Employment Law Commentary, January 2009

New York Mini-WARN Act Effective Soon – How Does It Compare to Federal and California WARN Acts?

The recent economic downturn has sent companies scrambling for ways to cut costs, with many contemplating layoffs. Companies that choose to go ahead with layoffs should be aware of the requirements of the Federal Worker Adjustment and Retraining Notification Act ("Federal WARN"), as well as its many state counterparts or "Mini-WARN Acts." Federal WARN was enacted in 1988 to provide protection to employees, their families and communities, by requiring employers to provide notice sixty days in advance of covered plant closings and mass layoffs. New York passed its own Mini-WARN Act in August 2008, which becomes effective on February 1, 2009. New York's law differs from Federal WARN and many other Mini-WARN Acts in some significant ways.