Plant Closings And Mass Layoffs
In 1988, the federal government passed the Worker Adjustment and Retraining Act (WARN). This act protects workers and their families by requiring employers to provide notice 60 days in advance of a plant closing or mass layoff.
Who is covered by WARN?
WARN generally covers employers with 100 or more employees. All employees are entitled to notice, including managers and supervisors as well as hourly and salaried workers.
What constitutes a "plant closing"?
A covered plant closing occurs when a facility or operation is closed down and the shutdown results in a loss of employment for 50 or more employees during any 30-day period.
What is a "mass layoff"?
A mass layoff is defined as an employment loss at the employment site during any 30-day period for 500 or more employees, or 33 percent of the workforce, whichever is larger.
SIDEBAR: The layoff needs to be at one site, not the company as a whole.
Who must receive notice?
If a union represents the employees, the union must be notified of the plant closing or the mass layoff. If unrepresented, any worker who may expect to lose her job needs to be notified.
Are there specific requirements of what has to be in the notice?
The notice needs to be written in language easy to understand and must contain the following elements:
- A statement as to whether the planned action is expected to be permanent or temporary.
- The expected date when the plant closing or mass layoff will begin and the expected date the individual will be separated.
- An indication if seniority (bumping) rights exist.
- The name and telephone number of a company official to contact for further information.
What if there is a failure to give notice to employees?
Failing to notify can be costly. Damages include back pay and benefits to each affected employee who did not receive notice for the period of violation up to 60 days. There is also a civil penalty of up to $500 per day.
What do I do if I get laid off?
Confusion, anger, disappointment and embarrassment are all normal emotions after being laid off. People often try to keep their job loss a secret, even from their family. Fight this feeling. Unemployment can be a stressful time and you need the support of family and friends. They will be the people who will support you while you look for a new opportunity. Keeping up a routine will help keep you on the right path. Treat yourself well. Eat right, exercise, get enough sleep and go about looking for a job as a job itself.
TIP: Although you may be angry, remember to leave the employer on good terms. You may need to go back to them for references, and you want them to remember you as being a professional even as you walk out the door.
First steps to take after a layoff:
In the short term, plan to do the following:
- Speak to your former employer about COBRA.
- File for unemployment.
- Update your resume.
- Network.
COBRA is a federal program that requires employers in most cases to allow you to continue your medical insurance at the group rate for the next 18 months. For more on your COBRA rights, see below.
Each state has a program that gives assistance to those employees who have lost their jobs through no fault of their own. While you were working, you paid into the fund. It is there for your use so take advantage of it. Most states' employment offices also offer out-of-work individuals training, Internet assistance and job leads. Check with your local employment services agency.
Add skills and responsibilities that you have learned in your last position. Put in any training or other skills that you may have acquired.
Make a list of everyone you know. Friends, family and old work acquaintances. All these people can help in making you aware of new opportunities to consider.
TIP: If you were fired from your last position, the worst thing that you can do is lie about it. Bad situations are often the best learning experiences. Speak about what you gained at your last job rather than focusing on the negative.