March 9, 2014
Do you employ 100 or more employees who generally work 4,000 non-overtime hours per week? Did you count employees who have worked less than six months in the last 12 months? Did you count employees who work an average of less than 20 hours per week? Did you count workers who are not entitled to WARN Act notice, such as business partners, to determine the number of employees? Did you count workers who are on temporary layoff, vacation, sick leave, Family and Medical Leave Act leave, or are absent for any other reason? Did you count U.S. workers at foreign sites? Do you have any temporary employees? Do you have any subsidiaries? Can they be treated as separate employers or must they be treated as part of the parent company?
WARN Act Exceptions
- If you fit within an exception to the WARN Act, you may be allowed to give less than 60 days’ notice of an impending layoff or plant closing.
- Is your company a "faltering company"? Have you been actively seeking realistic financing or business when the 60-day notice would have been required?
- Do you reasonably believe that giving the required notice would prevent you from obtaining the financing or business?
- Are there any unforeseen circumstances that would cause a plant closing or layoff? Has there been a "sudden, dramatic, and unexpected action or condition" outside your control?
- Has there been a natural disaster, such as a flood, earthquake, or tsunami, that directly affects your business?
- Has there been a natural disaster that indirectly affects your business—for example, a supplier has to shut down because of a flood?
- Do you expect the layoff to be for less than six months?
- Is the layoff or plant closing the result of a strike or lockout?
- Are there other employees at the same site who are not involved in the strike or lockout?
SOURCE: The Reduction in Force Audit Guide is available by calling the Bureau of Business Practice at 800/243-0876, ext. 245.