The WARN Act in Georgia
This is your warning.
We’ve written about the federal WARN Act before (here, here, and here), but we want to take a deeper dive into how WARN applies to Georgia employers. Though several states have implemented stricter regulations (referred to as mini-WARNs), Georgia adheres to the provisions created by the federal WARN Act.
What is the WARN Act?
First, as a refresher, the WARN Act is a U.S. labor law that requires employers to give a 60-day notice in certain situations of employee layoffs and plant closings. It was created to give employees and local communities advance notice of the financial impact.
Failure to comply with WARN can result in costly penalties — and even class-action lawsuits — for employers in Georgia.
Who is covered by the WARN Act?
The federal WARN Act applies to a business entity that employs:
100 or more full-time employees
100 or more employees who work a combined total of at least 4,000 hours per week (excluding overtime)
What is a mass layoff as defined by the WARN Act?
A Mass Layoff is a reduction in force that:
Is not a plant closing
Results in the loss of jobs for at least 33% of full-time employees at a single workplace
Results in the loss of jobs for at least 50 full-time employees at a single workplace
When does the WARN Act apply to Georgia employers?
Plant Closing: Permanently or temporarily closing a facility or operating unit that employs 50 or more full-time employees at a single location within a 30-day period.
Mass Layoff: Laying off 500 or more full-time employees at a single location within a 30-day period.
Significant Layoff: Laying off 50-499 full-time employees at a single location, which constitutes 33% or more of the employer's total full-time workforce at that location.
Extended Temporary Layoff: Announcing a temporary layoff of less than 6 months that meets the plant closing or mass layoff criteria and later extending the layoff beyond 6 months.
Reduced Work Hours: Reducing the work hours of 50 or more employees by 50% or more for each month in a 6-month period.
It's important to note that a plant closing or mass layoff does not need to be permanent to trigger WARN.
What are the penalties for not complying with WARN Act?
Failure to comply with the WARN Act requirements can result in significant penalties.
Potential Penalties for WARN Act Violations
Back Pay: Employers may be required to pay back wages to affected employees for the period between the date they should have received notice and the date of the layoff.
Benefits: Employers may also be obligated to reinstate employee benefits that were lost due to the lack of notice.
Civil Penalties: The Department of Labor can impose civil penalties on employers who violate the WARN Act. These penalties can be substantial, and the amount may vary depending on the circumstances of the violation.
Private Lawsuits: In some cases, affected employees may be able to file private lawsuits against their employers for WARN Act violations. These lawsuits can result in additional damages, including compensatory and punitive damages.
What are the key factors affecting the severity of a WARN Act penalty in Georgia?
Nature of the Violation: The severity of the violation can influence the amount of penalties imposed. For example, willful violations may result in higher penalties than unintentional violations.
Size of the Employer: Larger employers may face more significant penalties than smaller employers.
History of Compliance: Employers with a history of WARN Act violations may be subject to harsher penalties.
Employers must understand and comply with the WARN Act to avoid costly penalties and legal disputes. Employers can help mitigate the negative impact on affected employees and maintain a positive reputation by providing timely notice of plant closings or mass layoffs.
What should Georgia employers include in a WARN Notice to employees?
Georgia employers must provide at least 60 days' notice to individual employees (or their representatives) before a plant closing or mass layoff.
WARN notices should be written in a clear and understandable manner. They must include:
A statement indicating whether the job loss is permanent or temporary.
The expected date of the layoff or plant closing.
Information about bumping rights, if applicable.
The name and contact information of a company official for further questions.
Related Articles
Sources:
The code of Federal Regulations - Worker Adjustment and Retraining Notification
DOL - Employer’s Guide to Advance Notice of Closings and Layoffs
Technical College System of Georgia’s Office of Workforce Development