March 18, 2005 |
2005-R-0338 | |
JOB RELOCATION NOTIFICATION BILL | ||
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By: John Rappa, Principal Analyst | ||
You asked us to compare two pieces of legislation requiring businesses to notify workers about certain decisions that could affect their jobs—SB 358, AAC the Retention of Jobs in Connecticut and the federal Worker Adjustment and Retraining Notification Act (WARN).
The proposed bill and the federal law require businesses to notify employees in advance about specified actions that affect or could affect their employment. But, as Table 1 shows, they differ in several respects, including the actions and the conditions for giving notice.
The bill addresses decisions to relocate workers or the work they perform to sites outside Connecticut while WARN addresses plant closings or major layoffs. The bill applies to all businesses except farms and construction businesses. WARN makes no exceptions.
The bill and WARN set different notification periods and require different parties to get the notice. The bill requires businesses to give at least 90-days notice to the affected employees and the labor and economic and community development commissioners. WARN requires businesses to give at least 60 days notice to employee representatives or the affected employees if they have no representative. They must also notify the local chief elected official and the state agency that helps dislocated workers.
The bill and WARN set different conditions for notifying employees. The bill requires businesses to notify employees based on their total workforce and proportion of workers affected by the planned relocation. WARN’s conditions vary depending on the planned action (i. e. , plant closing or mass layoff).
The bill and WARN also impose different penalties. Under the bill, businesses pay a $ 1,000 per day fine if they fail to notify the required parties. Under WARN, businesses are liable for back pay and benefits to the affected employees and a $ 500 per day civil penalty to the local government.
Table 1: Comparison of SB 358 and Federal Worker Adjustment and Retraining Notification (WARN) Act
Provision |
SB 358 |
WARN |
Event |
Decision to relocate workers or the work they perform outside Connecticut |
Decision to close plant or cause a major layoff |
Affected Businesses |
People and organizations that own, operate, or control a business Owners include individuals, partnerships, associations, corporations, business trusts, and legal representatives, and local and state agencies Excluded: agricultural and construction businesses |
Businesses that employ: • 100 or more employees, excluding those working part-time (averaging less than 20 hours per week or employed for fewer than six of the 12 months before the required notice date) or • 100 or more employees whose total non-overtime work hours exceed 4,000 hours per week |
Requirement |
At least 90-days advance written notice of relocation to: • affected employees • labor commissioner • economic and community development commissioner No notice required for employees who will remain at their jobs after relocation |
At least 60 days before ordering a plant closing or mass layoff, employer must notify: • employee representatives or affected employees if they have no representatives • state dislocated worker unit • local chief elected official |
Notice Criteria |
• Businesses with fewer than 200 employees must give notice if the relocation affects 50% of the workers or the work they perform • Businesses with 200 or more workers if the relocation affects at least 25% of all employees or the work they perform |
Plant closing: • permanent or temporary shutdown of a single employment site or • several facilities or operating units within a single site if 50 or more full-time employees lose their jobs at a single site during any 30-day period Mass Layoffs: • job loss unrelated to plant closing and • results in a job loss at single site during any 30-day period for at least o 500 full-time employees or o 33% of the full-time employees and the total number of these employees is 50 or more Exemptions: • temporary closing or completion of temporary project • strike or lock-out not intended to evade notice requirement |
Fine or Penalty |
$ 1,000 per day |
• Back pay and benefits for aggrieved employees • $ 500 per day civil penalty to local government |
Other |
Fine revenue goes to the labor department to fund job retraining and placement and other worker assistance programs |
In a business sale: • seller responsible for notice until sales date • buyer responsible for notice after that date Notice requirement doesn’t apply to job loss resulting from relocation or consolidation if employer offered to transfer employee before closing or layoff to: • different job site within reasonable driving distance with no more than six-month break in employment or • any other site, regardless of distance, with no more than six-month break in employment and employee accepted offer within 30 days of offer or closing or layoff, whichever is later. Specified conditions for: • reducing notification period • giving notice when layoffs unexpectedly exceed six months • determining job loss at a single site involving two or more groups that separately do not meet the threshold for notification |
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