Being laid off from a job is a scary and stressful experience. No matter what your job is or how secure you feel, the reality is that you could lose your job at any time. Owning the distinction as having the largest economy in the United States, California has experienced a significant increase in layoff rates over the past few years. The COVID-19 pandemic in 2020 was the main culprit, leading to a sharp increase in unemployment and a wave of layoffs across the state, especially in the hospitality, retail, and entertainment industries.
While California is an “at-will” state, there are certain protections in place for workers when it comes to being laid off. Most of the time, being laid off is a frustrating experience. Not only does it have a significant impact in the short-term, forcing you to miss out on a paycheck to provide for your family, but it can also affect you emotionally and mentally in the long-term. Losing trust in an employer is never the outcome you want, but as you will see, being one of the thousands of California employees that get laid off can offer you certain ways to hold your employer accountable under the law.
Work With Experienced California Employment Lawyers
Our founder, attorney Martin Gasparian, started Maison Law with the purpose of standing up for individuals who have been impacted by the unlawful decisions of their employers. When you’ve been laid-off, there are procedures in place that require your employer to provide you with certain information, as well as benefits to get you through.
Our team of experienced, compassionate California employment lawyers knows how to apply these regulations and procedures to your specific situation. Contact us today for a free consultation if you would like to learn your next steps.
What Factors Into the Layoff Rates in California?
When a worker in California is laid-off, they are considered to be unemployed. Despite the recent economic growth and declining unemployment rate, the layoff rate in California remains higher than pre-pandemic levels.
According to the California Employment Development Department (EDD), the state’s unemployment rate was 4.1% in December 2022. While this average is steady throughout 2022, there are several factors that impact this number, such as:
- Technology – One of the key factors contributing to the high layoff rate in California is the ongoing technological transformation that is disrupting traditional business models and creating new ones. Automation and artificial intelligence are replacing human labor in many industries, leading to job losses and creating a need for new skills.
- Cost of living – Another factor is the high cost of living in California, which makes it challenging for businesses to remain competitive and retain employees. The high cost of housing, healthcare, and other essentials puts pressure on employers to reduce costs and often results in layoffs.
- COVID-19 – The COVID-19 pandemic, although substantially slowed, is still an ever-present threat to workers and companies alike in California. The nature of the virus means having a significant impact on the state’s economy, with many small businesses struggling to survive and laying off employees. The rapid shift to remote work and online commerce has also led to job losses in brick-and-mortar retail and office spaces.
In order to combat these factors, the government has taken several measures to support workers and businesses in recent years, including expanding unemployment benefits and providing small business loans. Still, understanding what your rights are under the law may be able to help you if you’ve been laid off by your employer.
California Law and Being Laid-Off
Just because California is an at-will employment state doesn’t mean that you or other workers are totally exposed to being fired or laid-off without warning or provocation. While it is technically true that your employer can end your employment at any time, California does provide its workers with a relative safety net in the event that they are laid-off or fired illegally. These protections include:
- The California WARN Act – The California Worker Adjustment and Retraining Notification (WARN) Act requires employers with 75 or more employees to give 60 days’ notice before a mass layoff or plant closure. This
- Leaves of Absence – Under the law, employers in California cannot terminate or lay off employees for taking a protected leave of absence, such as family and medical leave. These legal protections include both state and federal laws like the Family Medical Leave Act (FMLA) and the California Family Rights Act (CFRA).
- Discrimination or Retaliation – Under California’s Fair Employment and Housing Act (FEHA), employers cannot lay off workers based on protected characteristics such as race, gender, age, color, or medical condition.
While these and other legal mechanisms are in place to protect workers, California also has available benefits to those who have been laid-off or otherwise separated from their employment. These benefits usually include:
- Unemployment Benefits – Employees in California who are laid off may be eligible for unemployment insurance benefits. These benefits are usually available for up to 26 weeks if your claim is approved. To apply for unemployment benefits through the EDD, you will need to provide information about your previous employment, earnings, and the reason for your job loss.
- Rehire Rights – Employers must offer to rehire to laid off employees if a similar position becomes available within a certain time frame. These rights vary based on employment contracts and other provisions, but when your employer fails to rehire you because of one of the above reasons, they will be in violation of the law.
No matter what the reason is that you’ve been laid-off, you are still likely struggling with the aftermath. However, consulting with our team of experienced California employment lawyers can give you a better idea of what your options are.
Connect With Maison Law Today If You Have Been Laid-Off in California
The high layoff rate in California is a complex issue with multiple contributing factors. However, the fact remains that your employer has certain legal requirements to follow when they decide to lay off their employees. When they try to get around these requirements, they very likely will have violated your rights. If this has happened to you, or if you would simply like to better understand your options, contact us today for a free consultation.
