One of the questions that our employment lawyers at Sherman Law Corporation often are asked is what documents must be given to terminated employees in order to make sure that the business is compliant with both Federal and California law?
Based on our decades of experience with California employment law, everything you need to know about termination documents in California.
Termination Notice
California is an at-will employment state. This means that you can terminate an employee at any time without giving them written notice of termination.
However, this only applies if there is no existing contract that states otherwise. If there is a clause in the employment contract that specifies a notice of termination must be given or that a certain period of notice must be given then the contract must be adhered to.
Whenever you are dealing with a situation where you must terminate an employee, it’s important to discuss your options with a dedicated California employment lawyer like our team at Sherman Law Corporation. That way you can be sure that your termination of that employee will stand up to any legal challenge that the employee might try to bring.
Federal Requirements
There are separate state and Federal requirements for termination. When you terminate an employee, in order to be compliant with Federal law you have to follow the following standards:
- For employers with 20 or more employees, a Consolidated Omnibus Budget Reconciliation Act (COBRA) notice and election form needs to be provided to employees who are participating in the employer’s group health plan the day before the termination and to any of the terminating employee’s dependents on the plan.
- If termination is due to a layoff or position elimination is covered under the WARN Act for employers of 100 or more employees, notices need to be sent out 60 days prior to termination.
- The IRS requires notices of terminating employees within certain time frames to advise them of their rights to retirement benefits.
California Requirements
The California state rules for termination are a little bit different.
In order to be compliant with California law when it comes to employee termination, you must follow all of these regulations and provide the following documents:
- The California Employment Development Department (EDD) requires employers to provide their unemployment benefits pamphlet, For Your Benefit, DE 2320, to all discharged or laid off employees no later than the effective date of the discharge or layoff.
- California Unemployment Insurance Code 1089 requires employers to give a written Notice to Employee as to Change in Relationship form to all discharged or laid off employees immediately upon termination. No written notice is required if it is a voluntary quit, promotion or demotion, change in work assignment or location (some changes in location require a WARN notice), or if work stopped due to a trade dispute.
- The Department of Health Care Services requires employers with 20 or more employees to provide the Health Insurance Premium Payment (HIPP) notice, DHCS 9061, to certain employees covered under the program.
- Employers must notify any covered, terminated employees of their Cal-COBRA continuation rights. Cal-COBRA must be offered to both terminated employees of small employers (2-19 employees) and terminated employees covered under federal COBRA when their 18 months of federal COBRA coverage expires.
- California Labor Code Section 2808(b) requires employers to provide to employees, upon termination, notification of all continuation, disability extension, and conversion coverage options under any employer-sponsored coverage for which the employee may remain eligible after employment terminates.
- The California Worker Adjustment and Retraining Notification Act requires employers of 75 or more employees to give affected employees at least 60 days advance written notice of any plant closing or mass layoff.
That may seem like a lot of documents to terminate an employee, but Lisa Sherman can walk you through the process of termination and ensure that you have included all of the necessary termination documents.
Contact Sherman Law Corporation today
It’s never easy to terminate an employee, but unfortunately, it can be necessary. To protect yourself from any possible legal challenges or civil litigation, it’s important to follow both Federal and California law. Talk with one of the employment law attorneys at Sherman Law Corporation today to make sure that your business is protected from any civil litigation when you have to terminate an employee.
