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Checklist for Employee Separations in California

by | Mar 21, 2023 | Firm News

Compared to most states, California requires added documentation for an employee separation. Employers found to be out of compliance with these requirements can face litigation or administrative penalties. In addition to other requirements under federal law, California law requires the following for any termination, including resignations:

  • The employer must provide the employee with Notice to Employee of Change in Relationship. A form can be found here.
  • The employer must provide the employee with a copy of the unemployment DE 2320 Pamphlet.
  • The employer must notify the employee of any continuation, disability extension, or conversion coverage options under any employer-sponsored plan for which the employee may remain eligible after the termination of their employment pursuant to California Labor Code Section 2808(b). There is no set form for this notification.
  • Employers with 2 or more employees must notify the employee of their Cal-COBRA Continuation Rights, which allows an employee to elect continuation of their group health plan upon termination. This is separate from the federal requirements of COBRA. More information on Cal-COBRA and its interaction with COBRA can be found here.
  • The employer must provide the employee with a Health Insurance Premium Payment (HIPP) notice—or DHCS 9061. This notice can be found here.
  • If the employee is terminated involuntarily or gives at least 72 hours’ notice of their intent to quit, the employer must provide the employee with their final paycheck by the final day of their employment. This must include all compensation, including bonuses, commissions, and accrued vacation. If the employee does not give at least 72 hours’ notice before quitting, the employer has 72 hours from the notice to provide their final pay (including all bonuses, commissions, and accrued vacation).

As of January 1, 2022, California law permits employers to distribute required notice to employees by email.