Plant Closings and Mass Layoffs (The Worker Adjustment and Retraining
Notification Act (29 U.S.C.
- In the event of a plant closing or a mass layoff, all affected employees must be given
at least 60 days' notice before the effective date of the closing or layoff.
- The employer must also give notice to the State Dislocated Worker Unit, the head of the
local unit of government (the mayor or city council office), and any union representing
- There are several exceptions to the notice requirement.
- A company that suffers unforeseen business loss may give notice as soon as the plant
closing or mass layoff becomes reasonably foreseeable.
- Layoffs and plant closings that are caused by the completion of a particular project do
not require notice where the employees were hired with the understanding that their jobs
were tied to that project.
- A "faltering company" that is actively seeking new capital or business in
order to avoid a closing or layoff need not give advance notice where the company
reasonably believes that such advance notice would prevent it from obtaining the needed
capital or business.
- A bona fide strike or lockout does not constitute a plant closing or mass layoff.
- Layoffs or plant closings caused by a natural disaster.
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