Plant Closing???

Our resort will be under going major physical renovations this coming December, 2002. We will actually be closed to the public for 12 days and the majority of our staff will not be assigned to work during this period.

Is this considered a Plant Closing under the Warn Act?
Do we need to notify local government?
Do we need to notify each individual employee who will not be assigned to the project?


We've already sent a general notice to our staff and will post reminders periodically during the year. We will not be removing anyone from benefits programs, i.e. health coverage, accruals, active status, etc.

Will staff who do not have available vacation time be eligible for unemployment?
Any employees not assigned to renovations, will be off without pay if they don't use available vacation pay. We've recommended saving vacation time for this period, but are not requiring the use.

Any suggestions/recommendations?

Thanks,

Holly, AL

Comments

  • 3 Comments sorted by Votes Date Added
  • A short term temporary shut down as you have described will not triggar federal Warn act requirments. Under the federal law, the employee loss has to be for 6 months. (NOTE: if something happens with the renovations, and you can't open when you expected, WARN may then be triggered.) There may be state WARN type requirments that you need to look into. Texas doesn't have any, but some states might.

    As for unemployment, that will be state law specific. Many states impose a waiting period, so the employees may be recalled before they get to collect. You can probably quickly find out the answer from your state employment commission.

    Good Luck!
  • Holly,

    We are a corporate training facility located in Georgia. As such, we have on-site dining, on-site lodging, on-site training facilities/rooms/auditoriums, etc. We are not a transient facility, so your average person cannot come to our facility and request a room for the night, unless our Sales Dept. happens to open up a block of rooms for a big event that might be in town.

    I state all this to say that, being the type of facility we are, we have what we call "shutdown" periods. These usually occur during the holiday weeks (Memorial Day, Labor Day, Thanksgiving, Christmas, New Year's). During these times, there is very little if no work available (and with 9/11, it made things even worse). We were closed down for three weeks for Christmas and New Year's this past year. As such, we offer our team members partial unemployment through the state, which they take advantage of on a regular basis. The payroll person simply puts the hours down that they work for the week. Their insurance coverage is not affected in any way.

    Hope that helps in some way.

    Dianna
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