In this guide9 sections
In August 2025, Australian biotech company CSL said it would cut about 15% of its global workforce, roughly 3,000 jobs, and spin off its Seqirus flu vaccine business. In October 2025, it put the spin-off on hold. If you work for CSL or another biotech or life sciences employer in California and your job is cut, you have specific rights: advance notice in many cases, full final pay on your last day, time to review a severance offer, continued health coverage options, and unemployment benefits.
Key takeaways
- Covered California employers generally must give 60 days’ written notice before a mass layoff, closure or relocation (Labor Code §1401).
- If you are laid off, all final wages, including earned vacation, are due on your last day (Labor Code §§201, 227.3).
- You must get at least five business days to consider a separation agreement, and you can’t be required to release wages already owed (Gov. Code §12964.5; Labor Code §206.5).
- Inventions you develop entirely on your own time, without company resources, are generally yours (Labor Code §2870).
What CSL announced
With its full-year results in August 2025, CSL said it would reduce its workforce by about 15%, or around 3,000 positions, as part of a restructuring aimed at cutting about US$500 million from its cost base. News reports said the plan included consolidating research and development sites from 11 to six, combining some administrative functions, and closing 22 underperforming plasma collection centers. CSL also planned to demerge CSL Seqirus into a separately listed company.
At its annual meeting in late October 2025, CSL shelved the Seqirus spin-off, citing volatility in the U.S. flu vaccine market and lower-than-expected vaccination rates. It said the demerger would go ahead when market conditions support it. CSL did not publish a breakdown of job cuts by state, so we don’t know how many California positions were affected. You can follow announced cuts on our California layoff tracker.
Advance notice under Cal-WARN
California’s WARN Act generally requires a covered establishment, one that employs or employed 75 or more people in the past 12 months, to give 60 days’ written notice before a closure, a layoff of 50 or more employees within 30 days, or a relocation of 100 miles or more. Without required notice, affected workers may recover up to 60 days of back pay and benefits (Labor Code §1402). The federal WARN Act may also apply. More on Cal-WARN notice rights.
Final pay and vacation
If you are laid off, your employer must pay all wages owed on your last day, including earned, unused vacation at your final rate of pay. A willfully late final check can trigger a waiting-time penalty of up to 30 days’ wages (Labor Code §203). See final paycheck rules.
Severance and health coverage
California generally does not require severance. When it is offered, it usually comes in exchange for a release of claims. You must be told you may consult a lawyer and given at least five business days to decide. Read severance agreements in California before you sign.
If your employer had 20 or more employees and a group health plan, federal COBRA law generally lets you continue coverage for a limited time, though you may have to pay up to 102% of the premium (U.S. Department of Labor).
Researchers and your inventions
Scientists and engineers often sign invention assignment agreements. Under Labor Code §2870, those agreements can’t take an invention you developed entirely on your own time without the employer’s equipment, supplies, facilities or trade secrets, unless it relates to the employer’s business or actual or anticipated research, or results from work you did for the employer. Before you leave, keep copies of your own records of personal projects, but don’t take confidential company files.
Example (hypothetical): Priya, a lab scientist at a California biotech company, is laid off in a restructuring. She receives her final pay and vacation on her last day, gets a severance offer with a release, and takes a week to review it with a lawyer before deciding.
Unemployment and retaliation
File for unemployment with EDD as soon as your work ends, and report any severance or pay in lieu of notice accurately. If you were chosen for layoff soon after reporting a safety, data integrity or regulatory concern, the timing may point to retaliation under Labor Code §1102.5.
Frequently asked questions
Does Cal-WARN apply to a global company?
It can. Cal-WARN looks at the California establishment, not where the company is headquartered.
Am I owed severance in a restructuring?
Generally no, unless a contract, policy or plan promises it. Cal-WARN back pay is a separate remedy for missing notice.
What happens to my unvested stock awards?
That depends on your plan documents. Read them and any severance agreement closely before signing.
Can I collect unemployment if I got 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 you were laid off without notice, shorted on your final pay or offered a severance agreement you want reviewed, 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.
