On March 17, 2020, Governor Gavin Newsom issued an Executive Order that provides some relief during the time that California is in a state of emergency due to the COVID-19 coronavirus outbreak. The Order clarifies employers’ responsibilities, lifting some of the uncertainty about conducting layoffs legally. California Labor Code sections 1400 to 1408 – known as “Cal-WARN,” the state version of the federal Worker Adjustment and Retraining Notification Act – requires employers to provide a 60 day notice period for Mass Layoffs. This law provided little flexibility to help employers who have had to suddenly and quickly lay off and furlough much of their workforces.
Under Executive Order N-31-20, the requirement for covered employers to provide 60 days’ notice before a mass layoff, relocation, or facility closing is suspended if the event is caused by COVID-19-related business circumstances that were not reasonably foreseeable as of the time that notice would have been required. Employers are still required to give written WARN notices as soon as is practicable, and the notices must briefly state the basis for reducing the notification period. Additionally, any WARN notices provided after March 17, 2020, must state: “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.”