Employers need to file WARN notices when they cut jobs: What you need to know
General Motors Co. on Monday said it is eliminating more than 1,000 jobs in its software division worldwide, with 634 jobs being cut from its Global Technical Center in Warren.
Stellantis said earlier this month that its Warren Truck Group would lose a turnover later this year, which could affect 2,450 workers.
Both automakers had to file a WARN Act notice with the state of Michigan at least 60 days before laying off workers, explaining the actions and the reason for them.
So, what is a WARN Act notice? Here are some common questions and answers about the notice required by US labor law, its purpose and whether employers and employees are subject to that law.
What is the WARNING Act?
The Worker Adjustment and Retraining Notification Act is a US labor law that went into effect in 1989 and aims to protect workers, their families and the public by requiring employers to give 60 days notice before a factory closes. or fired in bulk. The law’s origins go back to the 1970s and 1980s with the closing of many large metallurgical plants and the impact of that on communities such as Toledo and Pittsburgh, according to a 2008 US Senate hearing recognizing the year 20th of the law.
Who covers WARNING?
Generally, employers with 100 or more employees are covered, according to the Michigan Department of Labor and Economic Opportunity.
Private, for-profit employers and private, not-for-profit employers are covered, the agency said, including public and quasipublic organizations.
Employees entitled to notice under the WARNING include hourly and salaried employees, as well as managerial and supervisory employees.
More about Stellantis’ actions:Warren Truck is losing momentum as production of the Ram 1500 Classic ends; UAW’s Fain blasts cuts
More on reducing GM:GM to cut at least 1,000 programming jobs, a major blow to the GM Tech Center in Warren
Who is not covered by WARN?
Employees who have worked less than six months in the previous year are not covered by this law. Workers who work less than an average of 20 hours per week are also exempt.
Regular federal, state and federal employers who provide public services are not covered.
Consultants or contract workers who are assigned to a business but have a separate employment relationship with another employer are not covered.
Who should receive a WARN notice?
Employers must give notice to employees and local government officials before mass layoffs or workplace closures.
What generates a WARN notice?
Employers must provide a WARN Act notice:
- The workplace will be closed permanently, and the closure will result in the loss of employment.
- If there will be a loss of employment at the site during any 30-day period for 500 or more employees, or for 50-499 employees if they make up at least 33% of the employer’s workforce. For example, if an auto manufacturer shuts down a plant for two weeks in the summer for recycling, that would not trigger a WARN notice, but if that were to extend beyond a month, that would trigger a WARN notice. depending on how many employees work in the factory. .
- When the sale of a business results in mass layoffs or plant closures.
- When job loss occurs, which means dismissal without cause, voluntary departure or retirement; dismissal for more than six months (for example, if the employer dismisses the employee but says he will be called to work but does not call for more than six months); or when there is a reduction in the employee’s working hours of more than 50% in each month of the six-month period.
Where can I find WARN notices related to Michigan?
To view individual WARN notices, go to the Michigan Workforce Development Agency’s (part of the Michigan Department of Labor and Economic Opportunity) WARN Notices website.
To view a list of WARNINGS issued in 2024, as well as a list of WARNINGS from previous years, go to MilMI.org/WARN/.
Where can I find more information about WARN notices?
The U.S. Department of Labor’s Employment and Training Administration has guidelines for workers and for employers at DOL.gov/agencies/eta/layoffs/warn.
Contact Adrienne Roberts: [email protected]
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