Under California law, employers who directly or indirectly own a covered establishment must give notice to affected employees of the covered establishment. A covered establishment is any industrial or commercial facility or part thereof that employs or has employed 75 persons within the preceding 12 months.3 There is no requirement that the worker be employed full time; both full- and part-time employees will be counted toward California’s 75 person requirement.

State law does not apply to employees who were hired with the understanding that their employment is seasonal and temporary. State law also does not apply to employees who were hired with the understanding that their employment was limited to the duration of a particular project or undertaking by an employer who is covered by Wage Order 11, Broadcasting Industry; Wage Order 12, Motion Picture Industry; or Wage Order 16, Certain On-Site Occupations in the Construction, Drilling, Logging and Mining Industries.4

If a parent organization orders a workforce reduction, the parent organization is responsible for its subsidiaries’ notice obligations, even if the parent does not directly operate the affected facility.

An organization that provides outsourced personnel management, payroll and human resources administrative services cannot be held liable for its client’s failure to provide legally required mass layoff notices. In Administaff Companies v. New York Joint Board, the outsourcing company did not participate in the decision to close the plant, nor was it aware of the plan until after the plant closed. Although it was a co-employer to the extent it provided group benefits and workers’ compensation insurance, it did not share ownership, directors or officers; maintain common personnel policies with the failing company; nor did it exercise control over employees or operations.5

1. 29 U.S.C. 2101(a)(1)(A), (8)