California 2023-2024 Regular Session

California Assembly Bill AB1356

Introduced
2/17/23  
Refer
3/2/23  
Refer
3/2/23  
Report Pass
3/30/23  
Report Pass
3/30/23  
Refer
4/3/23  
Report Pass
4/13/23  
Report Pass
4/13/23  
Refer
4/13/23  
Refer
4/13/23  
Report Pass
4/25/23  
Report Pass
4/25/23  
Refer
4/27/23  
Refer
4/27/23  
Refer
5/10/23  
Refer
5/10/23  
Report Pass
5/18/23  
Report Pass
5/18/23  
Engrossed
5/31/23  
Engrossed
5/31/23  
Refer
6/1/23  
Refer
6/14/23  
Refer
6/14/23  
Report Pass
6/22/23  
Report Pass
6/22/23  
Refer
6/22/23  
Refer
6/22/23  
Report Pass
7/13/23  
Refer
7/13/23  
Refer
7/13/23  
Refer
8/14/23  
Report Pass
9/1/23  
Report Pass
9/1/23  
Enrolled
9/12/23  
Enrolled
9/12/23  
Vetoed
10/8/23  

Caption

Relocations, terminations, and mass layoffs.

Impact

The main impact of AB 1356 will be felt in the realm of employee rights within the labor market. The new requirements will mandate that employers provide timely notification to affected employees and local governments, significantly more advance notice than previously required. This change is designed to give workers more time to prepare for potential job loss, seek new employment opportunities, or access retraining programs, effectively aiming to reduce the economic shock associated with sudden job layoffs. The bill also enforces penalties for non-compliance and specifies that contractual agreements that attempt to limit employee rights in laying off circumstances can be deemed void.

Summary

Assembly Bill 1356, introduced by Assembly Member Haney, modifies California's Worker Adjustment and Retraining Act in significant ways. This bill addresses the procedure surrounding mass layoffs, relocations, and terminations, specifically extending the required notice period for such actions from 60 days to 75 days. By enforcing stricter notice requirements, the bill aims to provide greater protection for employees impacted by such labor market changes. Additionally, it makes specific changes regarding which entities must receive this notice and introduces new definitions related to the term 'covered establishment.'

Sentiment

The response to AB 1356 has been generally positive among labor advocacy groups, who view the changes as necessary enhancements to protect employee rights amid corporate restructuring. Proponents argue that the bill ensures fair treatment of workers, allowing them a reasonable timeframe to adapt to changes in their employment status. However, there are concerns from some business groups regarding the additional burden this law may impose on employers who must navigate these changes while managing their business operations.

Contention

Notably, areas of contention include the bill's provisions about labor contractors and the extent of the seasonal employment exemption. As the bill defines 'labor contractors' within the context of employment relations, it raises questions about how these entities will comply with the extended notice requirements. Additionally, some critics argue that the burden placed on businesses could deter hiring or lead to more conservative workforce management practices in an effort to avoid potential legal penalties.

Companion Bills

No companion bills found.

Previously Filed As

CA AB1601

Employment protections: mass layoff, relocation, or termination of employees: call centers.

CA SB547

Relating to transfers of operations, terminations of operations, mass layoffs and changes in control.

CA SB321

Relating to transfers of operations, terminations of operations, mass layoffs and changes in control.

CA HB5890

Labor: fair employment practices; severance pay for certain employees who are laid off; require employers to pay for relocations and mass layoffs. Creates new act.

CA AB1530

Private employment: mass layoffs.

CA SB209

Requires advance notice of mass layoffs and closure of certain businesses. (8/1/18)

CA HB815

Requiring notification of employees, the Department of Labor and Industry and municipalities when mass layoffs and business closings occur; and providing for civil penalties and for powers and duties of the Department of Labor and Industry.

CA HB1953

Requiring notification of employees, the Department of Labor and Industry and municipalities when mass layoffs and business closings occur; and providing for civil penalties and for powers and duties of the Department of Labor and Industry.

CA H1899

Relative to the notification of large job layoffs

CA H2127

Relative to the notification of large job layoffs

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