Closing Your Business

Worker Adjustment and Retraining Notification (WARN) Act for Plant Closures and Mass Layoffs

Who is covered by the WARN Act?

In general, California employers are covered by the WARN Act if they have 100 or more employees. This does not include employees who:

• have worked less than 6 months in the last 12 months, or
• work an average of less than 20 hours a week.

What is the WARN Act?

The WARN Act provides protection to employees, their families and communities by requiring employers to give affected employees written notice at least 60 days in advance of any plant closing or mass layoff.

What type of employer is covered by the WARN Act?

• Private for-profit employers and private nonprofit employers.
• Public and quasi-public entities that operate in a commercial context and are separately organized from the regular government.

For detailed information, review the WARN Act section of this Web site.

California employers are required to provide information about claims for benefits to workers who become unemployed. The EDD publication For Your Benefit – California’s Programs for the Unemployed (DE 2320) meets this requirement.

The DE 2320 (available in English, Spanish, Chinese, and Vietnamese) can be:

• Printed from the Forms and Publications section of this Web site
• Ordered using the Internet order form
• Picked up at your nearest Employment Tax Office

If you no longer have employees and will not be reporting wages in any future quarter, you must send EDD a final:

• Payroll Tax Deposit (DE 88/DE 88ALL) with payment,
• Quarterly Wage and Withholding Report (DE 6), and
• Annual Reconciliation Statement (DE 7).

Be sure to check Box D "Out of Business/Final Report" on the DE 6 and Box B "Out of Business/Final Statement" on the DE 7.

You must submit these documents within 10 days of closing your business, regardless of the normal due date.

NOTE: If you pay your taxes by electronic funds transfer (EFT) and will no longer submit EFT payments, please notify the EFT Unit:

Employment Development Department
EFT Unit, MIC 15
PO Box 826880
Sacramento CA 94280-0001
Fax: (916) 654-7441

See Obtaining Tax Forms and Publications to get any forms you may need.

• From the Secretary of State:
  • Corporations
    
  • Limited Liability Companies
    
  • Limited Liability Partnerships
    
  • Limited Partnerships
    
• California Small Business Assistance Center
  
• From the Franchise Tax Board:
  • Tax Clearance for Corporations
  
  

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