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Federal WARN Act Warning

The daily headlines evidence the job losses American workers are suffering. Many companies are cutting back operations and some have ceased to exist. The recent demise of Wall Street titans and the disappearance, at least in some parts of the country, of staples such as the local Bennigan’s and Starbucks reminds us of the difficult times in which we live. In the unfortunate event of a reduction in force, employers need to be sure to comply with the Worker Adjustment and Retraining Notification (WARN) Act, which requires at least 60 days’ advance notice of a plant closing or mass layoff. Failure to provide the required notice can expose an employer to claims for back pay and benefits and to punitive damages.

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