In this guide9 sections
In July 2025, E. & J. Gallo Winery said it would permanently close its Courtside production facility in San Miguel, in San Luis Obispo County, affecting 47 jobs. If your California workplace is closing, you may be entitled to advance notice, full final pay on your last day, time to review any severance offer, and unemployment benefits.
Key takeaways
- A covered California employer generally must give 60 days’ written notice before closing a facility, even if fewer than 50 people still work there (Labor Code §§1400.5, 1401).
- When 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 (Gov. Code §12964.5).
- File for unemployment with EDD as soon as your work ends.
What Gallo announced
According to a July 26, 2025 report, a Gallo filing said the San Miguel closure would involve “cessation of all operations and termination of all employees at the site,” with layoffs starting in September 2025 and the facility closing December 1, 2025.
News reports in February 2026 said Gallo filed a WARN notice to close its Ranch Winery in St. Helena, affecting 56 workers. Follow announced closures on our California layoff tracker.
Does Cal-WARN apply to a small closure?
It can. California’s WARN Act (Labor Code §§1400–1408) covers an industrial or commercial 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. A covered employer generally must give 60 days’ written notice before:
- A termination: stopping all or substantially all operations at the facility.
- A mass layoff: laying off 50 or more employees in any 30-day period.
- A relocation: moving operations 100 miles or more away.
A full closure is a “termination,” so the 50-employee mass layoff count doesn’t control. What matters is whether the site had 75 or more qualifying employees in the prior 12 months, even if fewer remain when it closes.
Notice goes to affected employees, EDD, the local workforce board and local officials (see EDD’s WARN page). Since January 1, 2026, it must also explain rapid response services and CalFresh food assistance. Without required notice, affected employees may recover back pay and benefits for up to 60 days, or half the days worked if less (§1402), and the employer may face a civil penalty of up to $500 per day (§1403). More on Cal-WARN notice rights.
Example (hypothetical): Luis is a cellar worker at a winery that had 80 qualifying employees last year but 40 when it closes with two weeks’ notice. He may still be owed back pay for the missing notice period.
Your final paycheck and vacation payout
| Situation | When final pay is due | Law |
|---|---|---|
| Laid off or facility closes | Immediately, on your last day | Labor Code §201 |
| You quit with 72 hours’ notice | On your last day | Labor Code §202 |
| You quit with less notice | Within 72 hours | Labor Code §202 |
| Earned, unused vacation | With final pay, at your final rate | Labor Code §227.3 |
A willfully late final check may trigger a waiting-time penalty of a day’s wages for each day late, up to 30 days (§203). See the Labor Commissioner’s final pay FAQ and our guides to final paycheck rules and vacation payout.
Severance: read before you sign
California generally does not require severance. When offered, it usually comes in exchange for releasing legal claims. Your employer must tell you that you may consult a lawyer and give you at least five business days to decide, and it cannot make you sign a release to get wages you are already owed (Labor Code §206.5). See our guide to severance agreements.
When a closure-related layoff may be unlawful
Closing a facility for business reasons is legal. But if only some workers are let go or offered transfers, the choices may be unlawful if based on a protected trait such as age or disability, a wage or safety complaint, or protected leave. Keep your notice, pay stubs, final check and dated notes.
Unemployment and retraining
File with EDD as soon as your work ends. EDD reviews severance and pay in lieu of notice to decide whether they affect your benefits. Your local workforce board offers job search and training help. More in our unemployment guide.
Frequently asked questions
Fewer than 50 of us were laid off. Do we get WARN notice?
Possibly. Closing a facility that had 75 or more qualifying employees in the past 12 months generally requires 60 days’ notice.
Does my employer have to pay severance?
Generally no, unless a union contract, written policy or agreement promises it.
I was offered a job at another site. Do I have to take it?
No, but turning down a comparable offer may affect unemployment eligibility. EDD decides based on your facts, so explain your reasons when you file.
What if my final paycheck is late or short?
Your employer may owe waiting-time penalties. You can file a claim with the Labor Commissioner or talk to a lawyer.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. We offer free virtual consultations if your workplace is closing or your final pay was short. 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.
