352 | 2023 Cal-Peculiarities ©2023 Seyfarth Shaw LLP www.seyfarth.com Issue Federal Law California Law Triggering event Plant closing affecting 50+ employees during a 30day period; mass layoff of 500+ employees during a 30-day period, or layoff of 50+ employees constituting at least one-third of the active workforce; or, if employment losses during a 30-day period fail to meet those thresholds, employment losses for multiple groups of workers that, when aggregated, meet the threshold level during any 90-day period through either a plant closing or mass layoff, unless employment losses during the 90-day period resulted from separate and distinct actions and causes. Layoff within any 30-day period of 50 or more employees, or cessation (or substantial cessation) of all (or substantially all) operations of a covered establishment, or relocation of operations of a covered establishment to a different location 100 or more miles away. Definition of “employment loss” An employment termination other than a discharge for cause, a withdrawal or resignation, or a retirement; a layoff exceeding six months; or a reduction in work hours of a specified amount. For a mass layoff, a separation from a position for lack of funds or lack of work, with no stated minimum length of separation. Exceptions Exceptions include business circumstances “not reasonably foreseeable” and the sale of a going business Generally no exception for business circumstances “not reasonably foreseeable” or for sale of business (except as interpreted under case law), but California has adopted the federal WARN exception for business circumstances “not reasonably foreseeable” relating to the Covid-19 pandemic through the end of the declared State of Emergency. Those to be notified Affected employees, union representative, state displaced worker’s unit, local government Affected employees, EDD, local work force investment board, city elected official, chief county elected official. 13.2 Notices Required 13.2.1 Notification of all continuation, disability extension, and conversion coverage options California employers must notify terminating employees of all continuation, disability extension, and conversion coverage options under any employer-sponsored coverage for which the terminating employee may remain eligible after employment ends.8 13.2.2 Health Insurance Continuation Notices (Cal-COBRA) Employers with 2-19 employees covered by Cal-COBRA must give terminating employees and their qualified beneficiaries timely notice of their rights to continuation coverage under Cal-COBRA. Employees covered by federal COBRA and their qualified beneficiaries must get a COBRA election notice after a qualifying event (including termination of the covered employee) and another election notice (when exhaustion of their federal COBRA approaches) to enroll in Cal-COBRA for an additional period of continued health insurance benefits beyond the federal COBRA period. (See § 8, Employee Benefits.)9
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