Bill Would Expand WARN Act Coverage and Increase Employer Penalties for Violations

Recently-introduced legislation would require employers to provide Worker Adjustment Retraining Notification (WARN) Act notices to employees in the event of mass layoffs that occur at more than one worksite, and would double the penalties for violations. The Alert Laid off Employees in Reasonable Time (ALERT) Act (H.R. 2077), introduced by Rep. Luis Gutierrez (D-Ill) and co-sponsored by four others, expands the current WARN requirement that employers provide 60 days’ notice of an impending mass layoff affecting either 500 employees or 33 percent of the workforce impacting at least 50 employees at one particular worksite.

Specifically, the ALERT Act would amend the WARN Act by including as a definition of “mass layoff” a reduction in force which:

(C) results in an employment loss for a single employer at more than 1 site of employment during any 30-day period for--

(i)(I) at least 33 percent of the employees of the employer (excluding any part-time employees); and

(II) at least 50 employees (excluding any part-time employees); or

(ii) at least 500 employees (excluding any part-time employees).

Additionally, the new bill would require employers to award employees double the amount of back pay as a penalty for violating the provisions of the WARN Act.

This legislation has been referred to the House Committee on Education and Labor.
 

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.