Poor Economy Could Lead to Rise in WARN Claims

2009-03-18 04:16:44 (GMT) (WiredPRNews.com - Employment Law, Top Stories)

Dallas, Texas (WiredPRNews.Com) — Given the recent economic slump, many workers have lost their jobs, and experts predict that many more workers will also be laid off. But laws exist to protect these workers. For example, the Worker Adjustment and Retraining Notification Act (“WARN”) requires covered employers to provide workers with sixty days written advance notice of plant closings or mass layoffs. WARN generally applies to employers who employ one hundred or more workers.

Some companies have not complied with this law, perhaps because the companies completely collapsed or perhaps because the decision-makers did not obtain sufficient legal advice. As a result, some former employees are seeking to bring class-action law suits against their former employers alleging WARN violations. An employer who violates WARN is liable to each aggrieved employee for back pay and benefits for the period of the violation, up to sixty days. As layoffs continue to occur daily, these lawsuits may multiply quickly.

If an employer believes that it may need to reduce its workforce, the employer should contact legal counsel. An employment law attorney can determine if WARN applies to the specific reduction-in-force situation and, if so, guide the employer to ensure that WARN’s specific provisions are met.

If you would like to speak to an employment law attorney about an employment-related matter, contact the employment lawyers at Clouse Dunn Khoshbin LLP at [email protected]

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