California WARN Act (Cal-WARN): Complete Guide to Your Rights 2026

California has its own WARN Act (often called "Cal-WARN") that provides stronger protections than the federal WARN Act. If you work in California and experienced a mass layoff or plant closure without proper notice, you may be entitled to significant compensation.

Important Disclaimer: This guide provides general information about California's WARN Act. It is not legal advice. For specific situations, consult with a California employment attorney.

Cal-WARN vs Federal WARN: Key Differences

What is the California WARN Act?

California Labor Code Sections 1400-1408 require covered employers to provide 60 days advance written notice before:

• Mass layoffs (50+ employees within any 30-day period)
• Plant closures (cessation of operations affecting 50+ employees)
• Relocations (moving operations more than 100 miles)

Who is Covered?

Employers:

• Industrial or commercial facilities with 75 or more employees in California
• This is lower than the federal threshold of 100 employees
• Includes full-time and part-time employees

Employees:

• All employees who have worked 6+ months in the preceding 12 months
• Part-time employees are fully protected (unlike federal WARN)
• Employees at any California location (not limited to single site)

Triggering Events in California

Mass Layoff

A layoff of 50 or more employees within any 30-day period, regardless of percentage of workforce. Unlike federal WARN, there's no "33% of workforce" alternative threshold.

Plant Closure

The permanent or temporary cessation of a facility's operations that results in job loss for 50 or more employees.

Relocation

Moving the facility more than 100 miles from its current location.

Important: The 30-Day Lookback Rule

California looks at cumulative layoffs over rolling 30-day periods. If an employer lays off:

• 30 employees on January 1
• 25 employees on January 20

That's 55 employees within 30 days, triggering Cal-WARN even if each layoff alone wouldn't.

California WARN Exceptions

California's exceptions are narrower than federal law:

Physical Calamity Exception

• Natural disasters (earthquake, flood, fire)
• Must be the direct cause of the closure/layoff
• Still must give as much notice as practicable

War or Physical Calamity

• Direct result of a physical disaster
• Very narrow interpretation

What California Does NOT Allow:

• No faltering company exception (unlike federal WARN)
• No unforeseeable business circumstances exception (unlike federal WARN)

This is a major difference. Under federal law, sudden loss of a major contract might excuse reduced notice. Under Cal-WARN, it generally does not.

Notice Requirements

What the Notice Must Include

California WARN notices must include:

• Expected date of mass layoff, relocation, or termination
• Whether layoff is permanent or temporary
• Name and contact information for company official
• Statement of bumping rights (if applicable)
• Employee's right to receive notice

Who Must Receive Notice

60 days before the action:

• Affected employees (individually)
• Employment Development Department (EDD)
• Local Workforce Development Board
• Chief elected official of each city/county government where the layoff will occur

Penalties for Cal-WARN Violations

If your employer violates Cal-WARN, you may be entitled to:

Back Pay

• Pay for each day of violation (up to 60 days)
• At your average regular rate of pay
• Example: If you made $200/day and got no notice: 60 × $200 = $12,000

Benefits Continuation

• Value of employer-paid benefits for the violation period
• Health insurance premiums, retirement contributions, etc.

Civil Penalties

• Up to $500 per day of violation payable to local government
• This is in addition to employee compensation

No Offset for Severance

Unlike federal WARN, California courts have held that voluntary severance payments may not automatically offset Cal-WARN damages. This is a significant advantage for California employees.

Recent California WARN Cases

California has seen numerous high-profile WARN Act cases:

Tech Industry Layoffs

Many tech companies faced Cal-WARN lawsuits during 2023-2024 layoffs when they:

• Laid off employees without 60-day notice
• Claimed "unforeseeable business circumstances" (not valid under Cal-WARN)
• Used rolling layoffs to try to avoid thresholds

Key Takeaway

Courts have been employee-friendly in interpreting Cal-WARN, especially regarding:

• Aggregating layoffs across California locations
• Rejecting exception claims that would work under federal law
• Including remote workers based in California

What to Do If Cal-WARN Was Violated

Step 1: Document Everything

• Your termination date
• Date you received notice (if any)
• Number of employees at your location and company-wide in California
• Names of other affected employees
• Any communications about the layoff

Step 2: Calculate the Violation

• Count days from actual notice to termination
• Subtract from 60 to find violation days
• Calculate your daily pay rate

Step 3: Find Other Affected Employees

• Cal-WARN cases are often class actions
• Connect with former colleagues
• Check if a lawsuit has already been filed

Step 4: Consult a California Employment Attorney

• Many handle these cases on contingency (no upfront cost)
• Free consultations are common
• Class actions can be powerful

Step 5: Act Quickly

• California has a 3-year statute of limitations
• But evidence disappears and memories fade
• Don't delay seeking legal advice

California WARN and Remote Workers

A significant issue in modern layoffs: Where do remote workers count?

California courts have generally held that remote workers based in California count toward California WARN thresholds, even if:

• The company is headquartered elsewhere
• They report to managers in other states
• They work from home

This has expanded Cal-WARN coverage significantly for tech and other companies with distributed workforces.

Filing for Unemployment While Pursuing WARN Claim

Yes, you should file for unemployment immediately. A WARN claim does not affect your unemployment eligibility. The back pay from a WARN violation is:

• Separate from unemployment benefits
• May need to be reported as income when received
• Does not disqualify you from UI

Relationship to Federal WARN

California employers must comply with both laws. Because Cal-WARN is stricter in most ways:

• Lower threshold (75 vs 100 employees)
• State-wide counting (not just single site)
• Fewer exceptions allowed
• Part-time workers fully protected

If an employer complies with Cal-WARN, they'll typically also comply with federal WARN. But not vice versa.

Common Questions

Does Cal-WARN apply to small company layoffs?

If the company has fewer than 75 employees in California, Cal-WARN doesn't apply. Federal WARN may still apply if there are 100+ employees nationwide.

What if my company went bankrupt?

Bankruptcy does not eliminate Cal-WARN liability. Employees have priority claims in bankruptcy proceedings.

Can I waive my Cal-WARN rights in a severance agreement?

This is legally complex. Courts scrutinize waivers carefully. Always have an attorney review before signing any release.

What if I was a contractor, not an employee?

Cal-WARN protects employees. If you were misclassified as a contractor but were actually an employee, you may still be covered.

Action Checklist

If you believe Cal-WARN was violated:

• [ ] Document your termination date and any notice received
• [ ] Count California employees at your company (not just your office)
• [ ] Gather pay stubs showing your regular rate
• [ ] Connect with other affected employees
• [ ] Research if a class action has been filed
• [ ] Consult a California employment attorney (free consultation)
• [ ] File for unemployment immediately
• [ ] Don't sign severance releases without legal review

Related Resources

• Federal WARN Act Guide
• State WARN Laws Comparison
• New York WARN Act Guide
• Severance Negotiation Guide
• First Week After Layoff

Key Takeaways

1. Cal-WARN is stricter than federal WARN - lower thresholds, fewer exceptions
2. 75+ employees in California triggers coverage (vs 100 federal)
3. 50+ affected employees statewide (not just one location)
4. No unforeseeable business circumstances exception in California
5. Part-time workers are fully protected under Cal-WARN
6. Severance may not offset damages in California
7. Remote workers in California count toward California thresholds
8. 3-year statute of limitations - but don't delay
9. Many attorneys work on contingency - free consultations available
10. File for unemployment AND pursue WARN claim - they're separate

Remember: This guide is informational only. California employment law is complex. Consult with a qualified California employment attorney for advice specific to your situation.