Your Rights in a California Layoff: WARN Notice, Final Pay and Severance

Legal Guides · Updated October 2026

What are your rights if you are laid off in California? Layoffs are legal, but California law requires advance notice for many large layoffs, immediate payment of final wages, and fair treatment in who is selected. Here is what to know before you sign anything.

On this page: WARN notice · Final pay · Severance · Illegal layoffs · Next steps · FAQ

Advance Notice: The California WARN Act

California’s WARN Act (Cal-WARN) requires covered employers to give 60 days’ written notice before certain layoffs, relocations and closures. It is broader than the federal WARN Act.

• Who is covered: industrial or commercial establishments that employed 75 or more people, including part-time employees, in the prior 12 months.
• What triggers notice: a mass layoff of 50 or more employees within 30 days, a relocation of 100 miles or more, or a termination or shutdown of the establishment.
• Who receives notice: affected employees, the state, the local workforce development board and local government officials.

Beginning January 1, 2026, Cal-WARN notices must also tell employees whether the employer will coordinate services, such as job training and placement assistance, through the local workforce development board or another provider, and must include the board’s contact information and a description of its services.

If notice was not given

An employer that violates Cal-WARN can owe each affected employee back pay and the value of lost benefits for each day of the violation, up to 60 days. The federal WARN Act, which applies to employers with 100 or more employees, has similar protections.

Your Final Paycheck Is Due on Your Last Day

Being laid off is treated the same as being fired for final pay purposes. All wages, including accrued, unused vacation or PTO, are due immediately on your last day. Late payment can entitle you to waiting time penalties of up to 30 days of wages. See California Final Paycheck Law.

Severance Is Usually Optional, but Releases Are Not

California does not require severance pay unless a contract or company policy promises it. When severance is offered, it almost always comes with a release of legal claims. In a group layoff, employees 40 and older have special federal protections, including at least 45 days to consider the agreement, 7 days to revoke it, and information about the ages and job titles of who was and was not selected. Read the agreement carefully, or have it reviewed. See severance agreement review.

When a “Layoff” Is Really Discrimination or Retaliation

Layoffs are lawful, but an employer cannot use a reduction in force to remove employees for illegal reasons. Warning signs include:

• A layoff that falls mostly on older employees, employees on medical or pregnancy leave, or employees who recently complained
• Your position is “eliminated” but someone else is soon doing the same job under a new title
• Selection criteria that were vague, changed, or applied inconsistently
• Timing that closely follows a protected complaint or request for leave or accommodation

In those situations, you may have claims for age discrimination, other discrimination, retaliation or wrongful termination.

Unemployment, Health Coverage and Next Steps

• Apply for unemployment benefits with the Employment Development Department (EDD) right away. Being laid off generally does not disqualify you.
• Health insurance: you may be able to continue your employer’s coverage under COBRA or Cal-COBRA, or enroll through Covered California.
• Non-competes: California law generally makes non-compete agreements void, so in most cases you are free to work for a competitor.
• Request your records: you have the right to request your personnel file and payroll records.
• Watch the deadlines: see How Long Do I Have to Sue My Employer?

Frequently Asked Questions

How much notice is required before a layoff in California?

Under the California WARN Act, covered employers must give 60 days’ written notice before a mass layoff of 50 or more employees, a relocation of 100 miles or more, or a closure.

Does my employer have to pay severance if I am laid off?

Not unless a contract or company policy requires it. If severance is offered, it is usually in exchange for a release of claims.

When is my final paycheck due after a layoff?

Immediately, on your last day of work, including any accrued, unused vacation or PTO.

Can I collect unemployment if I was laid off?

Generally yes. Being laid off through no fault of your own usually qualifies you for unemployment benefits through the EDD.

What if the layoff targeted older workers?

A layoff that disproportionately affects workers 40 and older can be evidence of age discrimination. A lawyer can evaluate how employees were selected.

This guide provides general information about California law as of October 2026. It is not legal advice, and reading it does not create an attorney-client relationship. Every situation depends on its facts, so speak with a lawyer about yours.