Legislative Update: New updates to CA Worker Adjustment and Retraining Act (SB 617)
Wrapping up the legislative enactments of 2025, California Governor Gavin Newsom has signed Senate Bill 617, amending the California Worker Adjustment and Retraining Act (CalWARN), codified at Labor Code section 1401.
What is CalWARN?
Cal-WARN is California's state-level version of the federal Worker Adjustment and Retraining Notification (WARN) Act. Under the CalWARN Act, notices are required for mass layoffs of 50 or more employees within a 30-day period, relocations of at least 100 miles affecting any amount of employees, and closures. For purposes of the WARN Act, “employee” is defined as a person employed by an employer for at least 6 months of the 12 months preceding the date on which notice is required. 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. Additionally an employer is not required to comply with the notice requirement if the employer was actively seeking capital or business, at the time the notice would have been required.
The Cal-WARN Act provides broader protections than the federal WARN Act, which applies to employers with 100 or more employees.
Failure to comply can result in back pay and benefits for affected employees.
What does the new law do?
SB 617 expands the information employers are required to include in a CalWARN Act notice and requires employers that choose to coordinate services through a local workforce development board (LWDB) or another entity to do so within 30 days of the notice.
In California, LWDBs play an important role in connecting individuals with job search assistance, career counseling, and training opportunities. Among other mandates, LWDBs administer the Dislocated Worker Program, which is part of the federal WIOA and is designed to help displaced workers get back to work as quickly as possible and overcome barriers to employment. A key part of the Dislocated Worker Program is rapid response services, which are designed to respond to layoffs and plant closings by quickly coordinating tailored services and providing immediate, on-site aid to companies and their affected workers. These services are carried out by state and local workforce development agencies in partnership with the America's Job Centers of California network.
Specifically, this bill:
· Requires an employer to include in a CalWARN Act notice whether the employer plans to coordinate services through the LWDB, through a different entity, or not at all.
· Requires, regardless of whether an employer chooses to coordinate services through the LWDB or another entity, the employer to include in a CalWARN Act notice a functioning email and telephone number of the LWDB and the following description of the rapid response activities of the LWDB: “Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career.”
· Requires, if an employer chooses to coordinate services with the LWDB or another entity, the employer to arrange services within 30 days from the date of the notice.
· Requires an employer to include in a CalWARN Act notice a description of the statewide food assistance program CalFresh, the CalFresh benefits helpline, and a link to the CalFresh internet website.
· Requires an employer to include in a CalWARN Act notice a functioning email and telephone number of the employer for contact.
The Employment Development Department’s website has a handy FAQ on the CalWARN notification requirements, which employers may want to review.
The law takes effect January 1, 2026.
If you have questions about any new 2025 legislation that may impact your business, please give Rosasco Law Group a call. Our firm is fully equipped to handle your workplace’s compliance with existing and new laws to ensure a smooth business operation for you and your employees.
