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Downsizing and Layoffs

When your business has to unfortunately downsize or lay employees off, there are resources and assistance the federal government offers to businesses and employees.

The Worker Adjustment and Retraining Notification Act (WARN) protects workers, their families, and communities by requiring employers with 100 or more employees (generally not counting those who have worked less than six months in the last 12 months and those who work an average of less than 20 hours a week) to provide at least 60 calendar days advance written notice of a plant closing and mass layoff affecting 50 or more employees at a single site of employment.

The WARN Act is a federal statute; many states have enacted similar legislation and some of those states require that the provisions of the Act apply to businesses with less than 100 employees.

The U.S. Department of Labor has issued guides providing both workers and employers with an overview of their rights and responsibilities under the provisions of the WARN Act.

And to help employer's and employees deal with the issues of plant closings and layoffs, the DOL's Rapid Response Services for Employers is a pro-active, business-focused, and flexible strategy designed to help growing companies access an available pool of skilled workers from other companies that are downsizing or who have been trained in the skills your company needs to be competitive; and to respond to layoffs and plant closings by quickly coordinating services and providing immediate aid to companies and their affected workers.

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