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Employment Law

Kroger Closing 60 Stores: What It Means for Workers

In June 2025, Kroger said it would close about 60 stores nationwide over the next 18 months.

Reviewed by Jonathan P. LaCour, Esq. CEO · Senior Trial Counsel

Updated 4 min read

In this guide9 sections
  1. Key takeaways
  2. What Kroger announced
  3. Cal-WARN: 60 days’ notice before a closure or mass layoff
  4. Your final paycheck and vacation payout
  5. Severance agreements: read before you sign
  6. Unemployment and union rights
  7. Retaliation if you speak up
  8. Frequently asked questions
  9. Talk to a California employment lawyer

In June 2025, Kroger said it would close about 60 stores nationwide over the next 18 months. If you work at a Kroger-owned store in California, such as Ralphs or Food 4 Less, a closure or layoff comes with specific rights: advance notice in many cases, full final pay on your last day, time to review any severance offer, and unemployment benefits.

Key takeaways

  • Covered California employers generally must give 60 days’ written notice before a closure, mass layoff 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 (Gov. Code §12964.5).
  • File for unemployment with EDD as soon as your work ends.

What Kroger announced

In its first-quarter 2025 results, released June 20, 2025, Kroger said it recorded a $100 million impairment charge related to closing approximately 60 stores over the following 18 months. It said it would offer roles in other stores to all associates at affected stores, but did not list which stores would close. Follow announced closures on our California layoff tracker.

Cal-WARN: 60 days’ notice before a closure or mass layoff

California’s WARN Act (Labor Code §§1400–1408) covers a commercial or industrial 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. The employer generally must give 60 days’ written notice before:

  • A termination: shutting down all or substantially all operations, such as closing a store.
  • A mass layoff: laying off 50 or more employees in any 30-day period.
  • A relocation: moving operations 100 miles or more away.

Notice goes to affected employees, EDD, the local workforce board and local officials. Since January 1, 2026, it must also include CalFresh information and rapid response contact details (see EDD’s guidance on the 2026 amendments). Limited exceptions exist; the federal WARN Act may also apply.

Without required notice, affected employees may recover back pay and lost benefits for up to 60 days, or half the days worked if less (§1402). The employer may also face a civil penalty of up to $500 per day (§1403), and workers who win in court may recover attorney’s fees (§1404). More on severance, layoffs and the WARN Act.

Your final paycheck and vacation payout

SituationWhen final pay is dueLaw
Laid off or store closesImmediately, on your last dayLabor Code §201
You quit with 72 hours’ noticeOn your last dayLabor Code §202
You quit with less noticeWithin 72 hoursLabor Code §202
Earned, unused vacationWith final pay, at your final rateLabor 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 guide to final paycheck rules.

Example (hypothetical): Rosa’s 120-employee grocery store gives three weeks’ notice of closing. She may be owed back pay for the missing notice days, plus unused vacation in her final check.

Severance agreements: read before you sign

California generally does not require severance pay. When offered, it usually comes in exchange for giving up legal claims. Your employer must tell you that you may consult a lawyer and give you at least five business days to decide. It cannot make you sign a release to get wages you are already owed (Labor Code §206.5). See our guide to severance agreements.

Unemployment and union rights

File with EDD as soon as your work ends. EDD reviews severance, pay in lieu of notice and similar payments to decide whether they affect your benefits, so report them accurately. More in our unemployment guide.

Many Southern California grocery workers are unionized; July 2025 news reports said UFCW contracts at Ralphs, Albertsons, Vons and Pavilions cover more than 45,000 workers. A union contract may control transfers, seniority, severance and grievance deadlines, and can change the default vacation payout rule. Talk to your union representative early.

Retaliation if you speak up

Your employer cannot retaliate because you complained about unpaid wages (Labor Code §98.6) or reported a suspected legal violation (§1102.5). If you were picked for layoff soon after complaining, keep notes with dates, plus your notice, pay stubs, final check and any offers.

Frequently asked questions

Does Cal-WARN apply if only my store closes?

It can. If the store had 75 or more qualifying employees, a closure generally requires 60 days’ notice.

I was offered a transfer. Do these rules still matter?

Yes. If you decline and your job ends, final pay rules apply, and EDD decides unemployment eligibility on your facts.

Does my employer have to pay severance?

Generally no, unless a union contract, policy or agreement promises it.

What if my final paycheck is late?

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 store 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.

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