BILL ANALYSIS �
AB 1543
Page 1
ASSEMBLY THIRD READING
AB 1543 (Holden)
As Amended April 21, 2014
Majority vote
LABOR & EMPLOYMENT 6-0 APPROPRIATIONS 17-0
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|Ayes:|Roger Hern�ndez, Morrell, |Ayes:|Gatto, Bigelow, |
| |Alejo, Chau, Gomez, | |Bocanegra, Bradford, Ian |
| |Holden | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Holden, Jones, Linder, |
| | | |Pan, Quirk, |
| | | |Ridley-Thomas, Wagner, |
| | | |Weber |
|-----+--------------------------+-----+--------------------------|
| | | | |
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SUMMARY : Requires the Employment Development Department (EDD),
upon receipt, to forward a copy of the written notification
(notice) from an employer ordering a mass layoff, relocation, or
termination to the Governor's Office of Business and Economic
Development (GO-Biz) and requires both to post the notice on
their Internet Web sites.
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).
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, EDD, the local workforce investment board and
specified government officials within which the termination,
relocation or mass layoff occurs.
2)Creates GO-Biz and requires that the office serve the Governor
as the lead entity for economic strategy and the marketing of
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California on issues relating to business development, private
sector investment, and economic growth.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, minor absorbable costs to EDD.
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.
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 Governor's Office of Economic Development which serves the
needs of businesses and economic developers was renamed as the
Governor's Office of Business and Economic Development (GO-Biz)
in 2010.
Prior legislation: AB 2176 (John A. P�rez) of the current
legislative session, would require GO-Biz to develop
recommendations for a state economic development plan and to be
notified when an employer submits notice to the state of his or
her intent to undertake a mass layoff, as specified. This bill
is pending in the Assembly.
AB 53 (John A. P�rez) of 2013, would have required GO-Biz to
prepare the California Economic Development Strategic Plan and a
triennial report to the Legislature. AB 53 also required a copy
of the WARN notice be provided to GO-Biz and posted on the EDD
Web site. The bill was vetoed by Governor Brown.
AB 2957 (Koretz), Chapter 780, Statutes of 2002, created the
requirement in our state that employers give workers and
specified government agencies 60 days' notice of a mass layoff,
relocation or termination.
AB 1543
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Analysis Prepared by : Lorie Alvarez / L. & E. / (916)
319-2091
FN: 0003223