California Governor Vetoes Bill Expanding WARN Act to Include Contracted Workers

In a move that has sparked controversy, California Governor Gavin Newsom vetoed a bill on Sunday that would have expanded the scope of the Worker Adjustment and Retraining Notification (WARN) Act requirements. This decision has left many questioning the implications for employers and their responsibilities in the event of mass layoffs, relocations, or closures. Let’s delve deeper into the WARN Act, the reasoning behind Governor Newsom’s veto, challenges for HR and employers, liabilities for non-compliance, differences between local and federal WARN Acts, and the importance of HR’s knowledge in navigating these complexities.

Understanding the WARN Act

The WARN Act currently mandates that employers must provide workers with a minimum of 60 days’ notice before implementing mass layoffs, relocations, or closures. It serves as a regulatory mechanism to protect the rights and interests of employees facing sudden job upheavals. The Act helps employees to better prepare for the economic and emotional impact brought about by such significant changes.

Governor Newsom’s veto statement

In his official statement justifying the veto, Governor Newsom expressed concerns about the potential burdens this bill could place on employers. According to him, the proposed legislation would have imposed undue responsibility on employers, creating an administrative nightmare for human resources (HR) departments. While sympathetic to the plight of contract workers, the governor argued that the bill failed to strike a balance between additional protections for these workers and the practical realities faced by employers.

Challenges for HR and employers

Governor Newsom’s veto highlighted one of the significant challenges that HR professionals and employers could have faced if the bill had been enacted. Managing and complying with the proposed expanded WARN Act requirements would have created a complex and time-consuming process for HR departments. The prospect of navigating the nuances of the new legislation while maintaining day-to-day HR functions and compliance with existing rules would undoubtedly have placed a heavy burden on organizations.

Liabilities for non-compliance

Non-compliance with the WARN Act can result in significant financial and reputational consequences for employers. Failure to issue WARN notices correctly, thereby depriving employees of the mandated 60-day notice period, can render employers liable for back pay, benefits, and damages. It is imperative for employers to understand their obligations under the WARN Act to avoid potential legal and financial pitfalls.

Differences in Local and Federal WARN Acts

Adding to the complexity, it is crucial to note that local and federal WARN Acts have different requirements. Compliance with both sets of regulations is paramount for employers operating in multiple states or municipalities. While federal law establishes a baseline standard, the California WARN Act imposes more stringent requirements, making it comparatively more restrictive and demanding for businesses operating within the state.

Importance of HR knowledge

Given the dynamic nature of employment law, HR professionals need to stay informed about the current version and any potential future developments of the WARN Act. Maintaining a comprehensive understanding of the nuances and best practices for issuing WARN Act notices is essential for compliance. HR departments should prioritize regular training and updates to ensure that they can navigate the intricacies of the Act effectively.

Governor Gavin Newsom’s recent veto of the expanded WARN Act bill has raised questions and concerns regarding the responsibilities of employers during times of mass layoffs, relocations, or closures. HR professionals, in particular, must familiarize themselves with the current WARN Act requirements, understanding the potential liabilities associated with non-compliance. Employers must navigate both federal and local variations in the WARN Act to ensure full compliance. As this issue evolves, HR professionals must stay proactive, keep their knowledge up to date, and maintain best practices for issuing WARN Act notices. By doing so, organizations can minimize legal and financial risks while prioritizing the well-being of their employees.

Explore more

How Will the 2026 Social Security Tax Cap Affect Your Paycheck?

In a world where every dollar counts, a seemingly small tweak to payroll taxes can send ripples through household budgets, impacting financial stability in unexpected ways. Picture a high-earning professional, diligently climbing the career ladder, only to find an unexpected cut in their take-home pay next year due to a policy shift. As 2026 approaches, the Social Security payroll tax

Why Your Phone’s 5G Symbol May Not Mean True 5G Speeds

Imagine glancing at your smartphone and seeing that coveted 5G symbol glowing at the top of the screen, promising lightning-fast internet speeds for seamless streaming and instant downloads. The expectation is clear: 5G should deliver a transformative experience, far surpassing the capabilities of older 4G networks. However, recent findings have cast doubt on whether that symbol truly represents the high-speed

How Can We Boost Engagement in a Burnout-Prone Workforce?

Walk into a typical office in 2025, and the atmosphere often feels heavy with unspoken exhaustion—employees dragging through the day with forced smiles, their energy sapped by endless demands, reflecting a deeper crisis gripping workforces worldwide. Burnout has become a silent epidemic, draining passion and purpose from millions. Yet, amid this struggle, a critical question emerges: how can engagement be

Leading HR with AI: Balancing Tech and Ethics in Hiring

In a bustling hotel chain, an HR manager sifts through hundreds of applications for a front-desk role, relying on an AI tool to narrow down the pool in mere minutes—a task that once took days. Yet, hidden in the algorithm’s efficiency lies a troubling possibility: what if the system silently favors candidates based on biased data, sidelining diverse talent crucial

HR Turns Recruitment into Dream Home Prize Competition

Introduction to an Innovative Recruitment Strategy In today’s fiercely competitive labor market, HR departments and staffing firms are grappling with unprecedented challenges in attracting and retaining top talent, leading to the emergence of a striking new approach that transforms traditional recruitment into a captivating “dream home” prize competition. This strategy offers new hires and existing employees a chance to win