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New York Enacts "Mini-WARN" Law

Beginning in February 2009, employers in New York contemplating reductions-in-force not only will have to comply with the Federal Worker Adjustment and Retraining Notification Act (WARN) but also with New York's new "mini-WARN" statute. This new law highlights the need for careful RIF planning.

In general, WARN requires employers with 100 or more workers to give at least 60 calendar days of notice of (1) plant closings affecting at least 50 workers or (2) "mass layoffs" at a single site (i) of at least 33% of the workforce and 50 workers or (ii) at least 500 workers.

New York (joining, among others, California, Illinois and New Jersey) recently enacted a "mini-WARN" Act that is more expansive than WARN. Key differences between the New York law and WARN include:

  Federal Warn New York "Mini-Warn"
Employer Applicability 100 employees 50 employees
Events Covered Plant closings and mass layoffs Plant closings, mass layoffs and relocations
Notice Required 60 days 90 days
Definition of Plant Closing 50 workers affected 25 workers affected
Definition of Mass Layoff 50 employees representing at least 33% of the workforce 25 employees representing at least 33% of the workforce
Definition of Relocation Not Covered 25 employees representing at least 33% of the workforce who are relocated to a location at least 50 miles away

The New York law generally adopts the enforcement and penalty scheme of WARN with one key difference - the New York Department of Labor is empowered to enforce the Act.