If you are planning to lay off employees in the state of Texas, you will need to make sure that you comply with all regulations of the Worker Adjustment and Retraining Notification Act (commonly known as the WARN Act). The WARN Act ensures that your employees are treated fairly and that you are not penalized for your layoff or reduction in force (RIF) event.
The WARN Act …
Applies to organizations that have over 100 full-time employees.
Applies to both publicly and privately held companies.
Applies to organizations that are for-profit or not-for-profit.
Requires that notice is given if there is a plant closing or a mass layoff.
The first three stipulations are relatively straightforward. If you have over 100 full-time employees, the WARN Act will apply to you regardless of whether your organization is public or private, for-profit or not-for-profit. The final stipulation can be a bit trickier, as it relies on understanding the federal definitions of a “plant closing” and “mass layoff.”
According to the US Department of Labor, a plant closing is defined as:
“the permanent or temporary shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment, if the shutdown results in an employment loss at the single site of employment during any 30-day period for 50 or more employees excluding any part-time employees.”
The Federal WARN Act defines a mass layoff as:
“a reduction in force which results in an employment loss at the single site of employment during any 30-day period for at least 33 percent of the employees (excluding any part-time employees), and at least 50 employees (excluding any part-time employees).
Does the WARN Act Apply in Texas?
All US states must abide by the federal WARN Act regulations. It’s also important to note that some states have more stringent regulations specific to companies or employees located in their state.
How To Comply
To comply with the WARN Act in Texas, you will need to send a WARN Notice Letter to your affected employees 60 days in advance of their last day with the organization. This notice can be sent through several different delivery methods, as long as it is given in writing. The Department of Labor states that any reasonable method of delivery is applicable.
However, the Department of Labor also states that, “Use of preprinted notices that are regularly included in employees’ paychecks or pay envelopes are not acceptable and do not meet the WARN Act requirements.” This means that if your organization regularly gives out notices about the workplace to your employees with their paychecks, then providing a WARN notice this way will not be sufficient. This is because your employees might not distinguish this WARN notice from the other notices they regularly receive through this delivery method.
Your organization must also provide a notice to your state government about your reduction event. Similar to the notice given to your employees, this notice must also be delivered at least 60 days in advance. According to the DOL, “Advance notice should be given to the State Rapid Response Dislocated Worker Unit as well as to the chief elected official of the local government where the closing or mass layoff is to occur.”
Companies with Employees in Multiple States
If you plan to lay off employees in multiple states, it is crucial that you research the individual state laws for each location -- even if the majority of your employees or your headquarters are located within Texas. In such cases, one strategy is to identify the state with the most restrictive laws where you will be giving WARN notices, and then follow those regulations for all of your impacted employees across all states.
Should you have any questions or concerns about the FEDERAL WARN ACT, please reach out to Derek Saunders, Keith Strahan, or Richard Armstrong of our firm, shown here: https://lfbrown.law/our-team
