Labor Commissioner Explains Rules to Remember in Tough Times in CalChamber Web Interview

(March 13, 2009) In a series of web interviews with California Chamber of Commerce President Allan Zaremberg, California Labor Commissioner Angela Bradstreet explains how employers can stay in compliance with the law when dealing with layoffs, plant closure notices and voluntarily acknowledging a mistake.

Layoffs and Final Pay

The first video explores what laws employers have to comply with when conducting a layoff, especially with regards to payroll.

“These are very tough times for employers and workers,” said Commissioner Bradstreet. “And it’s more important than ever for the protection of workers and employers…that everybody pay strict adherence to the legal requirements when it comes to terminating employers and the rights of workers upon being laid off, terminated, or otherwise discharged.”

Commissioner Bradstreet explained that all discharged workers are entitled to their final pay “immediately.”

“Immediately means immediately,” she said. “Immediately means the same day as the layoff, termination or discharge.”

Commissioner Bradstreet also explained that the final pay can also include accrued vacation because those hours are “deemed to be wages under California law.”

 Layoffs/Final Pay

Plant Closure Notices - Worker Adjustment and Retraining Notification (WARN) Act

The federal Worker Adjustment and Retraining Notification Act does not apply to all California companies, the Commissioner explained.

The WARN Act requires employers with 100 or more employees to give 60 days’ notice before a layoff of 50 or more employees.

“It is within the businesses’ economic interest to comply with the WARN Act,” the Commissioner said. “Failure to comply will lead to even more exposure, possible attorney’s fees, and additional penalties under WARN.”

 Plant Closure Notices

Voluntary Compliance

The final interview explains how employers can work with the Labor Commissioner’s Office to resolve mistakes made by the employer.

In the last 18 months, the Commissioner’s office has effectuated $30 million in voluntary compliance settlements.

Commissioner Bradstreet encouraged employers to come forward to her office to resolve any outstanding compliance issues to reduce the employers’ exposure.

“It is very important to understand, that unless they take care of the problem, in virtually all of these cases, the exposure is escalating on a daily basis, the violations are escalating on a daily basis. So until they fix the problem, their exposure continues to escalate,” she said.

 Voluntary Compliance

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