Saturday, November 22, 2008

Worker Adjustment and Retraining Notification Act (WARN) for Employees

More of us need to be aware of what to expect if we are to be layed off. Or our plant is going to be closed. The Worker Adjustment and Retraining Notification Act (WARN) applies to employers with 100 or more employees. The purpose of WARN is "to protects workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and mass layoffs".

There is an employee guide here.

WARN applies when an employer:
• Closes a facility or discontinues an operating unit (see glossary) permanently
or temporarily, affecting at least 50 employees
• Lays off 500 or more workers (not counting part-time workers) at a single
site of employment during a 30-day period
• Announces a temporary layoff of less than 6 months that meets either
of the two criteria above and then decides to extend the layoff for
more than 6 months
• Reduces the hours of work for 50 or more workers by 50% or more for
each month in any 6-month period. Thus, a plant closing or mass layoff
need not be permanent to trigger WARN

The Department of Labor has a fact sheet for employers here.

What happens if an employer fails to give the proper notice?



An employer who violates WARN is liable to each affected employee for an amount
equal to back pay and benefits for the period of violation, up to 60 days. This
liability may be reduced by any wages the employer pays over the notice period.
WARN liability may also be reduced by any voluntary and unconditional payment
not required by a legal obligation.
An employer who fails to provide notice as required to a unit of local government is subject to a civil penalty not to exceed $500 for each day of violation. The penalty may be avoided if the employer satisfies its liability to each affected employee within three weeks after the closing. In any suit, the court, in its discretion, may allow the
prevailing party a reasonable attorney's fee as part of the costs.
  • WARN is enforced through the U.S. District Courts, as provided in section 5 of the Act.
  • Workers, their representatives, and units of local government may bring individual or class action suits against employers believed to be in violation of the Act.
  • The U.S. Department of Labor has no authority or legal standing in any enforcement action and cannot provide specific binding or authoritative advice or guidance about individual situations.
  • The Department provides assistance in understanding the law and regulations to individuals, firms, and communities.

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