WARN Act Updates

November 11, 2020 Update:

Warning to New York Employers: The NY WARN Act Now Requires WARN Notices be Sent to Additional Governmental Recipients

Governor Andrew Cuomo signed into law Assembly Bill A10674a. The legislation, which took effect immediately, amended the New York Worker Adjustment and Retraining Notification (WARN) Act by substantially expanding the list of governmental entities that must receive advance notice of a WARN-triggering event.

Under the New York WARN Act, covered employers (those employing 50 or more countable employees within the state) generally are required to give 90 days’ advance notice of certain qualifying mass layoffs, plant closings, reductions in hours, and relocations. NY WARN also has a number of unique provisions regarding the content of notices, who must receive notices, the company official who must sign government notices, and the requirement of an original signature on one government notice.

Under prior law, NY WARN notice was due to the State Department of Labor, each affected employee, each union representing affected employees, and the local Workforce Investment Board.¹ In addition, federal WARN, when triggered, adds the requirement of notice to the chief elected official of the unit of local government where the qualifying WARN event takes place and to which the employer paid the highest taxes in the preceding year.² As amended, New York WARN now requires that, in addition to these recipients, WARN notice be sent to: (1) the chief elected official of the unit or units of local government and the school district or districts in which the WARN event will occur; and (2) each locality that provides police, firefighting, emergency medical or ambulance services or other emergency services to the site of employment where the WARN event is occurring. According to the bill’s legislative sponsors, the purpose of this change is to advise these local government recipients of the potential loss of tax revenue and the possibility that health and safety dangers may exist on abandoned properties.³

The amendment does not specify the content of these new notices. Until that issue is clarified by revised New York regulations, employers should, at a minimum, provide the content required under federal WARN for notices to local governmental entities, because the New York statute states generally that New York WARN notices must include the information required in a federal WARN notice. Employers should also consider including the additional content required by existing New York regulations for WARN notices given to the local Workforce Investment Board.

While the amendment specifically states it is effective immediately, it does not expressly address whether these additional notices are required for WARN-triggering events that occur after the law becomes effective but as to which WARN notice was already issued before the amendment became law. Revised regulations might also address this issue.

WARN Act compliance can be complicated, and if done incorrectly, costly. This amendment to New York WARN makes New York WARN Act compliance more complicated. Employers contemplating a WARN-triggering event should consult counsel to discuss all aspects of WARN Act compliance, including the required recipients of notice and the content of those notices.

Worker Adjustment and Retraining Notification (WARN) Act

The Worker Adjustment and Retraining Notification (WARN) Act Helps ensure advance notice in cases of Qualified plant closings and mass layoffs. The U.S. Department of Labor has compliance assistance materials to help workers and employers understand their rights and responsibilities under the provisions of WARN.

WARN – Workers Guide to Advance Notice of Closing and Layoffs

The WARN Worker’s Guide to Advance Notice of Closing and Layoffs

WARN – Employers Guide to Advance Notice of Closing and Layoffs

The WARN Employer’s Guide to Advance Notice of Closing and Layoffs