BILL ANALYSIS �
Senate Committee on Labor and Industrial Relations
Senator Ben Hueso, Chair
Date of Hearing: June 11, 2014 2013-2014 Regular
Session
Consultant: Deanna D. Ping Fiscal: Yes
Urgency: No
Bill No: AB 1543
Author: Holden
As Introduced: April 21, 2014
SUBJECT
Employment: mass layoffs, relocations, and terminations.
KEY ISSUE
Should the legislature include the Governor's Office of Business
and Economic Development (Go-Biz) in the required written
notification from an employer ordering a mass layoff,
relocation, or termination?
Should the legislature require the Economic Development
Department and Governor's Office of Business and Economic
Development to post the notice on their respective websites?
ANALYSIS
Existing law states that an employer may not order a mass
layoff, relocation, or termination at a covered establishment
unless the employer first gives 60 days' prior written notice to
affected employees, the Employment Development Department, the
local workforce investment board and specified government
officials within which the termination, relocation, or mass
layoff occurs (Labor Code �1401).
Existing law 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 under the Worker Adjustment and Retraining
Notification Act (WARN Act), requires most employers with 100 or
more employees to provide employees, bargaining representatives
of the employees, and specific government agencies at least 60
days' notice of any plant closing or mass layoff, as defined
with specific exemptions.
This bill would require the Employment Development Department
upon receipt of the written notice, to forward a copy of the
notice to the Governor's Office of Business and Economic
Development.
This bill would also require the Employment Development
Department and the Governor's Office if Business and Economic
Development to each post the notice on their websites.
COMMENTS
1. Need for this bill?
The purpose of the state and federal WARN Act 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. This advance notice
provides workers and their families with 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.
According to the author's office, AB 1543 will encourage the
Governor's Office to respond and quickly assist an employer
who is relocating or closing. Alerting the GO-Biz would help
it identify ways in which state resources can be utilized to
keep these operations in California.
2. Proponent Arguments :
None on file.
Hearing Date: June 11, 2014 AB 1543
Consultant: Deanna D. Ping Page 2
Senate Committee on Labor and Industrial Relations
3. Opponent Arguments :
None on file.
4. Prior Legislation :
AB 2176 (Perez) of 2014, has language very similar to AB 1543.
AB 2176 was held in Assembly Appropriations.
AB 53 (Perez) of 2013, would have required the Governor's
Office of Business and Economic Development (GO-Biz) to lead
the preparation of the California Economic Development
Strategic Plan (ED Strategy), as specified. In addition, the
bill requires a copy of the Worker Adjustment and Retraining
Notification Act (WARN) notice be provided to GO-Biz and that
it be posted on the Employment Development Department (EDD)
Web site. AB 53 was vetoed by Governor Brown.
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.
SUPPORT
None on file.
OPPOSITION
None on file.
Hearing Date: June 11, 2014 AB 1543
Consultant: Deanna D. Ping Page 3
Senate Committee on Labor and Industrial Relations