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What to know about WARN Act notices and why they precede big layoffs

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What to know about WARN Act notices and why they precede big layoffs

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General Motors Co. on Monday said it is eliminating more than 1,000 jobs in its software division globally, with 634 of the jobs being cut coming from its Global Technical Center in Warren.

Stellantis said earlier this month that its Warren Truck Assembly will lose a shift later this year, which could potentially affect 2,450 workers.

Both automakers had to file a WARN Act notice with the state of Michigan at least 60 days before they lay off employees, outlining these actions and the reason for them.

So, what is a WARN Act notice? Here are common questions and answers about the notice required by U.S. labor law, its purpose and which employers and employees are covered by the rule.

What is the WARN Act?

The Worker Adjustment and Retraining Notification Act is a U.S. labor law that went into effect in 1989 and aims to protect employees, their families and communities by requiring employers to give a 60-day notice before a plant closing or mass layoff. The origins of the law go back to the 1970s and the 1980s with the closings of several large steel mills and the impact of that on communities such as Toledo and Pittsburgh, according to a 2008 U.S. Senate hearing recognizing the 20th anniversary of the law.

Who is covered by WARN?

In general, employers with 100 or more employees are covered, according to the Michigan Department of Labor and Economic Opportunity.

Private, for-profit employers and private, nonprofit employers are covered, the department said, as are public and quasipublic entities.

Employees entitled to notice under WARN include hourly and salaried workers, as well as managerial andsupervisory employees.

More on Stellantis’ actions: Warren Truck to lose shift as Ram 1500 Classic production ends; UAW’s Fain blasts cuts

More on the GM cuts: GM to cut at least 1,000 software jobs, biggest impact at GM Tech Center in Warren

Who is not covered by WARN?

Employees who have worked fewer than six months in the last year are not covered by the act. Employees who work less than an average of 20 hours a week also are not covered.

Regular federal, state and local government employers that provide public services are not covered.

Consultants or contract employees who are assigned to the business but who have a separate employment relationship with another employer are not covered.

Who must receive the WARN notice?

Employers must give notice to employees and local government officials before they execute a mass layoff or an employment site closing.

What triggers a WARN notice?

Employers must issue a WARN Act notice:

  • When an employment site will be permanently shut down, and the shutdown will result in an employment loss.
  • If there will be an employment loss at the 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 workforce. For example, if an automaker closes a plant for two weeks in the summer to retool, that wouldn’t trigger a WARN notice, but if that extended beyond a month, that may trigger a WARN notice depending on how many employees work at the plant.
  • When the sale of a business results in a mass layoff or the closure of a plant.
  • When an employment loss takes place, meaning a termination other than a discharge for cause, voluntary departure or retirement; a layoff exceeding six months (for example, if employer lays off an employee but says they’ll be called back to work but doesn’t for more than six months); or when there is a reduction in an employee’s hours of work of more than 50% in each month of any six-month period.

Where can I find WARN notices related to Michigan?

To view individual WARN letters, go to the Michigan Workforce Development Agency’s (part of the Michigan Department of Labor and Economic Opportunity) WARN Notices website.

To view a list of WARN notices issued in 2024, as well as a list of WARN notices from prior years, go to MilMI.org/WARN/.

Where can I find more information about WARN notices?

The U.S. Department of Labor’s Employment and Training Administration agency has guides for workers and for employers at DOL.gov/agencies/eta/layoffs/warn.

Contact Adrienne Roberts: amroberts@freepress.com

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