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AB-1530 Private employment: mass layoffs.(2021-2022)

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Date Published: 02/20/2021 04:00 AM
AB1530:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1530


Introduced by Assembly Member Wicks

February 19, 2021


An act to amend Section 1402 of the Labor Code, relating to employment.


LEGISLATIVE COUNSEL'S DIGEST


AB 1530, as introduced, Wicks. Private employment: mass layoffs.
Existing law prohibits an employer from ordering a mass layoff, relocation, or termination at a covered establishment, as defined, unless, 60 days before the order takes effect, the employer gives written notice to affected employees, as specified. Under existing law, an employer who fails to give the necessary notice is liable to employees who were entitled to notice who lost their jobs for back pay and the value of the cost of benefits, as specified.
This bill would make nonsubstantive changes in the provisions relating to employer liability described above.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 1402 of the Labor Code is amended to read:

1402.
 (a) An employer who fails to give notice as required by paragraph (1) of subdivision (a) of Section 1401 before ordering a mass layoff, relocation, or termination is liable to each employee entitled to notice who lost his or her their employment for:
(1) Back pay at the average regular rate of compensation received by the employee during the last three years of his or her their employment, or the employee’s final rate of compensation, whichever is higher.
(2) The value of the cost of any benefits to which the employee would have been entitled had his or her their employment not been lost, including the cost of any medical expenses incurred by the employee that would have been covered under an employee benefit plan.
(b) Liability under this section is calculated for the period of the employer’s violation, up to a maximum of 60 days, or one-half the number of days that the employee was employed by the employer, whichever period is smaller.
(c) The amount of an employer’s liability under subdivision (a) is reduced by the following:
(1) Any wages, except vacation moneys accrued prior to the period of the employer’s violation, paid by the employer to the employee during the period of the employer’s violation.
(2) Any voluntary and unconditional payments made by the employer to the employee that were not required to satisfy any legal obligation.
(3) Any payments by the employer to a third party or trustee, such as premiums for health benefits or payments to a defined contribution pension plan, on behalf of and attributable to the employee for the period of the violation.