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Layoffs are never easy—whether you’re the employer making tough decisions or the employee facing uncertainty. In California, specific laws exist to protect workers and ensure that companies handle layoffs responsibly.
These regulations, known as Layoff Laws in California, cover notice requirements, discrimination protections, benefits, and employer responsibilities.
But what do these laws actually mean for you? And how can employees protect their rights while employers stay compliant? Let’s dive deeper into this important subject and break it down in simple, practical terms with this MJB Law Group guide.
California is home to some of the largest companies in the world—tech giants, entertainment studios, and massive retailers. When layoffs happen here, they often affect thousands of people at once.
Without clear laws, employees could be blindsided, left without notice, income, or support. That’s why California’s layoff laws are designed to emphasize fairness, transparency, and worker protections.
It’s important to distinguish between different employment separations:
These differences matter because the legal requirements and employee rights vary depending on which situation applies.
The Worker Adjustment and Retraining Notification (WARN) Act is central to California’s layoff protections.
It requires certain employers to give employees 60 days’ advance written notice before a mass layoff, plant closure, or large-scale workforce reduction. The purpose is to give employees time to adjust, find new jobs, and secure financial stability.
| Aspect | Federal WARN Act | California WARN Act |
| Applies To | Employers with 100+ employees | Employers with 75+ employees |
| Notice Requirement | 60 days | 60 days |
| Coverage | Mass layoffs, plant closures | Broader—covers more employers and situations |
California’s WARN Act offers broader protection, covering more businesses and requiring compliance in more circumstances.
The California WARN Act applies to:
Employers must give at least 60 days of written notice before the effective date of a layoff or closure. This notice must go to:
There are some exceptions where full notice may not be required, including:
Even in these cases, employers must still provide notice as soon as possible.
Employees are entitled to 60 days’ advance notice when the WARN Act applies. If the employer fails to provide this, they can be held financially responsible for wages and benefits during the notice period.
Employees keep access to health insurance and other benefits during the 60-day notice window. Employers must maintain these benefits as part of their legal obligations.
While California law does not mandate severance pay, many employers offer it voluntarily or as part of company policy. If it is promised in writing—such as in an employment contract or company handbook—the employer must honor it.
Employers must provide written notice that includes details such as the reason for the layoff, the expected date, and information about benefits or services available to employees.
In addition to informing employees, employers must notify the EDD and local officials to help coordinate support services like retraining and unemployment assistance.
Layoffs must be based on legitimate business needs, not biased decisions. Employers cannot target protected groups based on age, gender, disability, pregnancy, or other protected categories.
The Fair Employment and Housing Act (FEHA) prevents discrimination in employment decisions, including layoffs. Employers must show that layoffs are based on neutral, business-related reasons.
Workers over 40 have additional protections under both California law and the federal Age Discrimination in Employment Act (ADEA). Employers must be careful that their layoff decisions don’t disproportionately impact older workers.
Employers cannot use layoffs to disguise discriminatory motives against employees who are pregnant or disabled. Such actions can lead to legal challenges.
Most laid-off employees qualify for unemployment insurance benefits through the EDD, provided they meet the work and wage history requirements.
Laid-off employees can continue their health insurance coverage under federal COBRA or California’s Cal-COBRA laws, although they may need to pay the full premium.
California law requires:
Employers planning mass layoffs or closures must comply strictly with WARN requirements. Failing to do so can result in lawsuits and financial penalties.
Employees must be given written notice, continued benefits, and support through local agencies to help them transition to new jobs.
Recent tech sector layoffs have triggered lawsuits when companies failed to comply with WARN notice rules, reinforcing the importance of compliance.
No, severance is not legally required. However, many employers offer it to reduce the risk of lawsuits or to maintain goodwill.
A severance package may include:
Employees should seek legal advice before signing a severance agreement. These agreements often contain waivers of legal claims that employees might otherwise be able to pursue.
Government layoffs must follow civil service rules, often requiring seniority-based decisions and protections for long-term employees.
Unionized workers may have additional layoff protections through collective bargaining agreements, including guaranteed severance or rehire rights.
While layoffs are business-driven, wrongful termination occurs when an employee is fired for illegal reasons, such as discrimination or retaliation.
Employees can bring claims if they:
Remedies may include back pay, reinstatement, compensation for lost benefits, and coverage of attorney’s fees.
Employers should consult legal counsel with MJB Law Group, document their business reasons, and use fair, objective criteria for layoff decisions.
Clear, honest communication helps build trust and reduces the chance of lawsuits. Employers should explain the reasons for layoffs in plain language.
Employers must comply with both state and federal WARN Acts, as well as anti-discrimination and wage laws. Failure to do so can lead to serious legal and financial consequences.
At MJB Law Group, we specialize in protecting employees who have faced unlawful layoffs or wrongful termination. Our office is located at 1442 Irvine Boulevard, Suite 201, Tustin, CA 92780, and we are open Monday through Friday, 8:30 AM to 5:30 PM.
We are a boutique litigation law firm focused on employment and personal injury law. Our attorneys fight corporations and insurance companies to secure justice for individuals who have had their rights violated. We operate on a contingency fee basis, which means clients pay no upfront costs—we only get paid if we win.
Choosing MJB Law Group means choosing a dedicated team that understands both the financial and emotional toll layoffs can cause. We will stand by your side, fight for your rights, and help you achieve the justice you deserve.
Both employees and employers benefit from legal advice during layoffs. Employees can protect their rights and secure compensation, while employers can avoid lawsuits by ensuring compliance.
In California’s complex legal environment, professional legal support from MJB Law Group is often the difference between a smooth transition and a costly battle.
Employers must provide at least 60 days’ written notice under the California WARN Act.
Generally, the WARN Act applies to businesses with 75 or more employees, but smaller businesses still must follow general labor and wage laws.
Severance is not legally required, but many employers offer it. If promised in company policy, it must be provided.
You may be entitled to back pay, benefits, and legal damages. Consulting an attorney is strongly recommended.
