BILL ANALYSIS Ó
AB 1543
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Date of Hearing: March 19, 2014
ASSEMBLY COMMITTEE ON LABOR AND EMPLOYMENT
Roger Hernández, Chair
AB 1543 (Holden) - As Introduced: January 23, 2014
SUBJECT : Employment: mass layoffs, relocations, and
terminations.
SUMMARY : Includes the Governor's Office of Business and
Economic Development (GO-Biz)
in the required written notification (notice) from an employer
ordering a mass layoff, relocation, or termination and requires
the Employment Development Department (EDD) to post the notice
on its Internet Web site, upon receipt.
EXISTING STATE LAW :
1)Prohibits an employer from ordering a mass layoff, relocation
or termination of a covered establishment unless the employer
first gives 60 days' prior written notice to affected
employees, the EDD, the local workforce investment board and
specified government officials within which the termination,
relocation or mass layoff occurs.
2)Creates the Governor's Office of Business and Economic
Development and requires that the office serve the Governor as
the lead entity for economic strategy and the marketing of
California on issues relating to business development, private
sector investment, and economic growth.
EXISTING FEDERAL LAW requires most employers with 100 or more
employees to provide employees, bargaining representatives of
the employees (i.e., unions), and specific government agencies
at least 60 days' notice of any plant closing and mass layoff,
as defined with specified exemptions. Also known as the federal
Worker Adjustment and Retraining Notification Act (WARN Act).
FISCAL EFFECT : Unknown
COMMENTS : The purpose of the state and federal WARN Acts is to
provide protection to affected workers, their families and
communities by requiring employers to give advance written
notice of plant closings, mass layoffs or relocations.
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The advance notice provides workers and their families some
transition time to adjust to the prospective loss of employment,
to seek and obtain alternative jobs and, if necessary, to
possibly enter skill training or retraining that will allow
these workers to successfully compete in the job market and
continue vital financial support to their families.
Additionally, the notice gives State dislocated worker units,
such as EDD, the opportunity to ensure dislocated worker
assistance can be promptly provided.
The Director, Kish Rajan of GO-Biz stated that the directive
given to him by Governor Brown is to enhance California's job
creation effort by streamlining business regulations, promoting
statewide economic development and fostering greater
international trade opportunities. According to their Web site,
in 2011, GO-Biz directly assisted more than 3,595 businesses,
which created or saved over 6,000 jobs and brought over $750
million in investment to our state. Major companies like Dell
Inc., Soitec, Zollner Electronics, SunEdison, electric car
manufacturer CODA and Caterpillar Logistics all expanded in
California.
PRIOR LEGISLATION :
AB 2957 (Koretz) Chapter # 780, Statutes of 2002 created the
requirement that employers give workers and specified government
agencies 60 days' notice of a mass layoff, relocation or
termination.
REGISTERED SUPPORT / OPPOSITION :
Support
None on file.
Opposition
None on file.
Analysis Prepared by : Lorie Alvarez / L. & E. / (916)
319-2091
AB 1543
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