When it Comes to Layoffs, Proceed with Caution

HR professionals are familiar with the WARN Act, known formally as the Worker Adjustment and Retraining Notification Act which went into effect in 1989. It’s an easy one to remember since it requires employers to provide written advance notice in situations of qualified plant closings and other mass layoffs. Created to protect employees, their families, and communities by requiring that employers provide sixty calendar days advance notification, the lead time allows everyone involved to prepare for the transition and brace for potential impact.

The WARN Act is a federal act that targets employers with 100 or more employees. Failure to adhere to the WARN Act is costly; employers that violate it are liable for an amount equal to back pay and benefits for the period of the violation (up to 60 days) for every affected employee. Not to mention the possibility of individual or class action lawsuits.

Repeat after me: As an employer, it is your responsibility to understand your organization’s obligations…

Click here to get insights into select states mini-WARN Acts in the full article by Sarah Rodehorst.

Source: HRProfessionalsMagazine