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Agenda. OverviewEmployersTriggers ThresholdsWho Must Receive NoticeContent of NoticePenaltiesExemptions and ExceptionsPros and ConsWARN NoticesExamplesRecommendations . WARN Overview. Enacted on August 4, 1988Became effective February 4, 1989Provides protection to employees, their families, and communitiesRequires employers to give affected employees written notice at least 60 days in advance of any plant closing or mass layoff.
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1. Worker Adjustment and Retraining Notification Act Jenny Gurwell
MGMT 610
March 5, 2003
3. WARN Overview Enacted on August 4, 1988
Became effective February 4, 1989
Provides protection to employees, their families, and communities
Requires employers to give affected employees written notice at least 60 days in advance of any plant closing or mass layoff
4. Overview, cont. Advanced notice provides transition time:
Loss of employment
Alternative jobs
retraining
5. Employers Industrial and nonindustrial employers
Private, for-profit employers
Private, nonprofit employers
Public and quasi-public entities
Exemptions
Federal, State, and local government entities which provide public services
6. Triggers for Notice Plant Closing
Mass Layoff
Employment Loss
7. Thresholds Employers must have 100 or more employees
The closure will result in an employment loss for 50 or more employees
Mass layoff will result in an employment loss at the facility for 500 or more employees
Caution – 90 day “look back/look forward”
8. Who Must Receive Notice Representative(s) of affected employees
State Dislocated Worker Unit
Chief elected official of the unit of local government in the area the site is located
Employees
Hourly and salaried workers
Managerial and supervisory employees
Exception: Business partners
9. Content of Notice Name and address of employment site
Name and telephone number of company official
Statement permanent or temporary
Expected date of separation
Job titles of affected positions
Number of affected employees
Bumping rights
Name and address of CEO of each union
10. Penalties Up to 60 days back pay and benefits
Fine - $500.00 per day
Enforcement – US district courts
11. Exemptions Plant closing or layoff at a temporary facility
Closing or layoff constitutes a strike and/or lockout
Closing or layoff result of the completion of a particular project
12. Exceptions Faltering company
Unforeseeable business circumstances
Natural disasters
13. Pros and Cons Pros:
Protects the employee, their families, and the communities
Cons:
Complex, confusing, and fact-specific
14. WARN Notices
15. Examples Charter Behavioral Health Systems
Michigan Industrial Holdings, Inc.
16. Recommendations Consider each worker displacing event in 2 separate steps:
Qualifying
Notifying