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setoff due to lack of mutuality.
Debtors, and particularly debtor's counsel, who may face the need to close a portion of the business and layoff workers need to be aware of the Worker Adjustment and Retraining Notification Act ("WARN"), 29 U.S.C. §§ 2101 through 2109. Additionally, some states have enacted similar laws designed to protect employees from unannounced plant closings and layoffs. No attempt is made here to be precise with respect to the many definitions contained in the act and the Department of Labor rules interpreting it, but merely very generally to alert counsel to its existence and potential applicability.
WARN requires employers to give sixty-days advance notice of shutdowns affecting at least fifty workers and of layoffs that would last more than six months and affect one-third of the workers at the site. The Department of Labor rules interpreting WARN indicate the notification requirements are triggered when a plant closing results in the termination of fifty or more workers, including managerial and supervisory employees, at a single site, a layoff exceeding six months, or a definite reduction in individual employee work hours. There are several detailed exemptions.
Department of Labor rules interpreting WARN require notices to be provided to state dislocated worker units, local government and affected employees at least 60 calendar days in advance, and be written in a language understandable to employees. Additionally, the notices to non-union employees must contain a statement: (1) as to whether the action is permanent or temporary; (2) whether the entire plant will be closed; (3) the expected date when the action will begin; (4) when the individual employee will be separated; (5) an indication of whether job-bumping rights exist; and (6) the name and telephone number of company official who may be contacted for further information. Notices to union
