CITY COUNCIL: Informational Report-Labor Laws

TO: MAYOR McCLOUD AND COUNCIL MEMBERS
FROM: JASON STILWELL, CITY ADMINISTRATOR
DATE: JANUARY 10, 2012
SUBJECT: INFORMATIONAL REPORT- LABOR LAWS

At its meeting ofNovember 1, 2011, City Council directed staff to research applicable labor laws for commercial establishments that govern employer requirements in instances where employees are laid off, relocated, or terminated. Relocations, terminations and mass layoffs in California are regulated by Labor Code Sections 1400-1408. Noticing requirements comply with the Federal Worker adjustment and Retraining Notification Act (29 u.s.c. section 2101 et seq.) (Labor code section 1401 (a)- (c).

Under Federal and California WARN laws, the Worker Adjustment and Retraining Notification (WARN) Act requires employers with 50 or more employees to give proper notice 60 days in advance prior to a plant closing, mass layoff, or relocation. The WARN Act provides protection to employees, their families, communities, by requiring employers to give affected employees and other state and local representatives proper notice in advance. Advance notice provides employees and their families some transition time to adjust to the prospective loss of employment, to seek and obtain alternative jobs, and if necessary, to enter skills or retraining that will allow them to successfully compete in the job market.

The WARN Act has different noticing requirements, exceptions, and exemptions for "covered establishments" or "plant closings" with respect to the number of employees. Employers can contact the Employment Development Department (EDD) for information on theW ARN Act or can access the information at http://www.edd.ca.gov.

The Department of Labor (DOL) and Department oflndustrial Relations (IDR) provide various protections to employees. EDD also has programs to assist employees and workers during a mass layoff. These include adult and dislocated workers services under Title 1 of the Workforce Investment Act and through the One-Stop Career Centers and Unemployment Insurance programs. See the attached information from EDD on the Federal and State provisions for Employers regarding the WARN Act.

For union workers, layoffs are usually governed by the union contract and for non-union workers, employment in California is at-will.

The City of Carmel has very few business establishments, if any, with 50 or more employees and the WARN Act does not apply with fewer than 50 employees.

Council is cautioned to offer any advice regarding labor laws to any employer or employees.