The U.S. Bureau of Labor Statistics reported 8.5 million jobs lost due to companies closing their doors for the second quarter of 2022. Receiving news of a job loss due to a company closing can be devastating for workers.
The Worker Adjustment and Retraining Notification Act stands as a shield for employees during such times. It provides them with essential protections.
1. Advance notice requirement
The WARN Act requires employers to provide advance notice of at least 60 days before a plant closing or mass layoff. This advance notice is not just a courtesy. It is a legal right that allows employees time to prepare for the transition, explore new job opportunities and make informed decisions about their futures.
2. Compensation for noncompliance
This legislation also entitles employees to compensation if their employers are not compliant. For not warning employees, employers may have to pay wages and benefits to them for the duration of the notice period. This compensation can be helpful as employees navigate the financial challenges that often accompany unexpected job loss.
3. Applicable to employers with 100 employees
The act does cover large corporations but also smaller businesses as long as they have at least 100 employees. The number of employees may also influence the notice period. However, the fundamental rights under the law are applicable across various company sizes.
Employees should be aware of their rights under the WARN Act. It provides a sense of empowerment during times of uncertainty and ensures fairness in how a company deals with layoffs or closings in terms of its employees.