(a) An agency undergoing layoff shall provide information to the Department to allow the Department to determine whether the agency is required by federal law to adjust the order of layoff, or whether the agency is mandated to conduct a seniority-based layoff, unless a seniority-based layoff would conflict with the provisions of a memorandum of understanding reached pursuant to Government Code section 3512 et seq. (The Ralph C. Dills Act).

(b) If the agency determines that it is subject to the provisions of Government Code section 19798, the agency shall provide to the Department evidence that it served upon the affected employee(s) and respective employee organization(s) notice of the agency's determination under subsection (a)(1).

(c) If the Department determines that the agency has demonstrated that it is not required by any federal authority to adjust the order of layoff and is not aware of any information that shows that the failure to adjust the order of layoff in accordance with Government Code section 19798 would result in ineligibility for a federal program and a loss of federal funds, the layoff review process shall end and the Department shall authorize the agency to proceed with a seniority-based layoff of employees in the class(es) of layoff, unless a seniority-based layoff would conflict with the provisions of a memorandum of understanding reached pursuant to Government Code section 3512 et seq.

(d) If the Department determines pursuant to subsection (a)(1) that the agency is required by federal law to adjust the order of layoff or that the failure to adjust the order of layoff in accordance with Government Code section 19798 would result in ineligibility for a federal program and a loss of federal funds, and that therefore an adjustment of the order of layoff may be necessary, the agency shall provide the following additional information to the Department:

(e) Using the information provided by the agency pursuant to subsections (d)(1), (2) and (3), the Department shall conduct a data analysis of the composition of the affected labor force by comparing the most relevant labor force representation with the current representation and post-layoff representation. If the analysis establishes that the labor force representation in the affected workforce after layoff would be either substantially the same as it was before such layoff, or equal to its relevant labor force percentage, the Department may authorize the agency to proceed with a seniority-based layoff of employees in the class(es) of layoff.

(f) If the analysis conducted in subsection (e) establishes that the labor force representation after layoff will not be substantially the same as it was before layoff, the Department shall conduct an analysis of any evidence of the existence of discrimination in past hiring practices. This analysis shall include, but is not limited to, a review of job-related hiring and recruiting practices; bottom-line hiring and examination data; discrimination or merit issue complaints and appeals; or any other relevant and factual information. If this analysis establishes the possibility of past discriminatory hiring practices in the class(es) of layoff, the Department shall schedule a hearing as provided in section 599.850 of these regulations.

(g) At any time during the Department's review process, the Department may authorize a seniority-based layoff of part of the affected workforce in order to retain a sufficient number of employees with the highest seniority scores in the class(es) of layoff so as to maintain the same representation in the affected class(es) as existed prior to the layoff. Such retention shall not alter the order of seniority established for the current layoff.