AB 2530 California Assembly · 2025-2026 Regular Session

Employment: Cal/WARN Act: plant closings and mass layoffs.

Summary

Existing law, the California Worker Adjustment and Retraining Act (Cal/WARN Act) , among other things, prohibits an employer from ordering 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 employees affected by the order and to the Employment Development Department and certain local officials. Existing law requires the notice to contain specified information and makes an employer who fails to give the required notice liable to each employee entitled to notice who lost their employment for back pay and the value of the cost of any benefits to which the employee would have been entitled had their employment not been lost, as provided. Existing law also makes an employer subject to civil penalties, as provided, for each day of the employer's violation. Existing law defines "employer" for these purposes to mean any person, as defined, who directly or indirectly owns and operates a covered establishment and defines "covered establishment" to mean any industrial or commercial facility or part thereof that employs, or has employed within the preceding 12 months, 75 or more persons. This bill would add "public agency" to the definitions of employer and covered establishment, thereby making the Cal/WARN Act applicable to public agencies. The bill would, in the case of a sale of part or all of an employer's business, make the seller responsible for providing the notice for any mass layoff, relocation, or termination up to and including the effective date of the sale, and make the purchaser responsible for providing the notice following the effective date of the sale. The bill would make other technical and conforming changes.

Issues: ✓ Labor & Employment

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 20, 2026 Last action May 14, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

03/19/26 - Amended Assembly → 04/13/26 - Amended Assembly · 8 edits · Apr 13, 2026

MODERATE

AB 2530 was significantly restructured between the March 19 and April 13 amendments. The bill dropped its Penal Code amendment (Section 701, relating to threatened offenses) entirely, narrowing it to a single employment topic. Most importantly, the Cal/WARN Act is now explicitly extended to public agencies (state agencies, counties, cities, districts), and a new Section 1401 creates a general 60-day notice requirement for mass layoffs, relocations, and terminations at covered establishments, including public agencies. The bill also adds requirements that notices include CalFresh information and workforce development board coordination details.

Scope change

The bill was narrowed by removing the Penal Code amendment but substantially expanded in its employment provisions: the Cal/WARN Act now applies to public agencies (state, county, city, and district level), and a new general notice requirement (Section 1401) covers mass layoffs, relocations, and terminations at all covered establishments including public agencies, not just call centers.

SCOPE

The entire Penal Code amendment (Section 701, relating to information of threatened offense) was removed from the bill, narrowing it to a single employment topic.

Public agencies are now explicitly covered under the Cal/WARN Act. The definitions of 'covered establishment' and 'employer' in Section 1400.5 now include 'public agency,' defined as any state agency, department, board, or commission, any county, city and county, city, regional agency, district, or other political subdivision.

REQUIREMENT

A new Section 1401 requires employers (including public agencies) to give 60 days written notice before ordering a mass layoff, relocation, or termination at a covered establishment. Notice must go to affected employees, the Employment Development Department, the local workforce development board, and the chief elected official of each affected city and county.

Notices under new Section 1401 must include: elements required by the federal WARN Act, whether the employer plans to coordinate services with the local workforce development board, a description of CalFresh (the statewide food assistance program) with helpline and website link, and a functioning email and phone number for the employer.

New Section 1401(f) exempts employers from notice if a mass layoff, relocation, or termination is necessitated by a physical calamity or act of war.

New Section 1401(g) clarifies that in the case of a sale of part or all of an employer's business, the seller is responsible for notice up to and including the effective date of the sale, and the purchaser is responsible after that date.

DEFINITION

Section 1400.5 was restructured to separate general Cal/WARN definitions (covered establishment, employee, employer, layoff, mass layoff, public agency, relocation, termination) from the call center-specific provisions, which remain in a separate article with their own definitions that do not include public agencies.

FISCAL

The fiscal committee designation changed from 'no' to 'yes,' indicating the bill now requires fiscal committee review, likely due to the new obligations imposed on public agencies.

02/20/26 - Introduced → 03/19/26 - Amended Assembly · 8 edits · Mar 19, 2026

MODERATE

AB 2530 was introduced as a minor technical fix to Penal Code Section 701 (changing 'laid' to 'brought'). The amended version adds an entirely new Article 4 to the Labor Code establishing a comprehensive Cal/WARN Act framework requiring employers with 100 or more employees to give 60 days advance written notice before ordering a plant closing or mass layoff, with backpay liability and civil penalties for noncompliance. This transforms the bill from a trivial housekeeping amendment into a major new employment protection law.

SCOPE

Adds entirely new Article 4 (Sections 1415-1415.8) to the Labor Code establishing plant closing and mass layoff notice requirements under the Cal/WARN Act, which did not exist in the introduced version.

Provides exceptions for faltering companies seeking capital, unforeseeable business circumstances, natural disasters (flood, earthquake, drought), temporary facilities, project-based employment under specific wage orders, and strikes or lockouts. Includes an anti-evasion rule treating staggered layoffs within 90 days as a single event unless the employer proves separate causes.

ELIGIBILITY

Applies to employers with 100 or more employees (excluding part-time), or 100 or more employees working at least 4,000 hours per week in aggregate. Part-time employees are defined as those averaging fewer than 20 hours per week or employed fewer than 6 of the preceding 12 months.

REQUIREMENT

Requires employers to serve written notice 60 days before ordering a plant closing (shutdown resulting in employment loss for 50+ employees at a single site) or mass layoff (33% of workforce totaling 50+ employees, or 500+ employees, during any 30-day period). Notice must go to affected employees or their representative, the Employment Development Department, and the chief elected official of the local government.

ENFORCEMENT

Noncompliant employers are liable for backpay at the higher of average regular rate over last three years or final regular rate, plus employee benefit plan costs including medical expenses, for up to 60 days (capped at half the employee's total employment duration). A civil penalty of up to $500 per day applies for failure to notify local government, waivable if backpay is paid within three weeks. Courts may reduce liability for good faith violations.

TECHNICAL

Amends and renumbers Labor Code Section 1400.5 to consolidate definitions for the entire chapter, and repeals Section 1409 which previously contained call center-specific definitions now absorbed into the broader framework.

FISCAL

Fiscal committee answer changed from 'no' to 'yes', indicating the bill now has state fiscal implications due to the new regulatory and enforcement obligations placed on the Employment Development Department.

TIMELINE

Requires EDD to adopt implementing regulations and submit a detailed impact report to the Assembly and Senate labor committees assessing effects on employers (emphasizing small and medium businesses), international competitiveness, unemployment rates, compensation, and worker retraining. EDD duties take effect upon legislative appropriation.

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

May 14, 2026

Lower · Passed

In committee: Held under submission.

lower

May 6, 2026

Committee

In committee: Set, first hearing. Referred to APPR. suspense file.

lower

Apr 22, 2026

Lower · Passed

From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 3.) (April 21). Re-referred to Com. on APPR.

lower

Apr 14, 2026

Committee

Re-referred to Com. on JUD.

lower

Apr 13, 2026

Lower · Passed

Read second time and amended.

lower

Apr 9, 2026

Introduced

From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 5. Noes 0.) (April 8).

lower

Mar 23, 2026

Committee

Re-referred to Com. on L. & E.

lower

Mar 19, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on L. & E. Read second time and amended.

lower

Mar 19, 2026

Committee

Referred to Coms. on L. & E. and JUD.

lower

Feb 21, 2026

Lower · Passed

From printer. May be heard in committee March 23.

lower

1 primary · 0 co-sponsors