California WARN Act

Social media giant Twitter is facing legal action over allegedly laying off more than 950 workers without providing proper notice, as required under the federal and California WARN Act. WARN stands for Worker Adjustment and Retraining Notification Act.

Per the California Department of Industrial Relations, relocations, terminations, and mass layoffs in this state are regulated in Labor Code sections 1400-1408. Generally speaking, most large employers aren’t allowed to order mass layoffs, relocations, or terminations unless the employer provides written notice to employees 60 days prior to the order taking effect. Employers are also required to notify the state’s Employment Development Department. As our Los Angeles employment lawyers can explain, failure to do this can trigger recompense for ex-employees for back pay, the value of any benefits workers may have been entitled to during that time. Companies can obtain an exemption from the law if certain conditions under Labor Code section 1402.5 are met, but that doesn’t appear to have been the case here with Twitter.

Musk’s Rocky Start at Twitter Helm

As it’s been widely-reported, Twitter was recently purchased by Tesla CEO Elon Musk. The acquisition deal had been in the works for months, but was finally sealed Oct. 28th for a $44 billion price tag. At the time, he promised to keep employee benefits and compensation the same.

News soon began to spread that Twitter would begin mass layoffs the first week of November. In an effort to eliminate costs, Twitter axed 50 percent of its workforce, reducing staff by 3,700 positions.

The complaint, filed in the U.S. District Court in the Northern District of California, alleges the company initiated layoffs starting Nov. 1st, with several employees saying they were in the first wave of mass layoffs, despite not receiving proper written notice in accordance with state and federal employment law.

Of note: It’s not the first time Musk has been accused of violating WARN laws. Continue Reading ›

Roughly 70 workers at a private, non-profit museum in Los Angeles is facing a possible class action lawsuit for allegedly violating California’s WARN Act, which compels employers to offer at least a 60-day advance warning both to employees and local government agencies if there will be a plant closure, major relocation or mass layoff. As our Los Angeles labor lawyers can explain, the Worker Adjustment and Retraining Notification Act, found in California Labor Code 1400-1408LC, entitles workers denied this notification to receive back pay and benefits for the period of violation (the period by which their advance notice fell short of those 60 days).

While most of the Golden State’s wrongful termination laws pertain to the rights of individual employees, the WARN Act protects workers fired/laid off in connection with a mass layoff (50 or more workers laid off within 30 days of each other), a company closure or relocation of substantial business activities to a physical location more than 100 miles away. The law only applies to companies that have employed 75 or more workers in the year preceding, and companies are exempted if the closure/layoffs/relocation is due to some act of war or physical calamity. It’s similar to the U.S. WARN Act, 29 USC;2104(a), but extends greater worker protections.

This kind of advance notice is key for workers and their families, who will need time to transition and adjust to employment loss and seek alternative income sources and/or job training while still providing for their family in the immediate future. The reason local government is included in this notification is that the California Employment Development Department has an established Rapid Response Team to aid both employers and employees in the midst of a mass layoff or company closing. They offer information about dislocated worker services available, unemployment insurance options, income support and assistance with job training and job searches. Continue Reading ›

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