Layoffs in California: Your Cal-WARN Notice Rights

Under California’s WARN Act, an employer with 75 or more employees at a California facility must give you 60 days’ written notice before a mass layoff, closure or relocation, or pay you up to 60 days of wages and benefits instead. The California law, Labor Code 1400 through 1408, reaches more employers and more layoffs than the federal WARN Act.

The money can be significant. For a worker earning $1,200 a week, 60 days of back pay is more than eight weeks of wages, plus the value of lost health and other benefits, and the employer may also owe your attorney’s fees. Many workers never learn that a sudden layoff violated the law.

This guide explains who Cal-WARN covers, what triggers the notice requirement, the new notice rules for 2026, the exceptions employers claim, what you can recover, what you are owed on your last day no matter what, and what to do next.

Who Cal-WARN covers

Cal-WARN applies to a covered establishment: any industrial or commercial facility, or part of one, that employs or has employed 75 or more people within the preceding 12 months (Labor Code 1400). Part-time workers count toward the 75.

To be protected as an “employee” under the statute, you generally must have worked for the employer for at least 6 of the 12 months before the date notice was required.

The test looks at a single establishment, not the whole company. A large employer with a small California office may not be covered for that office, while a mid-size company with one big California warehouse may be. That establishment-by-establishment analysis is one of the most common places where coverage is disputed.

By the numbers60 days

What triggers the 60-day notice

An employer at a covered establishment must give 60 days’ notice before any of three events (Labor Code 1401):

Event	What it means	How many workers
Mass layoff	Separation from a position for lack of funds or lack of work	50 or more employees within any 30-day period
Termination	Ending all or substantially all operations at the establishment	No minimum number
Relocation	Moving all or substantially all operations 100 miles or more away	No minimum number

Two differences from federal law stand out. Cal-WARN’s mass-layoff trigger is 50 employees at the site regardless of what percentage of the workforce that is, and closures and relocations are covered even if fewer than 50 people lose their jobs. The federal WARN Act generally applies only to employers with 100 or more employees and has its own thresholds.

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What the notice must say, and who gets it

The written notice must go to each affected employee, the Employment Development Department, the local workforce development board, and the chief elected officials of the city and county where the layoff happens. It must include the information federal WARN requires, such as the expected date of separation and whether the action is permanent or temporary.

Senate Bill 617 added new content requirements for notices issued on or after January 1, 2026. Among other things, the notice must now:

• State whether the employer plans to coordinate job-transition services through the local workforce development board or another entity;
• Describe the local workforce development board’s services and give its contact information;
• Describe the CalFresh food assistance program and give its benefits helpline and website;
• Give a contact at the employer, with a phone number and email address.

A notice that arrives on time but leaves out required information may not satisfy the law. Keep every notice you receive, including the envelope or email showing the date.

Exceptions and defenses employers raise

Cal-WARN has limited exceptions. Employers commonly argue:

• Physical calamity or act of war. Notice is not required for layoffs caused by events like fire, flood or earthquake.
• Seeking capital or business. For closures and relocations (not mass layoffs), an employer actively seeking financing that would have avoided the shutdown, and that reasonably believed notice would have prevented it, may be excused, subject to approval by the Department of Industrial Relations.
• Seasonal or project work. Certain construction, seasonal and project-based jobs are excluded where workers were hired with the understanding the work was temporary.
• Not enough people. Employers sometimes stagger cuts across 30-day windows or argue that workers at different sites cannot be added together. Look closely at the dates and locations.

These defenses are fact-specific, and the employer generally has to prove them. Do not assume an employer is right just because it says notice was not required.

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What you can recover

If your employer failed to give required notice, Labor Code 1402 makes it liable to each affected employee for:

• Back pay at the higher of your average regular rate over your last three years or your final regular rate;
• The value of lost benefits, including medical expenses that would have been covered under an employee benefit plan;
• For the period of the violation, up to 60 days, but no more than half the number of days you were employed.

