When planning a layoff, make sure you check both federal and state laws to ensure compliance with WARN. New York State recently passed its own WARN Act, and may other states have done the same. New York’s WARN Act, like many other states, is far more expansive than the Federal WARN Act. So before you terminate, take the time to review both the Federal Act and the laws in your state so you don’t mistakenly violate any labor laws.
Federal WARN
“WARN” is the acronym for Worker Adjustment and Retraining Notification Act. The Federal WARN Act took effect in 1989 and was enacted to offer protection to workers, their families and communities by requiring employers to provide notice 60 days in advance of covered plant closings and covered mass layoffs.
Employers with 100 or more employees are covered by WARN. Employees who have worked less than 6 months in the last 12, and employees who work an average of less than 20 hours per week are not counted towards the 100 employee minimum.
Notice triggers are plant closings and mass layoffs defined as follows:
Plant Closing: Notice must be given if an employment site (or one or more facilities or operating units within an employment site) will be shut down, and the shutdown will result in an “employment loss” for 50 or more employees during any 30-day period.
Mass Layoff: Notice must be given if there is a layoff that doesn’t result from a plant closing, but results in an “employment loss” at the employment site during any 30-day period for 500 or more employees, or for 50 or more employees if they make up at least one-third of the employer’s active workforce.
Notice must also be given if neither of these threshold requirements is met within a 30-day period, but the number of employment losses for two or more groups of workers cumulatively reaches the threshold level during any 90-day period. Notice requirements may also apply in the event of the sale of part or all of a business.
“Employment Loss” is defined as an employment termination (other than discharge for cause, voluntary departure or retirement); a layoff exceeding six months; or a reduction in hours of more than 50% in each month of any 6-month period.
There are certain exceptions and exemptions that should be reviewed in detail. Additionally, there are specific circumstances where multiple work locations may be considered a single employment site. The Department of Labor Fact Sheet about the WARN Act includes more detailed information and can be viewed here: WARN Fact Sheet.
New York WARN Act Effective February 1, 2009
New York State passed its own version of WARN that will take effect February 1, 2009. Its provisions are more expansive than the Federal WARN Act in terms of covered employers, events that trigger notice, and required notice period.
The main provisions are as follows:
Applies to employers with 50 or more full-time employees
Notice triggers are defined as follows:
-
Mass layoff that results in employment loss for 25 full-time employees who represent at least one-third of the workforce
-
Plant closing that results in employment loss for 25 employees during any 30-day period
-
Notice must be provided at least 90 days in advance.
Penalties for failure to comply with the provisions of the WARN Act, either Federal or state, include back pay and benefits for up to 60 days and a civil penalty of up to $500 for each day of violation.
There are many significant differences between Federal WARN and state WARN statutes, making it even more essential for employers contemplating a significant reduction of staff, plant closure or relocation of operations to seek human resources guidance. Instant HR Solutions is available to help you steer clear of labor law violations in these kinds of situations.
