The WARN act serves to require business leaders to give their employees adequate warning before shutting down the company or performing large scale layoffs. Ideally, this time will make it possible for employees to find other work or get the training they need to enter a new work field. If a business fails to inform their employees adequately, as dictated by the WARN act, they could face numerous lawsuits and further legal actions.
- The WARN act applies to companies that have 100 or more employees. It dictates the following:
- The employer must give adequate warning if they are shutting down the business
- The employer must give adequate warning if they will be laying off 50-499 workers
- The employer must give adequate warning if they will be laying off over 33% of the workforce
- Under this act "adequate warning" requires that business leaders inform their employees at least 60 calendar days before the scheduled closing or layoffs will occur
For more information on business law and how the WARN act applies to you, visit the website of the Texas business lawyers at Slater Kennon & Jameson today.