In this guide7 sections
Procter & Gamble named a new CEO in July 2025, weeks after saying it would cut up to 7,000 non-manufacturing roles over two years. It can also mean a new boss, a new title, a bigger workload or a request to relocate. If you work in California, the law protects you at each of those points, not just when you are handed a termination notice.
Key takeaways
- California’s WARN Act generally requires 60 days’ notice before a mass layoff, closure, or relocation of 100 miles or more at a covered site.
- If a reorganization gives you mostly routine work, or drops your salary below $70,304 (2026), you may no longer be exempt and could be owed overtime.
- A demotion, transfer or layoff selection based on age, disability, leave or a complaint may violate California law.
- Non-compete clauses are generally void in California, so a severance agreement or job offer cannot lawfully block you from working for a competitor.
What P&G announced
On June 5, 2025, P&G told investors it expected to reduce up to 7,000 roles, about 15% of its non-manufacturing workforce, in a two-year restructuring program that would also include brand exits in certain markets. On July 28, 2025, it named chief operating officer Shailesh Jejurikar as CEO effective January 1, 2026, with outgoing CEO Jon Moeller becoming executive chairman. P&G did not publicly list which roles or locations would be affected. Follow announced California cuts on our layoff tracker.
When your job changes but you keep it
A heavier workload or a new role
Fewer people often means remaining staff absorb more work. If you are paid a salary and treated as exempt, check two things after a reorganization. First, your salary: in 2026, most exempt employees must earn at least $70,304 a year. Second, your duties: you must spend more than half your time on genuinely exempt work and regularly use independent judgment. If your new role is mostly routine tasks, you may be owed overtime. See our guide to the salary and duties tests.
Example (hypothetical): After a restructuring, Priya’s “brand manager” title stays the same, but she now spends most of her day processing orders and updating spreadsheets for a team that lost three people. She works 55 hours a week. Her exempt status may be worth a closer look.
Demotions and transfers
An employer can generally restructure jobs for business reasons. It cannot pick who gets demoted, transferred or cut because of age (40 and over), disability, pregnancy, race, sex or another protected trait, or because you took protected leave or complained about discrimination (Gov. Code §12940). Write down who made the decision, what reason you were given, and who kept their roles.
Relocation requests
Under Cal-WARN, moving all or substantially all of a covered site’s operations 100 miles or more away generally requires 60 days’ notice. If you decline a transfer and your job ends, EDD decides your unemployment eligibility on your facts, so keep the offer and your reasons in writing.
If you are laid off
| Issue | California rule | Law |
|---|---|---|
| Advance notice | 60 days for a mass layoff (50+ in 30 days), closure or relocation at a site with 75+ employees | Labor Code §§1400.5, 1401 |
| Missing notice | Back pay and benefits for up to 60 days | Labor Code §1402 |
| Final pay | Due on your last day, including earned vacation | Labor Code §§201, 227.3 |
| Late final pay | Up to 30 days’ wages as a penalty if willful | Labor Code §203 |
| Severance review | At least five business days to consider | Gov. Code §12964.5 |
If you are 40 or older and offered severance in a group layoff, federal law generally gives you 45 days to review a release of age claims and 7 days to revoke it. Our post on Moderna’s 2025 layoffs walks through those rules, and our guide to severance agreements covers what to negotiate.
Non-competes and your next job
California Business and Professions Code §16600 makes non-compete agreements in employment generally void. A severance agreement may still include confidentiality and trade-secret terms, but it generally cannot keep you from working for a competitor in California. See non-compete agreements are void in California.
Frequently asked questions
Can my employer cut my pay as part of a reorganization?
Generally it can change pay going forward, but not for work already done. Most hourly employees must get written notice of pay changes within seven calendar days, unless the change appears on a timely pay stub (Labor Code §2810.5), and an exempt salary must stay at or above the state minimum.
I was told my role was “eliminated,” but someone younger is doing it. Is that legal?
It may not be. If your duties were reassigned to a younger worker, that can be evidence of age discrimination. Keep records.
Do I have to sign a severance agreement on the spot?
No. California gives you at least five business days, and older workers often get longer under federal law.
Can I collect unemployment if I take severance?
You can generally apply. EDD reviews severance pay to decide whether it affects your benefits, so report it accurately.
Talk to a California employment lawyer
Employees First Labor Law represents workers exclusively. If a restructuring changed your job, your pay or your employment, 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.
