Question

What is the WARN Act? Who and what does it aim to protect? Would it apply in the following situation:

Modworld, a producer of mid-century modern furniture reproductions, is considering a consolidation of manufacturing sites to cut costs. It currently has 5 manufacturing facilities. Modworld is considering closing the two smallest facilities and ramping up production in the three larger facilities. The downside of this plan is that lots of employees will be let go. What do you need to know about each facility to determine whether the WARN Act requires 60-days notice of the pending foreclosure?

Answer 1

The WARN Act (1988) abbreviated as Workers Adjustment and Retraining Notification Act is a labor law of the United States that emphasizes prior notification to the employees by the employers with more than 100 employees in case of any mass layoffs or plant closings. It protects the employees which include the managers, supervisors, hourly waged workers, and salaried workers in order to get notified of the plant lay off or closure in such a way that it minimizes the impact in their families and lives.
A 60-day notice is exempted if it addresses the following factors:

• If the company has sought capital or business and the notification would ruin the opportunity of it

• If there are any unforeseeable business circumstances that have happened beyond the employer’s control.

• If there are any natural disasters like earthquake, storm, etc.,

The notification needs to be given to

• The employee’s representatives (labor union)

• Local chief elected officer (Mayor)

• Chief elected officer in state dislocated worker unit.

The notice must include the following details:

• Name and address of the plant that is meant for closure

• The list of employees who are terminated

• The date of termination

• A statement indicating whether the closure is temporary or permanent