Identify Employees for and Complete a Reduction in Force Under the WARN Act
When to Use This Flowchart
Use the Identify Employees for and Complete a Reduction in Force (RIF) Under the WARN Act flowchart to properly choose the appropriate employees to be included in a reduction in force, and to navigate through the requirements of the Worker Adjustment and Retraining Notification (WARN) Act without creating further exposure for the employer.
Employers may face economic hardships, natural disasters or reorganization, any of which may require companies to lay off large numbers of employees or close entire facilities altogether. The federal WARN Act imposes certain requirements in these scenarios, but only applies to employers with 100 or more full-time employees. For those employers that are covered by the WARN Act, federal law requires them to provide 60 days' advance notice to the selected employees prior to the date of the layoff, but only in certain circumstances.
This flowchart is valuable for employers that are considering "mass" layoffs or plant closures, to help them ascertain whether they are covered by the federal WARN Act, and if so, how best to go about complying with the law, so as not to create further risk for the employer. Importantly, employers should also examine whether state law applies to their layoff or plant closure, as some states have their own legislation that covers employers at lower thresholds in terms of the number of full-time employees they employ.
Key Steps
- Does the employer have 100 or more full time employees?
- Is the need for a layoff due to unforeseeable business circumstances?
- Is the need for a layoff due to a natural disaster?
- Notify the requisite individuals and entities of the upcoming layoff, reduction in force or plant closing at least 60 days in advance