Employers Be Warned: New York Enacts Mass Layoff and Plant Closing Law


During these uncertain and difficult economic times, companies may find themselves considering significant layoffs or plant closings in order to consolidate and preserve their businesses. However, there are new legal consequences to these actions that will affect New York companies with as few as 50 employees.

On August 5, 2008, Governor Paterson signed into law the New York State Worker Adjustment and Retraining Notification Act (NY WARN). The new law is intended to protect employees by requiring covered employers to provide legally mandated notice prior to mass layoffs, relocations or plant closings. While a federal act already exists, NY WARN has a lower threshold for coverage and imposes a longer notice period.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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