cal-WARN’s 60-day notice rule applies to a “covered establishment,” defined as an “industrial or commercial facility” with 75 or more people, and it defines “employer” through the Labor Code’s definition of “person” (§§1400.5, 18), which doesn’t name government bodies. In a 2024 decision on meal and rest break rules, the California Supreme Court said §18’s language “affirmatively indicates” government employers aren’t covered, while adding that the definition alone isn’t dispositive. That decision did not address Cal-WARN, and we have not located a California appellate decision that does. A 2026 bill, AB 2530, proposed adding public agencies to Cal-WARN, but it was held in an Assembly committee in May.
The federal rule is more explicit: federal WARN regulations say regular state and local governments are not covered, although a separately organized public entity engaged in business may be. For private employers, see our guide to Cal-WARN notice rights. A city employee’s advance-notice rights, if any, typically come from the MOU or local rules.
6. Final pay, health coverage and unemployment
| Issue | General rule for city employees | Where to look |
|---|---|---|
| Final pay timing | Labor Code §§200–211 and 215–219, including final-pay and waiting-time-penalty sections, don’t apply to employees directly employed by a city (§220(b)) | MOU, personnel rules, payroll office |
| Accrued leave | Whether Labor Code §227.3 reaches public employers has not been clearly decided; payout terms are commonly in local documents | MOU, personnel rules |
| Health coverage | Federal public-sector COBRA generally applies to plans of state and local employers with 20 or more employees: usually up to 18 months, premium up to 102% of plan cost | Election notice, plan administrator |
| Unemployment | Benefits of $40 to $450 a week if you qualify, after a one-week unpaid waiting period | EDD |
The rules in our final paycheck guide are private-sector rules. You generally have 60 days to enroll in COBRA, counted from when coverage ends or when you receive the election notice, whichever is later.
For unemployment, EDD looks for enough base-period wages, unemployment through no fault of your own, being able and available to work, and a weekly job search. A layoff generally fits “no fault,” but if you are still on paid leave your benefits may be affected, so report all pay accurately. EDD also reviews severance and pay in lieu of notice. Our unemployment guide has more. If you are offered a separation agreement, see our guide to severance agreements before signing; Gov. Code §12964.5 generally requires notice of your right to consult an attorney and at least five business days to do so.
7. When a layoff may be unlawful
A budget reason doesn’t excuse an unlawful selection:
- FEHA: Choosing people for layoff because of age, race, sex, disability, pregnancy or another protected trait can violate Gov. Code §12940. A CRD complaint generally must be filed within three years of the last harm.
- Whistleblower law: Labor Code §1102.5 protects reports of suspected legal violations, and §1106 expressly includes city employees.
- MMBA: Targeting someone for union activity can be an unfair practice (§3506.5(a)). A PERB charge generally must be filed within six months of when you knew or should have known of the conduct.
- Government claims: Some money claims against a city must first be presented as a written government claim, in some cases within six months (Gov. Code §911.2). Public employees’ claims for salaries and wages are excepted (§905(c)).
An employer may respond that the budget was the real reason or that the seniority list was followed. Dated records of who was chosen help answer those points. See our guide to retaliation claims in California.
8. What to do if a notice is withdrawn or reissued
- Keep every notice and rescission letter.
- A new notice may start new election and appeal periods.
- Contact your union representative the same day.
- Collect your MOU, personnel rules, seniority list and recent evaluations.
- Ask payroll in writing about final pay, leave balances and coverage end dates.
- Apply for unemployment once you lose work, and calendar your COBRA and appeal deadlines.
Laws this article relies on
| Law | What it does here |
|---|---|
| Gov. Code §3500 et seq. (MMBA) | Meet-and-confer duty for cities, counties and special districts |
| Labor Code §220(b) | Exempts cities from main final-pay sections |
| Labor Code §§1400.5, 18 | Cal-WARN coverage definitions |
| Gov. Code §12940 | FEHA limits on who can be selected |
| Labor Code §§1102.5, 1106 | Whistleblower protection, including city employees |
News sources: BenitoLink (October 28, 2026); Hollister Free Lance (October 27, 2026); Hollister Free Lance (October 20, 2026).
Frequently asked questions
Can a California city lay me off because of a budget shortfall?
Generally yes. A city can usually decide to reduce its workforce, but it must meet and confer on implementation and effects, follow its contract and local rules, and not select people for unlawful reasons.
If my layoff notice was rescinded, can the city send another?
Generally it can, subject to bargaining duties and your contract and local rules.
Does a city have to give me 60 days’ notice?
Not under federal WARN if it is a regular local government, and Cal-WARN’s text does not appear aimed at ordinary city governments. Your MOU or personnel rules may set a notice period.
Am I entitled to a hearing before a layoff?
Often not for a budget-driven layoff, but local rules may give you an appeal. A layoff used as a pretext to remove a particular employee can raise due process issues.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. If you believe you were chosen for a layoff because of discrimination or retaliation, 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.
