The WARN Act is aimed at giving employees time to find new jobs or get retraining. Consult with your human resources adviser or employment attorney if you think you are affected.
Here are some basic details:
- In general, employers are covered by WARN if they have 100 or more employees, not counting employees who have worked less than six months in the last 12 months and not counting employees who work an average of less than 20 hours a week.
- Private, for-profit employers and private, not-for-profit employers are covered, as are public and quasi-public entities which operate in a commercial context and are separately organized from the regular government. (Regular federal, state, and local government entities that provide public services are not covered.)
- What triggers a notice? In the case of a plant closing, a covered employer must give notice if an employment site (or one or more facilities or operating units within it) will be shut down, and the shutdown will result in an employment loss for 50 or more employees during any 30-day period. (This does not include employees who have worked less than six months in the last 12 months or employees who work an average of less than 20 hours a week for that employer.) These latter groups, however, are entitled to notice.
- In the case of a mass layoff, a covered employer must give notice if a large number of employees are being let go in an event that does not result from a plant closing, but which results in an employment loss at the site during any 30-day period for 500 or more employees, or for 50 to 499 employees if they make up at least 33 percent of the employer's active workforce. (Again, this doesn't count employees who have worked less than six months in the last 12 months or work an average of less than 20 hours a week for that employer.) However, these employees are entitled to notice.
- Employees entitled to notice under WARN include hourly and salaried workers, as well as managerial and supervisory employees. Business partners are not included.
- You cannot stagger layoffs to avoid the law. Courts try to determine an employer's thinking when the layoffs occurred.
- The WARN notice must include the date of the layoffs, whether they are temporary or permanent, and a company contact. It's also a good idea to include information on eligibility for severance pay and to explain the reasons for the layoffs including how the company tried to avoid them.
- There are other rules involved in certain situations, such as the sale of a business. This article does not cover all facets of the law. For more information, click here to read a WARN fact sheet from the U.S. Department of Labor.
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