What is WARN?
The Worker Adjustment and Retraining
Notification Act (WARN) was enacted on August 4, 1988 and became
effective on February 4, 1989.
WARN offers protection to workers,
their families, and communities by requiring employers to give 60 days
advance notice of covered plant closings and covered mass layoffs. This
notice must be given to either the affected workers or their
representatives (e.g., a labor union) plus the State Dislocated Worker
Unit and the appropriate unit of local government.
In general, employers are covered by
WARN requirements if they have 100 or more employees, not counting
employees who have worked less than 6 months in the last 12 months and
not counting employees who work an average of less than 20 hours a week.
Federal, State, and local government entities which provide public
services are not covered by WARN. Employees entitled to notice under
WARN include hourly and salaried workers as well as managerial and
supervisory employees. Business partners are not entitled to WARN
notices.
Enforcement of the WARN requirements
is through the United States district courts. Workers' representatives
of employees and units of local government may bring individual or class
action suits. In any suit, the court, at its discretion, may allow the
prevailing party a reasonable attorney's fee as part of the costs.
Plant Closing:
A covered employer
must give notice if an employment site will be shut down and the
shutdown will result in an employment loss (as defined later) for 50 or
more employees during any 30-day period. An employment site is defined
as one or more facilities or operating units within an employment site.
The 50 or more employees criterion does not count employees who have
worked less than 6 months in the last 12 months or employees who work an
average of less than 20 hours a week for the covered employer. These
latter groups, however, are entitled to notice (discussed later).
Mass Layoff:
A covered employer must
give notice if there is to be a mass layoff (which does not result from
a plant closing), which will result in an employment loss at the
employment site during any 30-day period for: a) 500 or more employees,
or b) 50-499 employees if they make up at least 33 percent of the
employer's active workforce. Again, this does not count employees who
have worked less than 6 months in the last 12 months or employees who
work an average of less than 20 hours a week for that employer.
An employer also must give notice if
the number of employment losses which occur during a 30-day period fails
to meet the threshold requirements of a plant closing or mass layoff but
the number of employment losses for two or more groups of workers --
each of which is less than the minimum number needed to trigger notice
-- reaches the threshold level of either a plant closing or mass layoff
during any 90-day period. Job losses within any 90-day period will count
together toward the WARN threshold levels unless the employer
demonstrates that the employment losses during the 90-day period are the
result of separate and distinct actions and causes.
Sale of Business:
In a situation
involving the sale of part or all of a business, one should be guided by
the following:
1. In each situation, there is always
an employer responsible for giving notice.
2. If the sale by a covered employer
results in a covered plant closing or mass layoff, the required parties
(discussed later) must receive at least 60 days notice.
3. The seller is responsible for
providing notice of any covered plant closing or mass layoff which
occurs up to and including the date/time of the sale.
4. The buyer is responsible for
providing notice of any covered plant closing or mass layoff which
occurs after the date/time of the sale.
5. No notice is required if the sale
does not result in a covered plant closing or mass layoff.
6. For purposes of WARN, on the
day/time of the sale, employees (other than employees who have worked
less than 6 months in the last 12 months or employees who work an
average of less than 20 hours a week) of the seller become employees of
the buyer immediately following the sale. This provision preserves the
notice rights of the employees of a business that has been sold.
The State of Iowa has not enacted
provisions or legislation regarding business closure/downsizing for Iowa
businesses.
For questions and issuances of
WARN notifications, contact:
State
Dislocated Worker Unit
Iowa
Workforce Development
150
Des Moines Street
Des
Moines, Iowa 50309-5563
(319)
352-4568
Email:
Workforce
Center Administration
Iowa
Workforce Development Home Page
