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Can I terminate employees without violating employment laws in California? What are the requirements?

To terminate employees in California, employers must comply with the requirements set forth in the California Labor Code. Failure to comply with these requirements may result in penalties and legal action against the employer.

Requirements for Termination

Under Section 1401 of the California Labor Code, an employer may not order a mass layoff, relocation, or termination at a covered establishment unless, 60 days before the order takes effect, the employer gives written notice of the order to the following:

  1. The employees of the covered establishment affected by the order.
  2. The Employment Development Department, the local workforce investment board, and the chief elected official of each city and county government within which the termination, relocation, or mass layoff occurs.

An employer required to give notice of any mass layoff, relocation, or termination under this chapter shall include in its notice the elements required by the federal Worker Adjustment and Retraining Notification Act (29 U.S.C. Sec. 2101 et seq.) [1.1].

Requirements for Covered Establishment

A “covered establishment” means any industrial or commercial facility or part thereof that employs, or has employed within the preceding 12 months, 75 or more persons [1.5].

Penalties for Violation

An employer who fails to give notice as required by paragraph (2) of subdivision (a) of Section 1401 is subject to a civil penalty of not more than five hundred dollars ($500) for each day of the employer’s violation. The employer is not subject to a civil penalty under this section, however, if the employer pays to all applicable employees the amounts for which the employer is liable under Section 1402 within three weeks from the date the employer orders the mass layoff, relocation, or termination [1.3].

If an employer violates the requirements set forth in the California Labor Code, the Labor Commissioner may enforce the notice requirements, including investigating an alleged violation and ordering appropriate temporary relief to mitigate the violation pending the completion of a full investigation or hearing, through the procedures set forth in Section 98.3 or 1197.1, including by issuance of a citation against an employer who violates this chapter. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the commissioner shall be the same as those set forth in Section 1197.1, as appropriate [1.8].

If the court determines that an employer conducted a reasonable investigation in good faith, and had reasonable grounds to believe that its conduct was not a violation of this chapter, the court may reduce the amount of any penalty imposed against the employer under this chapter [1.1].

Exceptions

Notwithstanding the requirements of subdivision (a) of Section 1401, an employer is not required to provide notice if a mass layoff, relocation, or termination is necessitated by a physical calamity or act of war [1.1].

Conclusion

Employers in California must comply with the requirements set forth in the California Labor Code when terminating employees. Failure to comply with these requirements may result in penalties and legal action against the employer.

Source(s):
Jurisdiction

California