California Governor Gavin Newsom recently vetoed Assembly Bill (AB) No. 1356, which proposed amending the California Worker Adjustment and Retraining Notification (Cal-WARN) Act. If accepted, the bill would have necessitated employers to offer workers an earlier notification in the event of a mass dismissal. This event transpired on October 8, 2023, with the veto effectively maintaining the status quo for employer-employee communication in the face of layoffs.
The bill in question, AB 1356, sought to amend specific sections of the California Labor Code, particularly sections 1400-1408. The proposed amendments aimed to extend the notice period for a mass layoff, closure, or relocation from 60 days to 75 days. Thus, employees would have enjoyed an additional two weeks of notice, thereby providing them additional time to adjust and plan following a prospective layoff.
According to a JDSupra report, Newsom’s decision to veto the bill surprised many legal experts and employment law-watchers. The Governor, however, has yet to provide expansive commentary or a detailed rationale behind the veto of the AB 1356 bill.
It’s crucial for legal professionals, particularly those in the employment law field, to understand and keep abreast with these developments. This veto may influence trends in labor legislation and could potentially set a precedent for future layoff notice laws. It emphasizes the importance of tracking legal changes not only in proposed bills but also the potential vetoes that can significantly affect existing laws.
This decision serves as a reminder that, whilst it’s challenging to predict proposed amendments’ fate, it’s equally imperative to remain informed about executive decisions that can dramatically influence employee rights and employer responsibilities.