California Warn Act and Its Effect on Employees

Feb 7, 2024
/
8 mins to read
California Warn Act and Its Effect on Employees

Understand the importance of the WARN Act and uncover the effects of layoffs on employees in our comprehensive blog. 

WARN Act has been a hot topic since recent massive layoffs in the workforce. Stay tune to learn more about the Californian WARN Act and its impact on employees. 

Introduction

Unfortunately, layoffs became our new routine with the worldwide pandemic in 2020. Last year, we saw another wave of massive layoffs in the film industry due to the strike in Hollywood and the massive layoffs in big tech companies. To protect the employee rights, some 

In this blog, we will review the WARN Act and what’s required for the WARN Act on employees. We will examine both the physical and mental effects on employees. Before the end, we will give some tips for employees impacted by the significant layoff wave. 

What is WARN Act?

According to State of California’s EDD (Employment Development Department), WARN (Worker Adjustment and Retraining Notification) Act aims to protect employees, including their families and communities by mandating the employers to provide a 60-day notice before a mass layoff of 50 or more employees. This beforehand 60-day notice allows employees and their families to have more time to adjust the potential loss of employment and start the alternative job hunt.

What’s Requiered for the WARN Act?

  1. 60-Day Notice Period: In the state of California, employees must inform the employees 60 days before the initial date of the layoff.
  1. Written Notice: The given notice should be delivered in a written form. It can be sent by personal delivery or mail.
  1. Notify Relevant Institutions and Organizations: The 60-day notice should be provided to employees or the union that represent them. The California Employment Development Department, the local workforce development board, state-dislocated worker unit and chief elected officials in the local government should also be notified. 

Physical and Mental Effects of Layoffs

In this part of the blog, we will go over physical and mental effects of layoffs on employees. We know that, the layoff will have physicals and mental tools on employees. Now, we will share five physical and mental impacts.

  1. Stress and Anxiety: During and after the layoff period, employees will more likely feel high level of stress and anxiety. The reason behind this stress is easy; the uncertainty of the future. 
  1. Financial Strain: Employees might struggle to make end meets during the layoff as their source of income has been interrupted. They might have hard time paying the bills, take of care of their loved ones and meet their financial obligations.
  1. Lack of Purpose: Lack of purpose comes hand in hand with the loss of a job and it’s common during the layoff. Employees may experience a lack of purpose and even feel lost during this uncertain time period.
  1. Health Issues: The stress might impact their physical health and reveal problems like headaches, nausia, and insomnia. 
  1. Loss of Self-Esteem: Being laid-off is not something that can be taken easily. It can even create a loss of self-esteem among the unemployed. 

Tips to Handle the Layoff Better

Handling the layoff in one of the mental and phyiscal impacts that we have listed, it can be challenging. It’s important to have few strategies to deal with the stress. We will share five tips that can be helpful during this stressful times. 

  1. Reach out for Support: This is No.1 tip because you need to reach out for support. Talk to others who share the same situation. Contact a therapist if you need to gain more professional insight.
  1. Update your CV and Skills: Turn the uncertainty with working on your future self. Try different templates for CV. Take online free courses towards building your career that give you a certificate.
  1. Explore Alternative Option: You can use your hobbies as a source of income. If you’re good at playing guitar, offer personal guitar class. If you are an artist, you can take small gigs with your current portfolio. Think big, maybe you can find create your own source of income!
  2. Manage Finances Wisely: We know that binging on your favorite Netflix show is great. How about cancelling the subscription to Netflix and enjoying a great book on a topic that interests you? We are sure that you will love reading book.
  1. Networks and Seeking Sources: It can be a great time to connect with an old friend colleague or join LinkedIn groups to stay up-to-day on the industry. 

Conclusion

In this blog post, we have looked in-depth at the WARN Act and its requirements. We have also discussed the physical and mental impacts that layoffs can have on employees, which include financial stress, anxiety, depression, and loss of self-esteem.

It is important to note that the WARN Act is critical as it protects employees and their communities. By giving employees advance notice of layoffs, the act allows them to plan and prepare for the future and find new employment opportunities. To learn more about this act, visit the WARN Tracker.

Gayé Padir
Gayé Padir

Gaye is a Marketing and Content Intern at Litespace. She completed her bachelor's in sociology and later obtained a certificate in marketing. She's eager to combine her sociology knowledge and marketing to create compelling content for Litespace.

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