As an employer in Texas it’s important to understand the federal Worker Adjustment and Retraining Notification (WARN) Act and how it pertains to layoff decisions.
While other states may have their own WARN Acts, Texas follows the federal regulations.
What does this mean? Let’s take a look.
What is the WARN Act?
First, let’s understand what the WARN Act is all about. The (WARN) Act is a federal law enacted to protect employees during specific job loss situations.
Its primary goal is to provide advance notice to employees and local government authorities in the event of plant closures or mass layoffs.
These notifications ensure that affected employees have ample time to prepare for the transition and seek alternative employment opportunities.
Obligations for Employers
As an employer, it is crucial to understand your obligations under the WARN Act. For example, if you are a covered employer you must provide notice to affected employees at least 60 days before any planned plant closures or mass layoffs.
This notice must also be given to the appropriate state or local government officials.
It’s important to note that failure to comply with the WARN Act can result in legal consequences, including potential lawsuits and financial penalties.
Key Provisions of the WARN Act
The WARN Act applies to businesses that meet specific criteria. Generally, covered employers are those with 100 or more full-time employees, or those with 100 or more employees working a combined total of 4,000 hours or more per week.
In other words, if you run a small company and have fewer than 100 employees, the WARN Act likely will not apply to you, but you should confirm with a Texas employment lawyer.
Each situation should be assessed individually to determine if compliance is required. Notably, even temporary layoffs or furloughs may trigger the need for notice under certain circumstances.
Consequences of Non-Compliance
Non-compliance can result in severe consequences, including back pay and benefits owed to affected employees.
If you’re considering a mass layoff or plant closure, keep in mind that while the federal WARN Act won’t stop you from implementing these changes, it does require you to give employees sufficient notice. Again, the notice period is generally 60 days, and if you have unionized employees, you’ll also need to notify their union representative within the same time frame.
Additionally, employers may be subject to civil penalties imposed by the government. To protect your business interests, it is highly recommended to seek guidance from an experienced employment law attorney who can navigate the complexities of the WARN Act and ensure compliance.
Contact Our Frisco Employment Law Attorneys Today
Understanding the WARN Act is important for employers in Texas. By complying with this federal law, employers can avoid legal complications and maintain a positive relationship with their employees.
If you still have questions or have any employment law inquiries, don’t hesitate to reach out to the Frisco Employment Law Attorneys at Simon | Paschal PLLC.
Schedule a consultation today by calling (972) 893-9340 or contact us here!
Watch
