Governor Signs Law to Aid Employees Impacted by Mass Layoffs
Sacramento, CA – Yesterday, Governor Gavin Newsom signed SB 617 into law. The law, authored by Senator Jesse Arreguín (D-Oakland), strengthens the Worker Adjustment and Retraining Notification (WARN) Act by requiring employers to inform impacted workers how to access employment assistance.
“A rapidly changing economy is leading to growing uncertainty and mass layoffs,” said Senator Jesse Arreguín. “This bill helps ensure impacted workers are protected and informed about the services available that can help them get back on their feet.”
Currently, the WARN Act requires employers to send a letter to stakeholders, including the local workforce development board (LWDB), 60 days before a mass layoff occurs. LWDBs may then coordinate support for laid off workers by providing resources around unemployment benefits and workforce development services. However, employers are not required to provide information to impacted workers about these services, meaning there is no guarantee that those who are laid off are made aware of free services that can support them through their period of unemployment. SB 617 makes this a requirement, improving communications to assist employees facing layoffs.
“SB 617 represents a critical step forward in protecting California’s workers during times of economic transition. This bill supports employees facing mass layoffs to immediately access workforce development resources and CalFresh food assistance. These changes promote transparency, accountability, and timely access to critical support services,” said Alameda County Board of Supervisors Vice President Lena Tam. “I commend Senator Arreguín for championing this legislation and thank Governor Newsom for signing SB 617 into law. Our communities deserve transparency, dignity, and support when facing job displacement.”
The Bureau of Labor Statistics reported that nationwide, only 22,000 jobs were created in August, far below the prediction of 75,000 jobs, while unemployment has increased to 4.3%. Furthermore, the report showed that those experiencing unemployment are having difficulty finding a new job, with over a quarter of those unemployed having been out of a job for over six months, the highest number since June 2016. According to the California Economic Forecast, unemployment in the state is expected to reach at 6% in 2026. Businesses throughout the country have frozen hiring as a result of continued uncertainty over President Trump’s tariffs, with concerns that the tariffs could cause a prolonged period of stagflation.
In California, the first few months of 2025 set the trend for mass tech layoffs, with industry leaders such as Meta, Stripe, Microsoft, and Salesforce dramatically reducing headcounts. Advancements in artificial intelligence are raising concern that more jobs will be replaced by AI. Additionally, reports from UC Merced found that major immigration raids across the state over the summer created a chilling effect, with less people reporting to work, disrupting supply chains which resulted in further job losses impacting workers regardless of citizenship or immigration status.