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The Worker Adjustment and Retraining Notification Act (WARN) requires employers with 100 or more full-time employees to provide 60 days written advance notification of plant closings and mass layoffs to employees, bargaining unit(s), and state and local government officials.
A plant closing is defined as: (1) A single site of employment that is permanently or temporarily shut down; (2) the shutdown must result in an employment loss of 6 months or a 50% reduction in hours over a 6-month period; AND (3) the shutdown must impact 50 or more full-time employees during any 30-day period.
A mass layoff is defined as: a workforce reduction at a single employment site that impacts either: (1) At least 33% of full-time employees AND (2) At least 50 full-time employees; OR (3) at least 500 employees.
Notice must be in writing and provided 60 days in advance to employees (mailed to their last known address or enclosed with their paycheck); the employees' bargaining unit, the state dislocated worker unit and the chief elected official of the governmental body where the plant closing or layoff will occur. Certain exemptions to the WARN act may be available in limited circumstances.
Penalties for non-compliance: Employers are liable for back pay and lost benefits, including medical expenses which would have otherwise been paid, for up to 60 days, as well as attorneys' fees. Class action suits are specifically allowed but punitive damages will not be awarded.
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