The Worker Adjustment and Retraining Notification Act of the "WARN Act" is a US labor law which protects employees, their families, and communities by requiring most employers with or more employees to provide 60 calendar-day advance notification of plant closings and mass layoffs of employees, as defined in the Act.
Inthere were about 2, mass layoffs and plant closures which were subject to WARN advance notice requirements and which affected aboutemployees.
Employees entitled to notice under the WARN Act include managers and supervisors, hourly wage, and salaried workers. The advance notice is intended to give workers and their families transition time to adjust to the prospective loss of employment, to seek and to obtain other employment, and, if necessary, to enter skill training or retraining programs that will allow these workers to successfully compete in the job market.
Generally, the WARN Act covers employers with or more employees, not counting those who have worked fewer than six months in the last twelve-month work period, or those who work an average of less than twenty hours a week.
Employees entitled to advance notice under the WARN Act include managers, supervisors, hourly wage, and salaried workers.
There are three exceptions to the full day notice requirement; however, the notice must be provided as soon as practicable, even when these exceptions apply, and the employer must provide a statement of the reason for shortening the notice requirement in addition to fulfilling other notice information requirements.
These three exceptions are:.
Exceptions are often claimed by employers in bankruptcy cases, and bankruptcy courts must often determine how the WARN Act applies. Generally, the WARN Act's requirements and penalties apply when an employer continues to run the business in bankruptcy, rather than close the business, and also when an employer plans a closing or mass layoff before filing bankruptcy.
An employer who violates the WARN provisions is liable to each employee for an amount equal to back pay and benefits for the period of the violation, up to 60 days. The liability may be reduced by the period of any notice that was given and any voluntary payments that the employer made to the employee, sometimes referred to as "pay in lieu of notice. Workers, representatives of employees, and units of local government may bring individual or class action suits.
The Court may allow reasonable attorney's fees as part of any final judgment. In addition to the WARN Act, which is a federal law, several states have enacted similar acts that require advance notice or severance payments to employees facing job loss from a mass layoff or plant closing.
For example, California requires advance notice for plant closings, layoffs, and relocations of 50 or more employees regardless of percentage of workforce, that is, without the federal "one-third" rule for mass layoffs of fewer What is a warn notice employees.
Also, the California law applies to employers with 75 or more employees, counting both full-time and part-time employees. A number of states have laws that create ancillary duties at the time of job layoffs, but which generally do not seek to mandate advance notice or severance payments to workers in a manner similar to the federal WARN Act, other states' statutes or the laws found in Canadian or European jurisdictions.
Maryland, Missouri, Oklahoma, and Pennsylvania have statutes that require filing certain disclosure statements when businesses are the takeover targets of other corporations or when businesses are being dissolved.
The statements generally require disclosure of plans to close facilities in the state. Connecticut requires employers to maintain health insurance for a certain period of time following the relocation of operations. Kansas requires the notification of state officials when businesses plan to close facilities or significantly cut production in select industries.