The same steps the federal government and many state governments are taking to protect citizens from the coronavirus known as COVID-19 are — not by design but by unintentional consequence — slowing down the economy and hurting many businesses. Especially small businesses like the ones we often work with here at Stees, Walker & Company, LLP. Looking at the prospect of going for several weeks or months without revenue or with significantly diminished sales, small-business owners we work with are naturally worried about paying rent and covering payroll. Some have already had to lay off employees.

Fortunately, some relief is on the way. Here in California, on March 17 of this year, Governor Gavin Newsom signed an executive order suspending the requirement that employers provide 60-day notice for any mass layoffs. One day later, the U.S. Congress passed the Families First Coronavirus Response Act to expand the Family Medical Leave Act (FMLA) and related tax credits for employers.

In this post, we offer an overview of what the U.S. government and the State of California’s latest efforts mean for small businesses. First up, the suspending of the 60-day notice for mass layoffs.

Suspending the 60-Day Notice Requirement for Mass Layoffs

California employers required to adhere to the Worker Adjustment and Retraining Notification (WARN) Act and Cal-WARN Act are required to provide 60-day advance notice of any plans for mass layoffs or terminations. Governor Newsom’s executive order (No. N-31-20) suspends the 60-day notice requirement for forced closings, relocations, or layoffs directly related to the coronavirus known as COVID-19. The Governor’s executive order remains in effect for the duration of California’s current State of Emergency.

Note: Newsom’s executive order does not suspend WARN (Worker Adjustment and Retraining Notification act) or Cal-WARN in their entirety — employers are still required to honor their other obligations under these acts.

As a California employer, you’re still required to provide written notice to Continue reading… Continue reading… Continue reading…