The federal government considers an employer to have conducted a mass layoff when it terminates employees who file at least 50 initial claims for unemployment insurance, according to the Bureau of Labor Statistics. Under the federal Worker Adjustment and Retraining Notification Act (WARN Act), qualifying businesses must provide at least 60 days’ notice to employees before terminating them as part of a mass layoff or plant closure. The advance notice is intended to give employees time to seek retraining or new employment before losing their jobs.
Warning Signs of Impending Layoffs
Potential warning signs of a business contemplating a mass layoff include:
- Hiring freezes or positions remain open
- Significant budget cuts in the department or plant
- Significant decrease in workload
- Postponement of new projects
- Management changes, including reductions in the number of managers
- Multiple adverse earnings reports issued by the company
- A merger or acquisition
- Executives leaving the company
- Layoffs occurring in other companies in the industry
- A broad economic downturn or recession
Steps to Take If You’ve Received a WARN Act Notice
When you learn through a WARN Act notice that your employer is going to lay you off, steps you should take to protect your interests and prepare for the next stage in your career include:
- Keep and review your WARN Act notice. Review your WARN Act notice and retain a copy if you need it to prove to a future employer that your job ended due to a layoff or restructuring rather than misconduct.
- Take time to process your layoff. Losing your job can cause you to feel shock, anger, and grief. Practice self-care and take the time to recuperate from getting laid off.
- Start organizing your paperwork. Ensure that you receive your final paycheck and any severance pay afforded to you under your employment contract or company policy. Prepare any paperwork to secure health insurance (such as COBRA coverage) and unemployment compensation.
- Begin your job search. You can update your resume and create a cover letter template to help you apply for more jobs more quickly. You can also collect references from your supervisors and colleagues. You should network with colleagues, former employers, friends, and other contacts to seek new job opportunities. Also, consider pursuing retraining programs to shift into a new job or industry.
When Should I File for Unemployment Benefits?
You should file for unemployment benefits as soon as your employer informs you that it no longer requires your services. Sometimes, your employer may terminate you immediately after providing you with a WARN Act notice, although the notice requires your employer to continue your pay and benefits for 60 days. Although you may receive WARN Act pay, it can take several weeks to set up an unemployment compensation account, so promptly filing can ensure you do not have to wait for benefits when your WARN Act pay expires.
Call Us If You Need Support
Do you suspect your legal rights have been violated during a layoff? If so, contact Morgan, Collins, Yeast & Salyer today for a free initial consultation with an attorney. We’re ready to review your situation, advise you about your rights, and explain your legal options for pursuing justice.
