California employers face new compliance challenges beginning January 1, 2026, when Senate Bill 617 (SB 617)—an amendment to the California Worker Adjustment and Retraining Notification Act (CalWARN)—takes effect.
This legislation significantly expands employer notice requirements during mass layoffs, relocations, or business closures, increasing both administrative burdens and legal exposure.
At its core, SB 617 is designed to improve employee access to state-sponsored job training and assistance programs, while requiring employers to provide greater transparency and coordination during workforce reductions.
Background: What Is CalWARN?
The CalWARN Act (California Labor Code §§ 1400 et seq.) applies to employers operating “covered establishments”—industrial or commercial facilities that employ or have employed 75 or more workers within the previous 12 months.
When a covered employer initiates a mass layoff, relocation, or termination, the law mandates 60 days’ advance written notice to:
- Affected employees
- The California Employment Development Department (EDD)
- The local Workforce Development Board
- Local government officials (county and city)
Failure to comply can result in substantial penalties, including back pay, benefits, and civil penalties.
Key Updates Under Senate Bill 617
While the triggering events and notice recipients remain the same, SB 617 introduces new mandatory content for every CalWARN notice issued after January 1, 2026.
1. Statement on Coordination Services
Employers must disclose whether they intend to coordinate rapid response or reemployment services through a local Workforce Development Board (LWDB), another organization, or none at all.
2. Local Workforce Development Board Contact Information
Each notice must include the LWDB’s valid email address and phone number, plus a brief description of the services available, such as:
- Resume and interview assistance
- Job search and placement support
- Training opportunities through California’s America’s Job Centers
3. CalFresh Food Assistance Program Information
Employers must add a short explanation of CalFresh, including:
- Program description
- CalFresh Benefits Help Line
- Link to the official CalFresh website
4. Employer Contact Information
Employers must list a valid email address and telephone number for employee inquiries.
5. Coordination Deadline
If an employer chooses to partner with an LWDB or another organization, those services must be arranged within 30 days after the CalWARN notice is issued.
Legal and Practical Implications
According to Paul P. Cheng, Esq., a former prosecutor and mediator, now a respected Southern California trial attorney,
“SB 617 isn’t merely an administrative change—it raises the bar for corporate accountability during economic downsizing. Employers must now view CalWARN compliance as a strategic, proactive process rather than a last-minute paperwork requirement. Any oversight can quickly translate into costly litigation.”
While the statute does not explicitly clarify whether every version of the notice (such as those sent to agencies) must include all new content, the prudent approach is to include all required elements in every CalWARN notice, regardless of the recipient.
Employer Action Steps Before 2026
With the compliance date approaching, employers should take the following actions now to reduce legal risk:
1. Audit Current CalWARN Templates
Update notice language to include the new required statements and contact information.
2. Engage Local Workforce Development Boards
Identify the LWDB covering each facility and confirm the types of rapid response services available.
3. Train HR and Legal Teams
Ensure internal staff understand the expanded requirements and deadlines.
4. Coordinate with Legal Counsel
Review layoff or closure plans with employment counsel to determine whether CalWARN and federal WARN apply.
5. Develop Communication Protocols
Prepare consistent messaging for affected employees to minimize confusion and potential claims.
Employers who prefer not to disclose planned workforce reductions prematurely may include a statement that they “currently do not plan to coordinate services” and later modify this once official notices are issued.
Conclusion
SB 617 represents a major expansion of CalWARN obligations and increases the administrative and financial consequences for employers that fail to comply. By acting early—reviewing procedures, coordinating with local agencies, and consulting legal counsel—employers can ensure smooth transitions and avoid litigation exposure.
The Law Offices of Paul P. Cheng & Associates remains committed to helping businesses navigate California’s evolving employment laws.
If you have questions about CalWARN compliance, mass layoff planning, or employee notification requirements, contact our firm today for customized legal guidance.