California Layoffs: Know Your Rights and What to Do Next

April 25, 2025
A woman is sitting next to a yellow box filled with her belongings after getting laid off

What California Law is Related to Layoffs?

Losing your job can be a daunting experience, especially amid California's evolving job market. Recent layoffs across various sectors, including biotech and retail, have left many employees seeking clarity on their rights and what to do next. California workers have rights outlined under the California WARN Act when it comes to layoffs and workforce reductions. 


The California Worker Adjustment and Retraining Notification (WARN) Act requires employers with 75 or more employees to provide at least 60-days’ advance notice before conducting mass layoffs, relocations, or plant closures. Failure to comply can result in penalties, including back-pay and the value of lost benefits for each affected employee. 


Steps to Take After Being Laid Off 

Review Your Final Paycheck and Benefits 

Under California law, laid-off employees must receive their final paycheck, including any unused, accrued vacation pay, on their last day of work. While employers typically do not have to pay out unused sick leave unless a policy or contract says otherwise, they must inform you about your options for continuing health insurance coverage, such as COBRA or Cal-COBRA, if applicable. 


Evaluate Severance Agreements Carefully 

Severance packages are not required by law, but some employers offer them voluntarily. These agreements often include financial compensation in exchange for your agreement to waive certain rights, such as the ability to file a lawsuit against the employer. Before signing anything, it's wise to consult with an employment attorney to ensure the terms are fair and that you're not forfeiting your rights to pursue any valid legal claims. 


Apply for Unemployment Benefits Promptly 

You may be eligible for unemployment benefits through California's Employment Development Department (EDD). The EDD offers temporary financial assistance while you search for new employment. Ensure you meet the eligibility criteria and apply as soon as possible to avoid delays in receiving unemployment payments. 

 

Consider Potential Legal Claims 

Even though California is an at-will employment state, employers cannot terminate employees for illegal reasons, such as discrimination based on age, race, gender, retaliation for whistleblowing, or taking protected leave. If you suspect your layoff was unlawful, document any relevant incidents and consult with an employment attorney to explore potential claims. 


Stay Informed About the Job Market 

California’s job market is shifting, with mass layoffs reported in industries like biotech and retail. Staying informed about job market trends can help you identify opportunities in growing sectors and tailor your job search effectively. 


Seek Legal Guidance 

Navigating a layoff can be overwhelming. An experienced employment attorney can provide clarity on your rights, identify potential claims, and provide personalized advice during this transition. 


Being laid off is never easy but understanding your rights and taking proactive steps can help you navigate this period effectively. Stay informed, seek support, and remember that legal resources are available to assist you. 


If you've recently been laid off, don’t navigate this alone. Contact Lawyers for Employee and Consumer Rights today for a free consultation with an experienced employment lawyer. We'll review your case and guide you through your legal options. 




Frequently Asked Questions

1. What is the California WARN Act and how does it protect workers?
The California Worker Adjustment and Retraining Notification (WARN) Act requires employers with 75 or more employees to provide at least 60 days’ notice before mass layoffs, relocations, or plant closures. Failure to comply can result in penalties, including back pay and lost benefits for affected employees.


2. When must I receive my final paycheck after a layoff?
Under California law, laid-off employees must receive their final paycheck, including any unused accrued vacation pay, on their last day of work. Employers must also inform you about options for continuing health insurance coverage, such as COBRA or Cal-COBRA.


3. Are severance packages required by law in California?
No. Severance packages are voluntary. If offered, they usually require employees to waive certain rights, like filing a lawsuit. It’s important to review any severance agreement with an employment attorney before signing.


4. Am I eligible for unemployment benefits after a layoff under California law?
Yes. Most laid-off employees can apply for temporary financial assistance through California’s Employment Development Department (EDD), provided they meet eligibility criteria. Applying promptly helps avoid delays in receiving benefits.


5. Can I contest a layoff if I believe it was illegal?
Yes. Even though California is an at-will employment state, layoffs cannot be based on illegal reasons, such as discrimination, retaliation, or violation of protected leave rights. Document incidents and consult an employment attorney to explore potential legal claims.


6. How can I protect my rights during a layoff in California?
Document all communications and relevant incidents, review final pay and benefits carefully, consult an employment attorney about severance or potential claims, and apply promptly for unemployment benefits.


7. What should I do after being laid off to find a new job?
Stay informed about California’s job market trends, update your resume and skills, consider industries that are growing, and leverage networking and job search resources. Legal guidance can also help ensure you protect your rights during your transition.

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