New York State Labor Department Announces Legislation Requiring Companies to Provide a 90-Day Layoff Notice

New York’s Worker Adjustment and Retraining Notification Act’s Provisions Among the Most Stringent in the Nation

State Labor Commissioner M. Patricia Smith, joined at an event in Poughkeepsie by Congressman John Hall and other local officials, today announced the signing by Governor David A. Paterson of the State Worker Adjustment and Retraining Notification (WARN) Act.  The state law will provide more advance notice to workers facing layoffs than under the federal WARN law.  It requires private employers with 50 or more workers to notify employees and the Department of Labor at least 90 days prior to a plant closing or mass layoff.  Businesses that fail to file a WARN notice in the allotted time period will be subject to penalties of up to $500 per day for each violation. The new law also gives the Commissioner the authority to order relief, including back wages and unpaid medical benefits for employees who don’t receive the required notice.

The need for a stringent law at the state level comes on the heels of a number of companies that closed their doors in recent years and gave their workers little or no prior notification.  The federal WARN Act only applies to companies that employ 100 or more workers and requires only 60 days notice to these workers.  The federal law also lacks an administrative enforcement mechanism, which requires workers facing job loss to sue their employers privately. The new law will close this loophole, which has allowed employers that fail to provide workers with a timely WARN notice to escape liability for their violations.

The WARN Act is widely viewed as a good business practice that provides displaced employees with more time to prepare for layoffs, thus increasing the chances that they will find a new job in a reasonable amount of time.  It gives rapid response teams at the state and local levels more time to assist affected employees through targeted job fairs and recruitments, and offers the Department of Labor ample time to meet with employees to talk about the unemployment insurance process, services provided at local One-Stop Career Centers, and essential training/retraining services.  When there is no notice, it is more difficult for the Department of Labor to coordinate with displaced workers on re-employment services.  This increases the time they may spend collecting unemployment insurance.   

Congressman John Hall said, “In today’s uncertain economic times, every day that’s available to find new employment helps. Workers who lose their jobs through no fault of their own deserve advance notice so they can retrain if needed and find jobs to continue working to provide for their families. I commend Commissioner Smith and Governor Paterson for implementing this reform that will give workers the time they need when facing unemployment, and I will continue to support efforts to strengthen the federal WARN Act.”

Commissioner Smith thanked Governor Paterson and both houses of the State Legislature, including the bill’s sponsors, Assemblywoman Patricia Eddington and Senator Joseph Robach, for their tremendous bipartisan support of the bill.  She also commended Senator Hillary Rodham Clinton for bringing this national issue to the Labor Department’s attention, and thanked her for her continued push for stronger WARN provisions for workers across the state and nation.  

Assemblyman Kevin Cahill said, “It is always unfortunate when an employer cuts back or shuts down altogether.  When it does so in such a way that leaves employees without the notice they need to keep their lives together, it is just wrong. This state legislation will supplement federal rules by giving enforcement powers where it can actually do some good.”