WARN ACT COMPLIANCE

WARN ACT COMPLIANCE and "Baby" WARN ACTS by State

Remembering the news regarding the abrupt closing of Republic Windows and Doors in Illinois, and the media nightmare that ensued drives this important reminder regarding the WARN ACT.

In Illinois, workers had been occupying the Republic Windows and Doors building since its abrupt closing Friday, December 5. They were protesting the loss of what they said is vacation and severance pay they've earned and the lack of notice about the closing. The federal WARN Act requires 60-day notice of a plant's closing.

The law does allow businesses to close without giving the required notice under certain circumstances, such as if another company that is the sole source of income suddenly goes out of business.

Do you really understand the WARN ACT and your responsibilities?

While the following is an overview of the Federal WARN ACT, many States including South Carolina have enacted Baby Warn ACT provisions. Recently, New Jersey joined the ranks of states that have adopted their own form of plant closing and mass layoff statutes to supplement the federal WARN Act provisions. These states include California, Connecticut, Hawaii, Illinois, Kansas, Maine, Massachusetts, Michigan, Minnesota, New Hampshire, Oregon, Rhode Island, South Carolina, Tennessee, and Wisconsin.

WARN ACT Overview

The Worker Adjustment and Retraining Notification Act (WARN) protects workers, their families, and communities by requiring most employers with 100 or more employees to provide notification 60 calendar days in advance of plant closings and mass layoffs.

Employee entitled to notice under WARN include managers and supervisors, as well as hourly and salaried workers. WARN requires that notice also be given to employees' representatives, the local chief elected official, and the state dislocated worker unit.

Advance notice gives workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs, and, if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market.
Generally, WARN covers employers with 100 or more employees, not counting those who have worked less than six months in the last 12 months and those who work an average of less than 20 hours a week.

Employees entitled to advance notice under WARN include managers and supervisors as well as hourly and salaried workers.

Regular federal, state, and local government entities that provide public services are not covered by WARN.

Worker Adjustment and Retraining Notification Act (WARN) - Who is Covered?

The Worker Adjustment and Retraining Notification Act (WARN) generally covers employers with 100 or more employees, not counting those who have worked less than six months in the last 12 months and those who work an average of less than 20 hours a week. Regular federal, state, and local government entities that provide public services are not covered. Employees entitled to notice under WARN include managers and supervisors as well as hourly and salaried workers.

Basic Provisions/Requirements

WARN protects workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs. Advance notice gives workers and their families some transition time to adjust to the prospective loss of employment, to seek and obtain other jobs and, if necessary, to enter skill training or retraining that will allow these workers to compete successfully in the job market. WARN also provides for notice to state dislocated worker units so that they can promptly offer dislocated worker assistance.

A covered plant closing occurs when a facility or operating unit is shut down for more than six months, or when 50 or more employees lose their jobs during any 30 day period at a single site of employment. A covered mass layoff occurs when a layoff of six months or longer affects either 500 or more workers or at least 33 percent of the employer's workforce when the layoff affects between 50 and 499 workers. The number of affected workers is the total number laid off during a 30 day (or in some cases 90 day) period.

WARN does not apply to closure of temporary facilities, or the completion of an activity when the workers were hired only for the duration of that activity. WARN also provides for less than 60 days notice when the layoffs resulted from closure of a faltering company, unforeseeable business circumstances, or a natural disaster.

Employee Rights

Workers or their representatives, and units of local government may bring individual or class action suits. U.S. district courts enforce WARN requirements. The Court may allow reasonable attorney's fees as part of any final judgment.

Compliance Assistance Available

For general information about WARN, a fact sheet and employer's guide (PDF) are available from the Employment and Training Administration's Web site.

Penalties and Sanctions

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. This may be reduced by the period of any notice that was given, and any voluntary payments that the employer made to the employee.

An employer who fails to provide the required notice to the unit of local government is subject to a civil penalty not to exceed $500 for each day of violation. The employer may avoid this penalty by satisfying the liability to each employee within three weeks after the closing or layoff.
Relation to State, Local, and Other Federal Laws

WARN does not preempt any other federal, state, or local law, or any employer/employee agreement that requires other notification or benefit. Rather, the rights provided by WARN supplement those provided by other federal, state, or local laws.

We sponsor free webinars or off-site workshops to review the WARN ACT and assist your company in the event of a reduction-in-force activity.To receive more information or schedule a WARN ACT Workshop, contact Karen Masullo toll-free at 866-214-5445 or write to km@willowsmarsh.com