AB 2957 California W'A'R'N' Act

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AB 2957 California W.A.R.N. Act

• Legal Presentation
• Ernesto Garcia
• March 12, 2003
• Mgmt 610

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Presentation Overview

• Overview of Worker Adjustment and Retraining
  Notification (WARN) Act of 1988
• AB 2957 California WARN Act
• Federal vs. California WARN Act
• Pros Cons
• Recommendations

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Federal WARN Act of 1988

• The WARN Act provides protection to employees,
  their families, and communities by requiring
  employers to give affected employees written
  notice at least 60 days in advance of any plant
  closing or mass layoff.
• Not all plant closings and mass layoffs are
  subject to the WARN Act

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Recent Cases
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AB 2957 California W.A.R.N. Act

• Business Closures New Notice / New Penalties /
  New UI Tax Liability
• Purpose
• Effective Date
• Coverage
• Exceptions
• Remedies
• Good Faith Investigation
• Consequences

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Federal vs. California WARN Act

• No concept of covered employer under the CA
  WARN Act requiring complicated count of employees
• What Qualifies as mass layoff
• Mass layoff, relocation or termination vs.
  Plant closing or mass layoff
• Employment loss

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Pros Cons

• Pros
• Allows employees to
• Allow employees to seek and obtain alternative
  jobs
• Seek training or retraining to compete in job
  market
• Cons
• If no policies are in place
• Company might be liable for all employees who
  qualify

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Recommendations
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Questions?