Plant Closings

Plant Closings and Mass Layoffs (The Worker Adjustment and Retraining Notification Act (29 U.S.C. §2101))

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 the employees.
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.