Layoffs and The Warn Act
What is the WARN Act?
California Worker Adjustment and Retraining Notification Act Act (WARN)imposes requirements for layoffs by employers with 75 or more employees. The law requires that when a company lays off 50 or more employees during any 30-day period it must generally provide at least 60 calendar days advance notice of the lay off to each affected employee.
The notice requirement also applies when a company ceases all or a substantial portion of its operations, such as when it goes bankrupt. The 60-day notice period is intended to provide employees with the chance to find other employment. An employee is entitled to back pay for each day that the act is violated.
The federal WARN Act also provides protections for laid off employees, but it generally is not as pro-employee as the California version. For instance, the federal act only applies to employers with 100 or more employees and requires that the laid off workers constitute a certain percentage of the employer's entire work force.
What are some examples of WARN Act violations?
Below are some common examples of WARN Act violations:
|» A glass manufacturer with 1,000 employees decides to layoff 120 employees in a particular department because business is slow. Instead of providing the required 60 days notice to the 120 employees, it only provides 10 days notice. Under these circumstances, the employer would be liable to pay 50 days pay to each of the 120 employees, plus other fees.||
» A retail store with 90 employees decides to declare bankruptcy. It does not provide notice to employees that it is ceasing operations until two days before it closes. The store would be liable under the California WARN Act for 58 days of pay to each of the 90 employees.
How can an attorney help you?
If you are the victim of a mass layoff you may be entitled to additional compensation for California WARN Act violations. An attorney can work through the complex requirements of the WARN Act to maximize your termination compensation.
Our firm is well-versed in gathering initial facts, advising clients on their alternatives, preparing a complaint if necessary, and litigating a WARN act case until resolution. Remember: no recovery, no fees. We only get paid if we obtain a positive recovery in your case.
We can review the facts of your case and give you an honest evaluation of any layoff or WARN Act issue you are facing.
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