Being laid off from a job can be enormously stressful and confusing. Most people will face being laid off at least once in their career. According to USA Facts, there were about 1.8 million layoffs in February 2025 alone. Whether you are being let go on your own or are caught up in a mass layoff at your place of employment, there are certain rights protecting you in California.
Advanced Notice May Be Required
In certain circumstances, your employer may be required to give advanced notice before any type of layoff. This is established under the California WARN Act. Employers may need to give 60-day notice in the following circumstances.
- The statute applies to employers that have 75 or more employees.
- The statute applies when 50 or more employees are being laid off in a 30-day period.
If an employer fails to give their workers notice, those workers may be entitled to backpay and benefits. See, for example, Cal. Labor Code §§ 1400–1408. There are certain exemptions to the WARN Act. This includes unforeseeable business circumstances, natural disasters, and companies in financial turmoil that are seeking funding.
Final Pay and Benefits After a Layoff
California law helps ensure that workers receive all the compensation that they are entitled to at the time of the layoff. What follows are a few things to keep in mind when you are receiving your final paycheck.
- Pursuant to Cal. Labor Code § 201, employers must provide their workers with all wages owed at the time of termination. This includes compensation for accrued vacation.
- Pursuant to Cal. Labor Code § 203, workers may be entitled to financial compensation if their final wages are late. This will typically be equal to a day’s pay for each day that goes by, up to 30 days.
- In the event of a layoff, employers are still required to offer their employees a continuation of health benefits through COBRA or Cal-COBRA. Affected employees may still need to pay the full cost of their premium.
Despite these obligations under the law, violations by employers remain quite common. If your employer is not following the law with respect to issuing a final paycheck or continuing health benefits, it is a good time to speak to a skilled employment lawyer.
When Layoffs May Be Illegal
California is an at-will employment state. Employers can let workers go at virtually any time and for almost any reason. However, they are not allowed to layoff workers for reasons that would be illegal.
- Discrimination: Employers cannot layoff workers for reasons that would be discriminatory. Certain characteristics are protected under the California Fair Employment and Housing Act (FEHA). This includes “age (40 and over), ancestry, color, creed, denial of family and medical care leave, disability (mental and physical) including HIV and AIDS, marital status, medical condition (cancer and genetic characteristics), national origin, race, religion, sex, and sexual orientation.”
- Retaliation: Workers have a right to perform their job duties in areas and conditions that are reasonably safe. Employers cannot retaliate against workers for whistleblowing by laying them off. They also cannot layoff workers for exercising their right to family and medical leave.
When an employer engages in illegal conduct by laying off a worker due to discrimination or retaliation, the affected worker may have legal recourse through a civil claim. Their employer may also be subjected to penalties as a result of their misconduct.
Getting Legal Help After a Layoff
It can be hard to know where to begin if you’ve gone through a layoff. The situation can be substantially worse if you’ve been let go from your employer due to discrimination or retaliation. Workers must understand that they do have legal rights that must be upheld, even if their layoff was completely legal.
If you’ve been laid off from your job and are wondering what to do next, our legal team is here to assist you. The wrongful termination lawyers at The Labor Champ can let you know what your legal options are and take steps to help protect your rights. Whether you just have legal questions or need a free, independent investigation into any incident, we may be able to assist you. You can contact our office anytime at 949-727-9300.
