Tech Industry Layoff Trend Continues as Square Parent Company Cuts Staff, California Employment Attorney Provides Guidance
(PRUnderground) April 2nd, 2025
As Jack Dorsey’s Block, Inc. announces the termination of 931 employees—approximately 8% of its workforce—Oakland employment attorney Vincent Tong of TONG LAW is providing essential guidance for all workers facing sudden corporate downsizing. The financial technology company behind Square, Cash App, and Afterpay disclosed layoffs affecting employees nationwide, including nearly 70 remote Missouri workers and 240 California-based staff.
The Missouri-born tech mogul communicated the cuts through an all-lowercase email, categorizing terminations under “strategy,” “performance,” and “hierarchy.” This latest round of tech industry layoffs highlights the continuing volatility in the sector and raises important legal questions about employee rights during corporate restructuring.
“The Block layoffs exemplify a troubling pattern we’re seeing across the tech industry and beyond,” said Vincent Tong, founder of TONG LAW in Oakland. “While companies certainly have the right to make strategic business decisions, employees throughout California and nationwide need to understand their legal protections during these transitions.”
Tong emphasizes that regardless of the employer or industry, workers facing layoffs should be aware of five key legal rights that could significantly impact their financial security:
Five Critical Rights All Employees Should Know When Facing Layoffs
- Advance Notice Requirements
Federal and state WARN Acts require many employers to provide advance written notice before mass layoffs. Requirements vary by state, with California offering stronger protections than federal law.
“Whether you work for a tech giant like Block or a smaller company, verify if your employer is covered by WARN Act provisions,” advised Tong. “Failure to provide legally required notice can entitle affected employees to additional compensation of up to 60 days of pay and benefits.”
- Severance Agreement Evaluation and Negotiation
Companies frequently offer severance packages that require employees to waive legal claims. Before signing, employees should understand what rights they’re giving up and what compensation they’re receiving.
“We often see employees sign severance agreements without realizing they may be entitled to more than what’s initially offered,” Tong explained. “The terms of these agreements are often negotiable, especially regarding severance amount, extended benefits, and other relevant terms.”
- Discrimination Protections During Downsizing
Mass layoffs must comply with anti-discrimination laws. Employers cannot use downsizing as an opportunity to target protected groups.
“If layoff selections appear to disproportionately impact employees based on age, race, gender, disability, or other protected characteristics, this may warrant investigation,” Tong noted. “Statistical patterns in who was selected for termination can sometimes reveal discriminatory practices that violate state and federal laws.”
- Final Pay and Accrued Benefit Requirements
State laws govern when final paychecks must be issued and what must be included. California law is particularly strict, requiring immediate payment upon termination.
“Regardless of company size or industry, employers must comply with final pay requirements, including immediate payment of all earned wages and accrued, unused paid time off in California,” said Tong. “Many employees don’t realize that delays in receiving these payments can result in significant waiting time penalties.”
- Health Insurance Continuation Options
All laid-off employees who had employer-provided health insurance should receive information about COBRA continuation coverage.
“Understanding your health insurance options post-employment is crucial,” Tong advised. “While COBRA allows you to maintain your existing coverage, there may be more affordable alternatives through state exchanges or other programs depending on your circumstances.”
California Workers Have Additional Protections
Tong emphasizes that California employees have significantly stronger legal protections than those in many other states.
“California’s employment laws are among the most employee-protective in the nation,” said Tong. “Workers laid off in California should be particularly vigilant about protecting their rights, as they may be entitled to significantly greater benefits and protections than employees in other states.”
These enhanced safeguards include:
Enhanced WARN Act Provisions
California’s WARN Act applies to more employers than the federal version, covering companies with as few as 75 employees (versus 100 federally) and requiring notice for layoffs affecting as few as 50 employees. Companies failing to provide the required 60-day notice may be liable for back pay and benefits for the full notice period.
Broader Anti-Discrimination Protections
California’s Fair Employment and Housing Act (FEHA) provides broader anti-discrimination protections than federal law, covering more protected categories and applying to employers with as few as five employees.
Cal-COBRA Extension
California offers up to 18 additional months of COBRA coverage beyond the federal 18-month limit, potentially allowing terminated employees to maintain their existing health insurance for up to 36 months.
“During economic uncertainty and corporate restructuring, employees need to be particularly vigilant about protecting their legal rights,” Tong concluded. “Whether you’re affected by the Block layoffs or facing termination from any employer, understanding your rights can make a significant difference in your financial recovery and future employment prospects.”
For more information or to schedule a consultation, visit TONG LAW’s website at www.tong-law.com or call 855-TONG-LAW.
Contact Information:
Vincent Tong, Esq.
Founding Attorney, TONG LAW
Phone: 855-TONG-LAW
Website: www.tong-law.com
Office Locations:
Oakland: 1999 Harrison Street, 18th Floor, Oakland, CA 94612
Sacramento: 836 57th St, Suite #610, Sacramento, CA 95819
About TONG LAW – Employment and Business Attorney
TONG LAW is a law firm in Oakland and Sacramento, California, dedicated to serving both employees and businesses. The firm represents employees in employment law matters involving workplace discrimination, harassment, wrongful termination, and wage and hour violations.
Additionally, TONG LAW offers comprehensive business law services, assisting companies with contract negotiations, corporate governance, and compliance matters. Led by Vincent Tong, TONG LAW is committed to providing personalized, high-quality legal representation to individuals and businesses throughout Northern California.
Contact Information
TONG LAW, California Employment Law Attorneys
1999 Harrison St 18th floor
Oakland, CA 94612
836 57th St, Suite #610,
Sacramento, CA 95819
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Original Press Release.
