Notice to Non-Profits:
New York State WARN Act takes effect February 1st, 2009
Although the Federal WARN (Worker Adjustment and Retraining Notification) Act has been in effect for several years, New York State has now enacted its own version of the employee protection notification scheme. The New York State version imposes more stringent requirements, bringing far more employers under the purview of this legislation that the Federal law. The effect is that where many non-profits would never have been affected by the Federal legislation, many will come under the auspices of the New York State version.
Under the Federal WARN Act, employers with 100 or more employers who plan on laying off 50 workers or more within a 30 day period must provide 60 days notification to those workers. This notification also requires that employers continue wages and benefits for that 60 day period. Very few non-profits, except for large organization such as hospitals and educational institutions, were affected by this law.
However, New York State has expanded the purview of the Federal law. Under the New York State version of WARN, which is to take effect on February 1st, 2009, all employers with 50 or more workers, who plan to lay off the greater of 25 employees or 1/3 of their workforce within a 30 day period must provide their workers with 90 days notice.
Further, if 250 workers are to be laid-off, the notice must be given regardless of whether the 250 represents 1/3 of the workforce.
Additionally, if an entire plant (or location) is closed or “substantially all” of a plant (or location) is relocated at least 50 miles away, the 90 days notice applies even if less than 25 workers are affected. This 90 days notice period requires that any employer continue wages and benefits for the entire 90 days after the notice regardless of whether the employees come to work or not.
Penalties for failure to provide the required notice can be severe including New York State penalties of up to $500 per day or reimbursement of employee’s wages and benefits for up to 60 days. Employees may also sue privately under the Act.
Obviously, this imposes yet another level of employee protection in New York. If you are employer with 50 or more employees, you must be cognizant of the above regulations in the event layoffs become inevitable due to the present economic downturn.
Should you have further questions or concerns relevant to the requirements of this New Act, do not hesitate to contact Kevin M. Stadelmaier, Esq, Legal Advisor, NYCON, Inc., Legal Accountability and Compliance Services, Western New York Regional Office, (716) 241-5010 x170 or email kstadelmaier@nycon.org. |
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