Governor Newsom Suspends Cal-WARN Act
On March 17, 2020, Governor Gavin Newsom provided welcome news to employers facing unprecedented financial challenges due to COVID-19, by suspending the Cal-WARN notice requirements. Under Cal-WARN employers must generally provide at least 60 days advance notice of plant or worksite closures or mass layoffs. This portion of the law has been suspended, retroactive to March 4, 2020. Employers must still provide notice of planned closures or layoffs as soon as practicable.
Federal law contains a separate WARN statute requiring 60 days notice. There has been no action yet to suspend the federal statute; however it contains greater flexibility for employers, including an exception for “unforseeable business circumstances.”
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