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HomeLabor CodeDiv. 2Pt. 4Ch. 4§ 1403 Employer Civil Penalties

§ 1403 Employer Civil Penalties

Labor Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1403 Employer Civil Penalties

This law says employers must warn workers before big layoffs or closing a workplace. If they don’t, they can be fined up to $500 for each day they break the rule.

Key Takeaways

  • •Bosses must give notice before big layoffs or shutting down.
  • •If they don’t, they can be fined $500 per day.
  • •They can avoid the fine if they pay workers what they owe within 3 weeks.

Example

A factory suddenly closes without telling its 200 workers ahead of time.

The boss didn’t give the required warning, so they could be fined $500 for every day they didn’t tell the workers. But if the boss pays all the workers what they’re owed within 3 weeks, they won’t get fined.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1403 Employer Civil Penalties

An employer who fails to give notice as required by paragraph (2) of subdivision (a) of Section 1401 is subject to a civil penalty of not more than five hundred dollars ($500) for each day of the employer’s violation. The employer is not subject to a civil penalty under this section, however, if the employer pays to all applicable employees the amounts for which the employer is liable under Section 1402 within three weeks from the date the employer orders the mass layoff, relocation, or termination. (Added by Stats. 2002, Ch. 780, Sec. 1. Effective January 1, 2003.)

Last verified: January 9, 2026

Key Terms

civil penaltymass layoffrelocationterminationSection 1401Section 1402

Related Statutes

  • § 1401 Employer Notice Requirements
  • § 1402 Employer Liability Notice Violation
  • § 1400.5 Definitions For Layoffs
  • § 1402.5 Notice Exception Seeking Capital
  • § 1410 Call Center Relocation Notice

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Labor Code. Section 1403.
View Official Source