COVID-19 and Other Laws
Federal WARN Act
Requirements of the Law The federal Worker Adjustment and Retraining Notification (WARN) Act applies to employers with 100 or more employees. The act indicates that an employer must provide at least 60 days written notice of a plant closing or mass layoff. Importantly, employees must be paid during the 60-day notice period, which often results in payment of wages for the 60 days’ notice period as part of the layoff package in lieu of actual notice.
Trigger Criteria The WARN Act can be triggered by several business situations.
• Plant Closing: 50 or more employees at a single site of employment that results from shutting down a site or an operating unit, division, department or other functional portion thereof • Mass Layoff: At least 50 employees and 33% of the employees at a specific site OR at least 500 employees regardless of the percentage
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