Eleanor Finch
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide advance notice of large-scale layoffs or facility closures. In Maryland, employers covered by the WARN Act must give at least 60 days' notice before initiating a mass layoff or plant closing. This notice must be provided in writing to affected workers, labor unions representing these workers, the State Rapid Response Coordinator, and the chief elected official of the local government where the employment site is located. The purpose of the act is to protect affected workers by giving them time to find new employment or seek retraining to minimize the economic impact of sudden job loss. Violations of the WARN Act in Maryland can result in penalties of up to $10,000 per day, significantly higher than the federal WARN Act penalty of $500 per day.
| Characteristics | Values |
|---|---|
| Notice period | 60 days |
| Who should be notified | Affected workers, labor unions representing these workers, the State Rapid Response Coordinator, the chief elected official of the local government, MD Labor's Dislocation Services Unit, employee representatives |
| Who does it apply to | Employers with 50 or more employees operating industrial, commercial, or business enterprises in Maryland |
| Penalty for non-compliance | Up to $10,000 per day, to be assessed by the Maryland Secretary of Labor |
| Events that trigger the act | Plant closings affecting 50 or more employees for at least 30 days, mass layoffs involving at least 500 full-time employees, mass layoffs involving at least 50 full-time employees (at least 33% of the workforce), plant closings or layoffs extended over 90 days, temporary layoffs extending over six months |
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What You'll Learn
Who should be notified
In Maryland, employers covered by the WARN Act must notify several parties in the event of a mass layoff or plant closing. These notifications must be made in writing and submitted at least 60 days before the anticipated action.
Firstly, employers must notify all affected workers. This includes providing information on the anticipated date of the layoff or plant closing and any relevant details regarding the employees' benefits and rights.
Secondly, notifications must be submitted to labour unions or employee representatives, such as a union or bargaining agency, representing the affected workers.
Thirdly, the State Rapid Response Coordinator and the chief elected official of the local government where the employment site is located must be notified. This includes submitting notifications to MD Labor's Dislocation Services Unit, which can be done via email or mail.
Additionally, in the case of a federal agency anticipating layoffs, notifications must also be sent to the Office of Personnel Management and other relevant Federal and non-Federal organizations.
It is important to note that the WARN Act applies to employers with a certain number of employees, typically 50 or more, and specific thresholds for layoffs or plant closings must be met for the Act to be triggered.
Failure to comply with the WARN Act may result in penalties and liabilities, including back pay and benefits to affected employees. The Maryland Secretary of Labor is responsible for issuing orders compelling compliance and assessing civil penalties for violations.
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When to notify
In Maryland, employers must provide at least 60 days' notice before a "mass layoff" or "plant closing". This is to allow employees time to prepare for the upcoming transition. A "mass layoff" is generally defined as a reduction in workforce that affects at least 50 employees at a single site of employment or at least 500 employees during a 30-day period. A "plant closing" occurs when an employer shuts down a single employment site or department, resulting in job losses for 50 or more employees over a 30-day period.
The State WARN Act, or Worker Adjustment and Retraining Notification Act, is a federal law that requires employers to provide advance notice of large-scale layoffs or facility closures. While Maryland primarily follows the federal WARN Act, it has also enacted its own version, the "mini-WARN" law, which captures more employers within its scope. The federal WARN Act covers employers with 100 or more employees, whereas Maryland's mini-WARN law covers employers with only 50 employees.
Maryland employers must notify the following parties 60 days prior to a mass layoff or plant closing:
- All employees at the workplace subject to the reduction
- Any exclusive representative or bargaining agency (e.g., a union) of the affected employees
- State agencies, such as the Maryland Department of Labor's Division of Workforce Development and Adult Learning's Dislocated Worker Unit
- All elected local officials in the area of the affected workplace
Additionally, employers must submit notification to MD Labor's Dislocation Services Unit and any employee representatives, as well as the chief local elected official of the impacted area. This notification can be submitted via email to dlwdalwarn-labor@maryland.gov or by mail to the Maryland Department of Labor.
Violations of the WARN Act in Maryland may result in penalties of up to $10,000 per day, assessed by the Maryland Secretary of Labor. These penalties are considerably higher than the federal WARN Act's penalty of $500 per day for failure to notify the chief elected official.
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Penalties for non-compliance
The Maryland WARN Act mandates that employers provide a minimum of 60 days' advance written notice before a mass layoff or plant closure affecting at least 50 employees. This notice must be given to affected workers, labour unions, the State Rapid Response Coordinator, and the chief elected official of the local government. Failure to provide sufficient notice or include all required information in the WARN notice can lead to penalties.
