What happens to your pay when your job closes or lays people off

This page is general information, not legal advice. Layoff rules depend on the size of the employer and the number of people affected.

What am I owed on my last day?

All the wages you earned, right away. When your employer ends your job, including a layoff, every wage you earned and any vacation you earned but did not use is due immediately at the time your job ends (Labor Commissioner FAQ). Some industries have their own timing, like seasonal food processing (within 72 hours) and oil drilling (within 24 hours).

If your employer willfully pays late, it can owe you a waiting time penalty: a day's pay for each day you wait, up to 30 days (Labor Commissioner FAQ). See Your final paycheck for a letter you can send.

Also check:

• Overtime, commissions and bonuses you already earned
• Expenses you paid for the job, like tools or mileage
• Your last few days, which are easy to forget in a rush

Does my employer have to warn us?

Bigger employers do. California's WARN Act covers a worksite that had 75 or more workers, full or part time, at any point in the past 12 months. Workers count if they worked at least 6 of the 12 months before the notice (EDD).

A covered employer must give at least 60 days' notice before:

• A closing of the worksite, no matter how many people lose their jobs
• A mass layoff of 50 or more workers within 30 days, no matter what share of the workforce that is
• A move of the work 100 miles or more away
• Moving a call center to another country

The notice goes to affected workers, EDD, the local workforce board, local elected leaders, and any union (EDD).

What the notice must say. It must give the expected dates, the jobs affected, and whether the layoff is permanent or temporary. Since 2026, a law called SB 617 also requires the notice to say whether the employer will arrange job help with the local workforce board, and to include information on CalFresh food help, its helpline (1-877-847-FOOD, which is 1-877-847-3663), and the BenefitsCal website (EDD).

Federal WARN covers fewer employers, generally those with 100 or more full time workers, with its own triggers (EDD comparison).

What if they did not warn us?

A covered employer that skips the notice owes each affected worker (Labor Code 1402):

• Back pay at your average rate over the last three years or your final rate, whichever is higher
• The value of lost benefits, including medical costs your health plan would have covered

That covers each day of the violation, up to 60 days, or half the number of days you worked there, whichever is less. Wages your employer paid you during that time, and some voluntary payments, reduce what it owes. The employer can also face a civil penalty of $500 per day (EDD).

What to do. EDD's chart lists the Labor Commissioner and the courts as enforcers of California WARN (EDD). Talk to a clinic or lawyer quickly. When many coworkers are affected, acting together is often stronger.

What should I ask for before the last day?

Doors can close fast. Do these while you still have access:

1. Ask in writing for your pay records and personnel file. Your employer must answer within 21 days for pay records and 30 days for the personnel file (Labor Code 226; Labor Code 1198.5). See How to get copies of your pay records and personnel file.
2. Photograph your last pay stubs and schedules.
3. Get the business's legal name, owner's name and address. You need these for any claim.
4. Ask who will pay your final check, and when.
5. Ask about health insurance. How long it lasts, and whether you can keep it.
6. Save coworkers' phone numbers. You may want to act together.
7. Ask for a letter confirming you were laid off, your dates and your job title.

What about my health insurance?

If you had health insurance through work, you may be able to keep the same plan by paying for it. Federal COBRA covers employers with 20 or more workers; Cal-COBRA covers employers with 2 to 19. You have 60 days after you get notice to sign up, and then 45 days to pay the first premium (Department of Managed Health Care). If the cost is too high, ask a clinic about other options for your family.

What if the business goes bankrupt or just disappears?

If your employer files for bankruptcy, your unpaid wages become a claim in the bankruptcy case. You must follow the bankruptcy court's process and file a claim by its deadline (Labor Commissioner, Collect Your Award). Federal law puts wages earned in the 180 days before the bankruptcy, or before the business stopped, ahead of many other debts, up to $17,150 per worker since April 1, 2025 (11 USC 507). That does not promise you will be paid in full.

If the owner just closes and leaves, you can still file a wage claim. You do not need the business to be open. Bring what you know about the owner and the business (How to File a Wage Claim).

If the business was sold, ask the new owner whether they are keeping workers. Grocery stores that change owners have special rules that protect workers for a time (Labor Code 2500 to 2517).

Can I get unemployment?

Usually, a layoff is the kind of job loss unemployment is for. Benefits depend on your work history and work authorization. See Unemployment after being fired or quitting for who qualifies and how status matters.

If you get severance under a company plan, EDD's guide says it generally does not reduce unemployment benefits (EDD benefit determination guide). Report all payments honestly on your claim.

Does my immigration status matter?

Your right to your earned wages does not depend on your status. The Labor Commissioner says it does not ask about immigration status and does not report it (Labor Commissioner). Unemployment has its own rules about work authorization; read the unemployment page before you apply.

What mistakes should I avoid?

• Leaving without your records. Request them before the last day.
• Signing a release to get your final check. Earned wages are owed without one (Labor Code 206.5).
• Waiting to see if the owner pays later. File a wage claim if your final pay is late.
• Missing the COBRA window. 60 days goes fast.
• Ignoring a bankruptcy notice. Bankruptcy deadlines are strict.

Who can help?

These are free public offices and nonprofit clinics. Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• Labor Commissioner: final pay and wage claims, with phone interpreters at 833-526-4636. How to file
• EDD: WARN questions at WARNNotice@edd.ca.gov. WARN page
• Legal Aid at Work, Workers' Rights Clinic: free and confidential for people within its income limits or age 60 and over. East Palo Alto line: (415) 404-9093. Clinic details
• Department of Managed Health Care Help Center: keeping your health plan, 1-888-466-2219.
• More local help: Free help with a work problem in the Bay Area

A layoff is not your fault. You earned that pay, and the law backs you. Gather your papers now, and lean on your coworkers and on free help.

Questions people ask

We were told the layoff is temporary. Am I still owed final pay? Ask your employer in writing whether your job has ended and when you will return. Talk to a clinic if you are not paid.

Only 20 of us were laid off. Does WARN apply? A mass layoff under California WARN means 50 or more within 30 days. A full closing of a covered worksite counts no matter how many lose their jobs.

The company says it is too broke to pay us. Wages are still owed. File a wage claim. If it files for bankruptcy, file a claim there too.

Can a clinic help a whole group of us? Ask. Many clinics can meet with several workers from the same job.

Is there a checklist I can print?