One of the most challenging (emotionally, economically and legally) aspects of a volatile economy is its impact on the workforce. Recent studies show more than 50% of Americans live paycheck to paycheck. Employers, many facing the existential threat of diminishing revenue, are often forced to take devastating cost cutting measures, including reductions in force, facility closures or other significant layoff events.
On the other side of the spectrum, even the most profitable employers must plan for the future, including optimized allocation of payroll and personnel. Growth often comes with contraction, and the workforce is no exception to that rule.
What is the Worker Adjustment and Retraining Notification (WARN)?
For many years, federal law (the Worker Adjustment and Retraining Notification (WARN) Act) has governed employer notice and compensation requirements for a mass layoff event in Ohio. At a high level, Federal WARN applies to employers with 100 or more employees and generally requires 60 days’ advance notice if the employer:
- Closes a facility or discontinues an operating unit affecting at least 50 employees at a single site of employment; or
- Lays off 500 or more workers at a single site of employment during a 30-day period or lays off 50-499 workers and the layoffs constitute 33% of the total workforce.
“Mini-Warn” Statute
Under Federal WARN employment losses that occur over a 90-day period also require 60 days’ notice. Thus, an employer is required to give advance notice if it has a series of small terminations or layoffs, none of which individually would be covered under WARN but which add up to numbers that would require WARN notice. Non-compliance penalties include back pay, daily civil penalties, and potentially attorneys’ fees.
- Ohio recently joined many states like California and New York by enacting a “mini-WARN” statute. Effective September 28, 2029, the law applies to:
- Employers with 100 or more employees working a combined total of at least 4,000 hours per week, and
- Engage in a plant closing or mass layoff involving 50 or more employees at a single site within a 30-day period.
The new Ohio law differs from federal WARN in that it does not include the 33% threshold (i.e., that layoffs impacting 50 – 499 workers must amount to at least 33% of the workforce), nor the 90-day aggregation rule for multi-faceted layoffs. Rather, notice must be given if there is a layoff of 50 or more employees within 30 days.
Notice Requirements & Timing
Employers in Ohio must send tailored notices to three distinct groups:
- Impacted Employees
- Union Representatives (if applicable)
- Government Agencies and Officials, including:
- The director of Ohio’s Job and Family Services
- The chief elected local official where the layoff is occurring, and
- The chief elected county official where the layoff is occurring
Correspondence to the above must include:
- The same content provided to employees or union reps,
- A description of mitigation efforts (like retraining or job placement),
- Names and addresses of employee organizations or unions involved,
- A copy of the notice already sent to employees or their representatives
Next Steps
Employers anticipating future employment decisions should contact counsel for guidance before conducting or announcing a significant personnel action. New Ohio law provides additional complexity and nuance for all employers to navigate, even those who have become accustomed to operating in compliance with federal law. In addition to statutory penalties, the negative and pervasive publicity following botched WARN and mini-WARN compliance can be catastrophic.
Contact
For help with mass layoffs, plant closures, significant personnel events or any day to day human resources challenges, please contact Beth Spain (BRS@kjk.com), David Campbell (JDC@kjk.com) or any member of KJK’s Labor and Employment practice group.