PEOs are up to date on ALL employment laws and regulations (both state and federal) and with a co-employment relationship comes peace of mind since the client and the PEO contractually share employer responsibilities and liabilities. Join us for our 5 part series, as we dive deeper into employment law – Are you equipped to manage compliance in-house? Do you already know about the following laws? Do they apply to your business?
Employment Law 101 – What is WARN?
Introduced to protect workers and their communities, WARN (Worker Adjustment and Retraining Notification Act) requires that employers with 100 or more employees provide a 60-day calendar notification in advance of a mass layoff or plant closing.
WARN covers not only full-time employees, managers and supervisors, but also hourly workers. WARN does not cover those who have worked less than six months in the past year, or those who work less than 20 hours per week though. WARN also does not cover federal, state and local government entities that provide public services.
Although WARN is administered at the federal level, some states have laws of their own when it comes to plant closures or mass layoffs.
How a PEO Can Help:
All laws aside, most employers would prefer to give advance notice to their workers so that their workers and their families have adequate transition time to seek and obtain other jobs. But, it isn’t always that easy. How do you tell your employees you’re closing in 60 days? What if they seek other employment starting today? What if they leave right now? You may still need to operate at full capacity over the next two months.
A PEO can make this dreaded process easier for you. They provide helpful tips and best practices when it comes to legally hiring and firing, employment regulations, and saving you the hassle of costly lawsuits. While the PEO themselves may be willing to manage this process depending on the details of your co-employment contract, at the very least they will provide access to HR experts to assist you in this process.