The Warn Act stands for The “Worker Adjustment and Retraining Notification Act.”
This law was put into place in 1988 to help assist families with the hardships that come along with losing a job because of a company relocation, corporate downsizing, closing, or mass layoff. This can be an issue for employers, as employees sometimes are within their right to sue their employer for damages if they do not comply with the WARN notices law.
Warn Act Requirements
When an employer lays off a large number of employees or closes their business, employees have some rights.
If you employ Union workers, they might have certain rights based on their contract with the company. Some of these rules may be applying for other open positions or bumping fewer senior employees who have not been targeted to be laid off.
While it is not required, offering your employees outplacement services can help better set them up for their future if they are being terminated or inform them of possible moving tax deductions they could qualify for if they need to relocate.
What Is a Warn Notice?
The Federal Warn Act, or Worker Adjustment and Retraining Notification, usually only applies to larger employers. In Ohio, employers must have at least 100 full-time employees to be covered by Warn during a closing, downsizing of the company, mass layoff, relocation, or involuntary termination.
To be considered full-time, you need to work at least 20 hours per week and be employed for at least six months out of the 12 months before notice is required. You can also qualify for Warn if you have at least 100 employees who work a combined total of 4,000 hours or more each week.
How to Know if the Ohio Warn Act Applies?
The Ohio Warn Act has many regulations that state this law applies to. It states that:
- You have over 100 full-time employees
- If your business or organization is not for profit or is for-profit
- If your company or industry is privately or publicly held
- A Warn notice needs to be given if your company is doing a mass layoff or closing
How to Stay Compliant
To comply with the Ohio Warn Notices Act, you must let your affected employees know at least 60 days before their last day of employment with your company. This can be done in several ways, as long as it is delivered to your employees in writing. The most common way to inform your employees is by writing a letter.
If your company is relocating or you need to lay off many employees, you can file an official Warn notice to start the Rapid Response process so your affected employees can be helped. Upon receipt of the Warn notice, the Rapid Response Unit will coordinate with you and your company so you can provide information to your employees about what steps they need to take.
Warn Notices by State
Like Ohio, most states follow federal requirements regarding the Warn Act when a business is closing or a large number of employees are being laid off. However, some states operate rapid response offices to help enforce the federal Warn Act. Seven states have enacted layoff notice requirements similar to the federal Warn Act.
- California – Applies to employers with over 75 or more part-time employees where at least 50 employees will be laid off because the business is closing, relocating more than 100 miles from the current location, or there is going to be a mass layoff. Unlike federal law, there is no requirement that states the amount of employees being laid off constitutes a certain percentage of the employer’s workforce.
- Illinois – Applies to employers with over 75 full-time employees when at least 25 or more full-time employees are being laid off, and they make up one-third or more of the total time employees at the specific location. This also applies if over 250 full-time employees are being laid off.
- Maryland – Maryland has their version of the Warn Act, the Maryland Economic Stabilization Act. It is a voluntary act that applies to employers in the commercial, industrial, and business industries with over 50 employees.
- New Jersey – Applies to employers who have been in business for at least three years and have a minimum of 100 employees. This applies when a covered employer terminates or transfers its operations during a 30 day period where at least 50 full-time employees are laid off. It also involves the employer having a mass layoff in a 30 day period where at least 500 full-time employees or 50 or more full-time employees represent one-third of the company’s full-time employees.
- New York – Applies to private employers with at least 50 employees and 25 employees are laid off.
- Tennessee – Applies to employers with at least 50 employees rather than the 100 required by federal law.
- Wisconsin – Applies to employers with at least 50 employees.
Final Thoughts
As a business owner or HR manager, it is essential to understand Warn notices. Staying compliant is crucial to a smooth and efficient relocation. For help with everything involved in your business relocation, schedule a free consultation with us today.