Warn Act

franfields

Would a farm with 100 employees fall under the Warn Act if the assets are sold to another farmer and all but 95 of the employees are going to be hired by the other farmer? Could the 5 non-hired employees sue?

Don D

Warn triggers in cases of shutdown or layoff, not simple sale, unless one of the other two is involved. There are some exceptions to WARN also, such as: The faltering company exception in which the employer must have been actively seeking capital or business that would have allowed the layoff to not occur. Or the unforeseen business circumstance exception in which the employer could not reasonably foresee the action of layoff coming. Or the natural disaster exception, which I don't think would apply to you. Since the employer would also have been required to notify the Arkansas Employment Security Commission (I'm assuming you're there), you can call that state office and ask them for a full rundown on WARN. And if you are the employer rep, you can work it through them. They also have a rapid response team that is supposed to come into action when something like this is imminent. You could also do a simple internet search for worker adjustment retraining notification act. One of the more astute forum people can paste up a website at the speed of light but I can't do that. Hope this helps.

franfields

Thanks Don. Haven't written back and forth with you in awhile. It's in North Carolina, a pork farmer and his family who are retiring. (I thought it was chickens last week and then found out it was pigs - it's a client of the firm where I work) They are selling everything except the land which they will rent out.

Last week's question was whether or not they had to offer cobra to the 5 employees, out of 100, who wouldn't be going with the farmer who is buying their pigs and equipment. I think I got my answer to that, actually a confirmation of what I already thought, if there is no insurance there is no cobra (they are retiring and shutting down the plan).

Don D

It is my opinion that the WARN requirements DO apply in this case, but a call to the state agency I mentioned will get you a written answer or perhaps an emailed brochure of their requirements.

LFernandes

[font size="1" color="#FF0000"]LAST EDITED ON 10-28-03 AT 09:02AM (CST)[/font][p]Here is the link but I don't think WARN would apply in this situation based on the definition of a mass layoff. I think I read the original post correctly that only 5 employees won't be hired (Correct me if I'm wrong):

Mass Layoff: A covered employer must give notice if there is to be a mass layoff which does not result from a plant closing, but which will result in an employment loss at the employment site during any 30-day period for 500 or more employees, or for 50-499 employees if they make up at least 33% of the employer's active workforce. Again, this does not count employees who have worked less than 6 months in the last 12 months or employees who work an average of less than 20 hours a week for that employer. These latter groups, however, are entitled to notice.


[url]http://www.doleta.gov/programs/factsht/warn.htm[/url]


LFernandes