As Labor Day approaches, California is now leading the nation in mass layoffs. With 3 million WARN notices issued in FY 22/23 (a mandatory notice when businesses plan to layoff 50+ employees) there seems to be no sign of slowing down.

CABIA recently conducted research comparing the relationship between California employers who have issued WARN notices and those who have been subject to litigation or settlements under California’s Private Attorneys General Act (PAGA).

Our research found PAGA having a significant impact on the viability of legitimate businesses and the job security of their employees. Key takeaways include:

  • Employers subject to a PAGA settlement were 258 times more likely to issue a WARN notice in FY 21/22, and 126 times more likely in FY 22/23, respectively.
  • The average PAGA settlement cost for each of these employers was ~$4 million in FY 21/22;
  • 1 million WARN notices were issued in FY 21/22;
  • 3 million WARN notices were issued in FY 22/23.

You can view the full study here.