Haney’s Bill Protecting California Workers During Mass Layoffs Passes Out of Legislature and Heads to Governor’s Desk

Haney’s Bill Protecting California Workers During Mass Layoffs Passes Out of Legislature and Heads to Governor’s Desk

AB 1356 expands and strengthens protections and notice requirements for employees impacted by recent mass layoffs

Sacramento – Assemblymember Matt Haney’s (D-San Francisco) AB 1356 cleared its final legislative hurdle by passing out of the California State Senate with 29 votes and the Assembly with a final vote of 62 in support. 

Since the start of 2022, the tech industry has eliminated more than 200,000 jobs, including reductions in staff at nearly all big tech companies. Twitter notably laid off 4,400 of their 5,500 contract workers without notice or severance. Contract workers often do the same work as their directly-employed peers while making less money, receiving fewer benefits, and with less career mobility.

“Innovative industries like tech are a critical part of our state's economy, and we know that tech companies start here and grow here because of our highly skilled workforce,” said Haney. “This bill is about protecting that workforce, from the engineers to the janitors, and making sure they’re treated fairly during a job transition. To be pro tech, we have to be pro tech-workers. Our workers are why these companies are in California. If we don’t take care of our tech workers then we’ll lose one of California’s greatest resources to states like Texas, Washington, or New York.”

AB 1356 strengthens directly-employed and contract worker protections by enacting the following regulations:

• Requires that employers who lay off more than 50 workers at a time—through no fault of the workers themselves— provide their employees with 75 days notice.

• Closes a loophole that allows companies to hire large amounts of workers as contractors without providing them the same layoff protections as directly hired employees. 

• Prohibits employers from pressuring employees to sign away their rights in exchange for their mass layoff protections.