Assembly Member Matt Haney, D-San Francisco, has proposed a bill that would extend the Worker Adjustment and Retraining Notification Act (WARN) to cover contract workers, increase the required notice period for layoffs to 90 days, and ban companies from requiring terminated workers to sign non-disclosure or non-disparagement agreements as a condition of receiving WARN Act notice or pay.
Proposed Bill Seeks to Extend WARN Act Coverage to Contract Workers and Expand Advance Notice Period
Contract employees are currently not covered by the WARN Act, which mandates that large companies cutting more than 50 jobs must either give workers two months’ notice or pay them two months of wages. Haney said the proposed bill would protect contract workers and ensure they are treated fairly. The California Chamber of Commerce has not yet taken a position on the bill, but some members have expressed concerns that the longer notice period could force companies to cut an employee sooner than they otherwise would have, which could have a detrimental impact on employees.
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