California Expands Layoff Notice Requirements and Employee Record Access Rights

California has enacted two significant labor bills—Senate Bill 617 (SB 617) and Senate Bill 513 (SB 513)—both signed into law and set to take effect on January 1, 2026. These bills will expand employer obligations in workforce management and recordkeeping, requiring businesses to adjust their compliance strategies accordingly.

If you or your business needs legal support regarding California labor law compliance, please contact our legal team at contact@consultils.com. We provide professional and efficient compliance solutions to help businesses effectively prevent and mitigate employment-related risks.

Core Provisions of SB 617

SB 617 expands the California Worker Adjustment and Retraining Notification (Cal-WARN) Act, which requires employers to provide advance notice before mass layoffs, relocations, or plant closures.

Key changes include:

• Broader employer coverage: The 60-day advance notice requirement will apply to a wider range of employers, potentially including smaller businesses previously exempt from Cal-WARN obligations.

• Expanded definition of covered events: The bill extends coverage to previously excluded types of employment losses, meaning more workforce reduction scenarios will trigger notice requirements.

• Increased notification obligations: More companies will need to provide written notice to affected employees, the Employment Development Department (EDD), local workforce investment boards, and chief elected officials.

Core Provisions of SB 513

SB 513 strengthens employee rights regarding personnel records by expanding what constitutes a "personnel file" and enhancing access rights.

Key changes include:

• Broadened definition of personnel files: Employers must include more types of documents in personnel files, potentially encompassing performance evaluations, disciplinary records, and other employment-related documentation.

• Enhanced inspection and copy rights: Employees gain strengthened rights to inspect and obtain copies of their personnel records, requiring employers to respond more promptly to such requests.

• Increased transparency requirements: Personnel file management systems must provide greater accessibility and transparency to employees regarding their employment records.

Impact on California Employers

The passage of SB 617 and SB 513 will significantly reshape California employers’ compliance obligations regarding layoff procedures and personnel record management. Below are the key practical implications these new laws may bring:

Impact of SB 617:

• Loss of delay tactics: Employers can no longer rely on extended planning periods for workforce reductions without triggering notice requirements.

• Increased compliance complexity: Smaller employers may face Cal-WARN obligations for the first time, requiring new administrative procedures and compliance protocols.

• Potential legal liability: Failure to provide proper notice may result in penalties including back pay, benefits for the notice period, and civil fines up to $500 per day of violation.

  
  

Impact of SB 513:

• Administrative burden: HR departments will need additional resources to manage increased personnel file access requests and maintain expanded file contents.

• System upgrades required: Existing recordkeeping systems may need technological updates to accommodate broader file definitions and faster access timelines.

• Heightened scrutiny risk: With greater employee access to records, inconsistencies in documentation or potential discriminatory practices may face increased exposure.

Recommended Actions for Employers

To effectively prepare for these new requirements, California employers should take the following steps before January 1, 2026:

• Conduct a comprehensive policy audit: Systematically review current workforce reduction procedures and personnel file management practices to identify gaps in compliance with the new requirements.

• Update written policies and procedures: Revise employee handbooks, HR manuals, and standard operating procedures to reflect expanded Cal-WARN coverage and personnel file definitions.

• Implement enhanced recordkeeping systems: Upgrade personnel file management systems to accommodate broader document inclusion requirements and streamline employee access processes.

• Train HR and management teams: Provide comprehensive training to HR personnel and managers on new notice requirements, personnel file protocols, and proper response procedures to employee requests.

• Establish rapid response protocols: Create cross-functional teams involving HR, legal, and operations to ensure swift compliance when workforce reductions are planned or personnel file requests are received.

• Strengthen internal communication channels: Develop clear procedures for employees to access their personnel files and understand their rights, reducing potential disputes and regulatory complaints.

  
  

If you or your business needs legal support regarding California labor law compliance, please contact our legal team at contact@consultils.com. We provide professional and efficient compliance solutions to help businesses effectively prevent and mitigate employment-related risks.

Disclaimer: The materials provided on this website are for general informational purposes only and do not, and are not intended to, constitute legal advice. You should not act or refrain from acting based on any information provided here. Please consult with your own legal counsel regarding your specific situation and legal questions.

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As Managing Partner at ILS, Richard Liu ranks among the leading U.S. attorneys in corporate, employment, and regulatory law. He is known for crafting legal strategies aligned with clients’ business objectives and advising Fortune 500 companies, startups, and executives on corporate transactions, financing, privacy, and employment matters across the technology, healthcare, and financial sectors.

Before founding ILS, Richard practiced at top defense firms, where he developed a reputation for anticipating risks and designing strategies that balance protection with growth. He has secured favorable outcomes in contract and intellectual property disputes, represented clients in state and federal courts, and is recognized for combining large-firm expertise with boutique-firm agility. Richard is also a frequent speaker at industry and legal conferences.

Email: contact@consultils.com | Phone: 626-344-8949

As a litigation attorney at ILS, Grace has nearly a decade of experience practicing in both state and federal courts. She focuses on complex commercial, employment, and high-value civil disputes. Grace has secured favorable outcomes for clients in multimillion-dollar cases and is known for her ability to craft effective litigation strategies from case assessment through appeal.

Before joining ILS, Grace practiced in New York, New Jersey, and multiple federal district courts, and served as a law clerk to a Justice of the Alabama Supreme Court. This experience gave her deep insight into judicial decision-making, which continues to inform her strategic approach to litigation.

Email: contact@consultils.com | Phone: 626-344-8949