Wages paid for the violation period and certain voluntary payments the employer made can reduce what it owes. A court may also award reasonable attorney’s fees to a worker who prevails (Labor Code 1404). Separately, the employer is subject to a civil penalty of up to $500 per day of violation, unless it pays all affected workers what they are owed within three weeks of ordering the layoff (Labor Code 1403).

💡 Example: Marco has worked for 4 years at a 200-person distribution center. On March 1 he and 80 coworkers receive a notice that their jobs end on March 15, just 14 days later. The employer was 60 − 14 = 46 days short of the required notice. Marco may be owed pay and benefits for that 46-day violation period, at the higher of his final rate or his three-year average rate.

By the numbers$500

What you are owed on your last day, Cal-WARN or not

Every California worker who is laid off is entitled to these, regardless of employer size:

• Final paycheck on your last day. A layoff is treated like a termination, so all earned wages are due immediately (Labor Code 201). Late pay can trigger up to 30 days of waiting-time penalties.
• Accrued vacation or PTO, paid out at your final rate (Labor Code 227.3).
• Unpaid commissions, overtime and break premiums that were already earned.
• Required notices, including the EDD’s unemployment insurance pamphlet and a written notice of change in employment status.

Severance is generally not required by law, but if you are offered it, read our guide to reviewing a severance agreement before signing. A release in a severance agreement may waive your Cal-WARN claim.

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What to do if you were laid off without proper notice

1. Save everything: the layoff notice or email, your final pay stub, benefits information, and any message about the layoff.
2. Write down the numbers: how many people were let go at your site and on what dates, and how many people worked there over the past year.
3. Check your final paycheck for every hour, vacation day and commission owed.
4. Do not sign a release until you understand whether it waives your Cal-WARN claim.
5. Apply for unemployment right away. See our guide on unemployment after losing your job.
6. Talk to an employment lawyer about Cal-WARN, final pay, and how people were chosen for the layoff.

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Layoffs are often the tip of the iceberg

A “layoff” is sometimes cover for an unlawful firing. If the people selected were mostly older, pregnant, on medical leave, or had recently complained about safety, pay or harassment, the selection itself may be discriminatory or retaliatory, and those claims can be worth far more than Cal-WARN back pay. Workers 40 and older who are offered severance in a group layoff are entitled to information about the ages of the people selected and not selected. If a layoff seems aimed at certain people, read about wrongful termination claims.

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Frequently asked questions

Does Cal-WARN apply to small businesses?

Only if the establishment has employed 75 or more people in the past 12 months. Smaller employers do not have to give Cal-WARN notice, but they must still pay final wages on time.

What if my employer paid me for 60 days instead of giving notice?

Pay and benefits in lieu of notice can satisfy the employer’s back pay obligation. Check that the payment covered both wages and benefits for the full period.

Does a temporary furlough count?

It depends on the facts, including whether workers were truly separated from their positions and for how long. Furloughs and “temporary” layoffs that become permanent are a common source of disputes.

Can I collect unemployment and Cal-WARN pay?

You should apply for unemployment immediately. Pay in lieu of notice may affect benefits for the weeks it covers, so report all payments accurately to the EDD.

I worked remotely. Am I covered?

Possibly. Remote workers are often assigned to the establishment they report to or are managed from. This is a fact-specific question for a lawyer.

Is Cal-WARN back pay the same thing as severance?

No. Cal-WARN back pay is a legal remedy you may be owed when an employer skips the required notice. Severance is a voluntary payment an employer offers, usually in exchange for a release of claims. An employer may argue that severance it paid should reduce what it owes under Cal-WARN, and a release you sign may give up the Cal-WARN claim entirely, so compare the two before you accept an offer.

My employer gave notice but told us to stay home. Is that allowed?

Generally, yes, if you remain on the payroll with full wages and benefits for the notice period. What matters is that you receive the pay and benefits you would have earned during those 60 days. If your pay or health coverage stopped early, the employer may not have complied.

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