In California, whether an employer can lay you off without advance notice depends on the specific circumstances of the layoff, affected employees, and any applicable federal and California laws.
At-Will Employment:
California is an at-will employment state, which means that typically, an employer can terminate an California employees at any time, with or without cause, and with or without giving advance notice, as long as the termination doesn’t violate any California layoff laws, California labor laws, other employment laws, or employment contracts.
Worker Adjustment and Retraining Notification (WARN) Act
Federal WARN Act: The federal WARN Act requires employers with 100 or more employees provide 60 days’ notice in advance of a plant closing or mass layoff that affects 50 or more employees at a single employment site.
Exceptions: There are exceptions for affected employees, such as unforeseeable business circumstances, natural disasters, or if the employer is actively seeking capital or business that would avoid or delay mass layoffs.
California WARN Act: California’s WARN Act has similar requirements, but applies to employers with 75 or more full-time or part-time employees. Employers must provide 60 days’ notice before a mass layoff, relocation, or termination that affects 50 or more employees.
Exceptions: Like the federal WARN Act, there are exceptions for unforeseen business circumstances and other specific situations.
Immediate Termination:
An immediate termination is permissible under certain circumstances, such as:
- A Violation of Policies: An employer may lay off or terminate an employee without notice for violating company policies, displaying workplace misconduct, or for another justifiable reason.
- Contractual Obligations: If an employment contract or collective bargaining agreement specifies notice requirements, the employer must adhere to those terms.
Severance Agreement and Final Pay:
Severance Pay is not required by law. California law does not require employers to provide severance pay, unless it is stipulated in an employment contract or company policy.
Final Pay, under California law, refers to a situation when an employee is terminated or laid off, the employer must pay all wages owed, including unused vacation time, immediately upon termination.
Legal Recourse
If a California worker believes they were improperly terminated, they can fight for what they are owed.
- File a Complaint with the Labor Commissioner: If certain rights were violated, an employee can file a complaint with the California Labor Commissioner’s Office.
- Get Legal Support from Employment Lawyers: Consulting an employment lawyer can provide guidance on potential legal actions, such as wrongful termination lawsuits or claims under the state WARN law. Lawyers for Justice, PC (LFJ) has been helping California workers for over 15 years fight back against bully bosses. The employment law firm offers a free consultation and can help workers get what they deserve.
Layoff vs. Termination California
In California, there are important distinctions between layoffs and terminations, each with different legal implications and procedures.
Layoff
A layoff is typically considered a temporary or permanent separation from employment due to business-related reasons such as lack of work, cost-cutting measures, or company restructuring.
Layoffs usually occur due to economic reasons rather than employee performance. Employees who are laid off may be rehired if business conditions improve.
Final Pay: Employees who are laid off must receive their final paycheck, including all earned wages and unused vacation time, on their last day of work.
Termination
Termination refers to the permanent end of an employee’s employment, which can be due to performance issues, misconduct, or other reasons specific to the individual employee.
Terminations often relate to an employee’s job performance, behavior, or violations of company policies. Terminated employees are usually not considered for rehire.
Employees who are terminated must also receive their final paycheck, including all earned wages and unused vacation time, immediately upon termination.
Legal Recourse
For Layoffs, there could be WARN Act Violations. If so, employees can file complaints with the California Labor Commissioner or pursue legal action if the employer fails to comply with notice requirements.
For Terminations, there could be wrongful termination issues. Employees who believe they were terminated for illegal reasons, such as discrimination or retaliation, can file claims with the Equal Employment Opportunity Commission (EEOC) or the California Department of Fair Employment and Housing (DFEH).
Can You Sue For Being Laid Off – FAQ
can you sue for being laid off? California employers are legally obligated to follow certain protocols if they must enforce workforce reductions, lay off a mass number of employees, close an office or facility, or make another kind of significant cut. If your rights were violated due to any of these circumstances, you may have the right to sue your employer. LFJ’s attorneys can help you with your case. And they do not charge an up-front attorney fee.
do companies have to report layoffs? In companies of a certain size, there are California layoff requirements, like the WARN Act, which protects employees, their families, and communities by requiring employers to give a 60-day notice to the affected employees before mass layoffs.
if a business is closing what are employees rights? If you were impacted because your workplace closed, and you did not receive the legally required notice, you may be entitled to up to 60 days of back pay and perhaps the value of lost employee benefits. Each eligible employees’ situations is different.
if i get laid off what are my rights? Typically, laid-off California workers should receive: notice of at least 60 days’ prior the layoff, a final paycheck within 72 hours of your last day of work; and a fulfillment of the terms of the severance package in your employee handbook or contract, if applicable.
when is a warn notice required? Typically, employers must give a WARN notice at least 60 calendar days before any planned plant closure or mass layoff.
can a layoff be wrongful termination? Yes, both layoffs and terminations can be considered wrongful termination if they are executed for for improper reasons.
if a company closes down what happens to the employees? Typically, a final paycheck is paid and in some cases, health care benefits could last for up to 18 months after company closure.
can an employer require 60 days notice? According to the Employment Development Deaprtment of California, a 60-day period is the minimum for advance notice. Employers can give their employees more than 60 days notice.
can a company lay you off and hire someone else? Some exceptions could apply, but usually, a company can lay off and hire new employees as long as it is not for same job or position.
when does the warn act apply? Usually when a company has 75 or more employees.
