California WARN Act
On October 1, 2025, Governor Gavin Newsom signed Senate Bill 617, which creates additional employer regulations under the California WARN Act (Cal-WARN). Specifically, the bill adds requirements regarding the information that employers must communicate to employees prior to a mass layoff, termination, or relocation. This California-specific regulation offers greater employee protections than the federal Worker Adjustment and Retraining Notification Act (WARN Act).
The WARN Act—and state-based WARN Acts like Cal-WARN—mandates that employers provide employees with advance notice of upcoming job losses to allow time for transition. The WARN Act also protects communities by forewarning them of changes that could impact the local economy.
In this article, we break down the specifics of Cal-WARN and provide information about how to simplify offboarding by automating WARN Act notifications.
What is Cal-WARN?
Cal-WARN is a set of requirements that certain employers must follow when they plan to conduct a mass layoff, termination, or relocation (defined below). Written notice must be given to the affected employees, the California Employment Development Department (EDD), and other pertinent agencies. Notices need to include the components required by the federal Worker Adjustment and Retraining Notification (WARN) Act, as well as Cal-WARN-specific items. Beginning January 1, 2026, these notices require additional information, detailed later in this article.
Who must comply with the Cal-WARN Act?
Cal-WARN applies to any covered establishment, which is defined as “any industrial or commercial facility or part thereof that employs, or has employed within the preceding 12 months, 75 or more persons.”
As with the federal WARN Act, employees must have been employed for at least 6 of the 12 months preceding the date of required notice in order to be counted.
When is Cal-WARN triggered?
Cal-WARN is triggered when a covered establishment makes a workforce change that meets the definition of a mass layoff, termination, or relocation—including relocation of a call center.
Here is a summary of which workforce changes trigger the Cal-WARN Act and a brief explanation of how these definitions differ from the federal WARN Act:
A mass layoff of 50 or more employees within a 30-day period, regardless of the percentage of the workforce. To meet the federal WARN Act’s definition of a layoff, it must either:
Affect 50 to 599 full-time employees, constituting at least 33% of the full-time workforce, within a 30-day period, or
Affect 500 or more employees regardless of percentage of workforce.
A termination, meaning the “cessation or substantial cessation of industrial or commercial operations in a covered establishment,” impacting any amount of employees.
To meet the federal WARN Act’s definition of a plant closure, it must affect 50 or more employees during a 30-day period.
A relocation of at least 100 miles that impacts any amount of employees.
Under the federal WARN Act, a relocation may trigger WARN if it meets the definition of a plant closure or layoff.
A relocation of a call center to a foreign country, regardless of the percentage of workforce affected.
Like above, a relocation may trigger WARN if it meets the definition of a plant closure or layoff.
How much advance notice is required by the Cal-WARN Act?
Like the federal WARN Act, Cal-WARN requires a minimum 60-day notice before the workforce reduction takes place. Any notice less than 60 days leaves the employer liable for employee pay and benefits.
Who must be notified when Cal-WARN is triggered? And how?
Written notice must be given to:
Affected employees (or their representatives),
The Local Workforce Development Board, and
The chief elected official of each city and county government within which the termination, relocation, or mass layoff occurs.
Employers must notify employees via a delivery method that ensures receipt, such as first-class mail, personal delivery with an optional signed receipt, or a notice in the employee’s pay envelope. Note that a ticket or preprinted notice regularly included in a paycheck or pay envelope does not fulfill the requirements of Cal-WARN.
What information does the Cal-WARN notice need to include?
Prior to the enactment of SB 617, Cal-WARN notices could simply mirror the content of the federal WARN Act and be considered valid. However, effective January 1, 2026, notification under the Cal-WARN Act must include additional information beyond what is required by the federal WARN Act.
Written Cal-WARN notices must include the following. Newer requirements are noted with an asterisk (*).
Name and address of the employment site where the mass layoff, plant closure, or relocation will occur,
*A functioning phone number and email of a company official to contact for more information,
A statement that says whether the planned action will be permanent or temporary,
A statement that says whether the entire plant will be closed,
The expected date of the first separation and the expected schedule for subsequent separations,
The job titles of affected positions and the number of employees to be laid off in each job title,
For a layoff affecting multiple locations, list the job titles and the number of affected employees by job title for each location. Please refer to this for multiple impacted locations,
*A statement indicating whether the company plans to coordinate services (such as rapid response orientation) through the Local Workforce Development Board, through another entity, or does not plan to coordinate services with any entity,
*A functioning email and telephone number for the Board, along with the following description of the rapid response activities offered by the Local Board:
"Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career."
Note: If the employer opts to coordinate services with the local workforce development board or other entity, SB 617 requires the employer to arrange these services within 30 days from the date of the Cal-WARN notice date,
*A short description of Cal-Fresh, the number for the Cal-Fresh benefits helpline (1-877-847-3663), and a link to the Cal-Fresh website (https://calfresh.dss.ca.gov/food/),
List if bumping rights exist,
The name of each union representing affected employees, if applicable, and
The name and address of the chief elected officer of each union, if applicable.
Are there exceptions to the Cal-WARN Act?
Yes. There are several exceptions to the Cal-WARN Act.
Project work. Cal-WARN does not apply when workforce changes result from the completion of a particular project. Examples include the Motion Picture Industry, Construction, Drilling, Logging and Mining Industries, and seasonal employment.
Seasonal work. Notice requirements do not apply to employees involved in seasonal employment where the employees were hired with the understanding that their employment was seasonal and temporary.
Physical calamity or act of war. Notice is not required if a mass layoff, relocation, or plant closure is necessitated by a physical calamity or act of war.
Seeking capital. Notice of a relocation or termination is not required where, under multiple and specific conditions, the employer submits documents to the Department of Industrial Relations (DIR), and the DIR determines that the employer was actively seeking capital or business and that a WARN notice would have precluded the employer from obtaining the capital or business.
What if an employer does not comply with Cal-WARN?
Violating the Cal-WARN Act can result in costly penalties for employers, including up to $500 per day in civil penalties. More notably, impacted employees may choose to pursue a class action lawsuit against an employer for violating their rights under the CAL-WARN Act.
Additionally, if employers do not adhere to Cal-WARN, affected employees may be entitled to:
Sixty days* of back pay at each employee’s final pay rate or three-year average rate of compensation, whichever is higher; and
The value of the cost of any benefits each employee may have been entitled to, up to a maximum of 60 days*;
*Or one-half the number of days that the employee was employed by the employer, whichever is less.
An employer’s liability may be reduced by any wages paid during the violation period; any “voluntary and unconditional payments” made by the employer to the employee that were not required to satisfy any legal obligation; and any payments by the employer to a third party or trustee, such as benefits premiums or pension contributions.
Employers must have processes in place to ensure compliance with Cal-WARN and mitigate legal risk.
Does Onwards HR help employers comply with Cal-WARN?
California employers must understand and comply with the Cal-WARN Act to ensure all affected employees receive appropriate notice of WARN-triggering events. Onwards HR’s offboarding compliance platform helps employers adhere to state-specific separation laws like Cal-WARN.
Onwards HR uses built-in compliance tools to evaluate for WARN Act applicability and, if triggered, automatically generates the necessary notifications.
Are you ready to streamline your offboarding process? Request a meeting to learn more.
