California Suspends 60-Day Notice Requirement for Layoffs Related to COVID-19

On March 17, 2020, Governor Newsom signed Executive Order N-31-20 (“Order”), which temporarily suspends the requirement that employers give 60 days’ notice prior to a “mass layoff, relocation, or termination.” The Order addresses the notice requirements of California’s Worker Adjustment and Retraining Notification Act (“Cal WARN”) as set forth in Labor Code sections 1401(a), 1402, and 1403.

In order to be excused from notice requirements under the Governor’s Executive Order, layoffs must be because of a “COVID-19 related business circumstance that was not reasonably foreseeable as of the time that the notice would have been required” and must comply with the following terms of the Order:

  • Employers must provide notices to all of the parties specified in Labor Code section 1401 (a), which includes employees of the affected covered establishment, the state Employment Development Department, the local workforce investment board, and the chief elected officials of the business’ local city and county governments. The employer must still provide all of the information in the notice that is required under Cal WARN, as well as the federal WARN Act.
  • This notice must be given as soon as practicable and provide a “brief statement of the basis for reducing the notice period.”
  • Any written notice of layoff given after March 17, 2020 must contain the following language: “If you have lost your job or been laid off temporarily you may be eligible for unemployment insurance (UI). More information on UI and other resources available for workers is available at labor.ca.gov/coronavirus2019.”

This Order applies to any layoffs that have or will occur as a result of COVID-19 related circumstances from March 4, 2020 through “the end of this emergency.” The Order also calls on the Labor and Workforce Development Agency to provide guidance on the implementation of this Order by March 23, 2020. We will continue to provide updates as information about the implementation of this Order develops.

It is important to note that this Order applies only to Cal WARN provisions. Employers should consult with their legal counsel to ensure that their actions are in compliance with the federal WARN Act. (29 U.S.C. § 2101 et seq.)

Questions

If you have any questions regarding this Legal Alert, please contact the following attorneys from our office, or the attorney with whom you typically consult.

Bruce Scheidt
bscheidt@kmtg.com | 916.321.4502