Relocation of Call Centers in California

California’s Labor Code, in Division 2, Part 4, Chapter 4, deals with the “relocation of call centers.” Article 2 was added in 2022 by Chapter 752. Section 1409 provides that Article 2 applies to an employer’s relocation of a call center. In addition, Section 1409 defines the terms “call center,” “call center employer,” and “relocation of a call center.”

Labor Code Section 1410 prohibits a call center employer from ordering a relocation of its call center, or one or more of its facilities or operating units within a call center, unless notice of the relocation is provided. This notice must include “This notice is for the relocation of a call center” at the top of the notice.

In addition, the Employment Development Department (EDD) is required to compile and publish semiannually, on its internet website, a list of call center employers operating a call center that provided this notice. Additionally, this list must include elements required by the federal Worker Adjustment and Retraining Notification Act. The EDD and local workforce development boards are required to provide workforce services to call center employers and their call center employees who are laid off.

Section 1410.5 requires a violation of the notice requirements to be enforced through the provisions and remedies provided by law. Section 1411 provides that a call center employer that appears on the EDD list, or who should have appeared on the list but did not provide notice as specified, is ineligible to be awarded or have renewed any direct or indirect state grants or state-guaranteed loans to that call center employer for five years after the date that the list is published. Moreover, that call center employer is ineligible to claim a tax credit for five taxable years beginning on and after the date that the list is published. However, these provisions are subject to waiver by an appropriate agency.

Section 1412 provides that this article is not to be construed to permit withholding or denial of payments, compensation, or benefits under any other state law, including state unemployment compensation, disability payments, or worker retraining or readjustment funds, to workers employed by call center employers that relocate to a foreign country. Section 1413 authorizes the Labor Commissioner and EDD to adopt regulations.