In this guide7 sections
In July 2025, Merck said it would cut about $3 billion in annual costs by the end of 2027, and later confirmed about 6,000 job cuts. When a large employer restructures, the first question for many workers is whether they got the advance notice the law requires. Federal law and California law both require 60 days’ notice in many layoffs, but they apply at different thresholds, and California’s version often covers more workers.
Key takeaways
- The federal WARN Act generally applies to employers with 100 or more full-time employees; California’s WARN Act applies to sites with 75 or more employees.
- Both laws generally require 60 days’ written notice, and both allow back pay and benefits for up to 60 days if notice is missing.
- California employers must file WARN notices with EDD, which publishes them in reports anyone can check.
- Get every document in writing and take your time before signing a severance release.
What Merck announced
With its second-quarter 2025 results, Merck said it planned to save about $3 billion a year by the end of 2027. It said it would eliminate certain administrative, sales and research positions, and reduce its global real estate footprint, while adding roles in growth areas. Days later, the company confirmed to Fierce Pharma that the plan included about 6,000 job cuts, roughly 8% of its workforce. It did not publicly say which sites or states would be affected. Watch California announcements on our layoff tracker.
Federal and California WARN compared
| Federal WARN Act | California WARN Act | |
|---|---|---|
| Who is covered | Employers with 100+ full-time employees (or 100+ working 4,000 hours a week) | Sites with 75+ employees in the past 12 months |
| Layoff trigger | 50+ at a site in 30 days if at least 33% of the workforce, or 500+ regardless | 50+ at a site in 30 days, regardless of percentage |
| Other triggers | Plant closing affecting 50+ employees | Closure, or relocation of 100+ miles |
| Notice | 60 days | 60 days |
| Remedy | Back pay and benefits up to 60 days; up to $500 a day penalty for missing local notice | Back pay and benefits up to 60 days; civil penalty up to $500 a day |
Under both laws, back pay is capped at half the days you were employed if that is less than 60. California’s rules are in Labor Code §§1400–1408; the federal rules are in 20 CFR Part 639. A worker who wins a Cal-WARN case in court may also recover attorney’s fees.
Example (hypothetical): A research site in California has 400 employees. The company lays off 60 of them over two weeks. That is only 15% of the site, so the federal 33% test is not met, but California’s 50-employee trigger is. The employer generally needed to give 60 days’ notice under state law.
How to check whether notice was filed
California employers must send WARN notices to affected employees, EDD, the local workforce board and local officials. EDD posts a WARN report listing notices it receives, with yearly reports going back to 2014. Since January 1, 2026, the notice must also include rapid response and CalFresh information. If your layoff is not listed, or the notice came late, keep a record of the dates.
Steps to take if you are affected
- Ask for everything in writing: your termination notice, last day, and severance terms.
- Save documents: your WARN notice, offer letter, pay stubs, reviews, and the selection criteria you were given.
- Check your final pay: in California, all wages, including earned vacation, are due on your last day. See final paycheck rules.
- Don’t rush a release: California requires at least five business days to review a separation agreement, and workers 40 and older usually get 45 days in a group layoff under federal law. See our guide to severance agreements.
- File for unemployment: apply with EDD right away and report any severance accurately.
- Look at who was selected: if cuts fell heavily on older workers, people on leave or employees who had complained, talk to a lawyer about whether the selection was lawful.
Frequently asked questions
I worked remotely. Am I covered by WARN?
You may be, depending on which site you were assigned to or reported to. This is fact-specific, so keep your offer letter and any notice.
Can my employer pay me instead of giving notice?
Some employers pay wages for the notice period instead. Whether that satisfies the law depends on the details, so have it reviewed.
How long do I have to bring a WARN claim?
Deadlines vary by claim and can be short. Talk to a lawyer promptly after the layoff.
Does WARN apply if I quit before the layoff date?
It may not. Leaving early can affect both WARN pay and severance, so get advice before you resign.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. If you were laid off without proper notice or want a severance agreement reviewed, we offer free virtual consultations. Contact us or call (310) 853-3461. More on our severance and WARN Act page.
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.