Violations of the Maryland WARN Act may result in the following penalties:
- Liability for back pay and benefits to affected employees: Employers may be required to compensate employees for each day the notice was insufficient or for the period of non-compliance.
- Civil penalties: The revised Maryland mini-WARN law includes a civil penalty of up to $10,000 per day, assessed by the Maryland Secretary of Labor, for failing to provide the required notices to all necessary parties. This is a significant increase from the comparable federal WARN Act penalty of $500 per day for failing to notify the chief elected official.
- Legal action: Employers must settle liabilities with affected employees within three weeks of closure or layoff. Failure to do so may result in individual or class-action lawsuits in the U.S. District Court.
To ensure compliance and avoid penalties, employers are encouraged to seek legal counsel and carefully review the specific requirements and exemptions of the Maryland WARN Act.
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Layoff notice requirements
In Maryland, employers are required to give at least 60 days' notice before initiating a "mass layoff" or "plant closing". This is to allow employees time to prepare for the upcoming transition. The WARN Act, or Worker Adjustment and Retraining Notification Act, is a federal law that requires employers to provide advance notice of large-scale layoffs or facility closures.
The purpose of the law is to protect affected workers by giving them time to find new employment or seek retraining to minimize the economic impact of sudden job loss. While some states have additional WARN laws, Maryland primarily follows the federal WARN Act unless modified by local regulations. This means that Maryland employers with large workforce reductions must comply with federal guidelines to ensure lawful layoffs.
Maryland's mini-WARN law covers employers with 50 employees, whereas the federal WARN Act covers employers with 100 or more employees. The mini-WARN law also applies to employers with 50 or more employees operating industrial, commercial, or business enterprises in the state. The law requires a covered employer to provide written notice to affected parties 60 days before initiating a reduction in operations. Notice must be given to all employees at the workplace subject to the reduction, any exclusive representative or bargaining agency (e.g. a union) of the affected employees, state agencies, and all elected local officials in the area of the affected workplace.
The Maryland Economic Stabilization Act (ESA) is similar to the WARN Act in that it requires 60 days' advance written notice of reductions in force, but there are some key differences between the federal and state requirements for RIFs in Maryland. For example, the ESA applies to employers with 50 or more employees and includes certain exceptions, such as "faltering" companies and natural disasters. Employers are not required to provide advance notice under the law if a reduction in force is the result of a labour dispute.
Violations of the WARN Act may result in back pay for affected employees and penalties of up to $500 per day of violation. Employers must settle liabilities with aggrieved employees within three weeks of closure or layoff; otherwise, they could face individual or class-action lawsuits. The revised Maryland mini-WARN law includes a civil penalty of up to $10,000 per day, to be assessed by the Maryland Secretary of Labor, for failure to provide the required notices to all necessary parties.
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Closure notice requirements
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide advance notice of large-scale layoffs or facility closures. Maryland primarily follows the federal WARN Act, with some additional requirements.
Maryland's WARN Act requires employers to provide a minimum of 60 days' advance notice in writing before a significant layoff or plant closure. This period gives employees time to prepare financially and explore new employment or retraining opportunities.
The Maryland WARN Act applies to employers with 50 or more employees, whereas the federal WARN Act applies to employers with 100 or more employees. The state law also requires notice to all elected local officials, while the federal law requires notice only to the single chief elected official.
In addition to providing notice to affected employees, employers in Maryland must notify the following parties:
- All employees at the workplace subject to the reduction
- Any exclusive representative or bargaining agency (e.g. a union) of the affected employees
- State agencies, such as the Maryland Department of Labor's Division of Workforce Development and Adult Learning's Dislocated Worker Unit
- All elected local officials in the area of the affected workplace
The Maryland WARN Act also includes specific notice requirements, such as providing a supervisor's contact information (name, telephone number, and email address) and a statement explaining whether the reduction is permanent or temporary and whether the workplace is expected to shut down.
Violations of the WARN Act in Maryland can result in penalties of up to $10,000 per day, assessed by the Maryland Secretary of Labor. These penalties are significantly higher than the federal WARN Act's penalty of \$500 per day for failing to provide notice to the chief elected official.
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Frequently asked questions
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide advance notice of large-scale layoffs or facility closures.
The law aims to protect affected workers by giving them time to find new employment or seek retraining to minimize the economic impact of sudden job loss.
In Maryland, employers covered by the WARN Act must give at least 60 days' written notice before initiating a "mass layoff" or "plant closing". This notice must be provided to all affected workers, labor unions representing these workers, the State Rapid Response Coordinator, and the chief elected official of the local government where the employment site is located.
Violations of the WARN Act in Maryland may result in penalties of up to $500 per day of violation, including liability for back pay and benefits to affected employees. The state secretary of labor can also issue orders compelling compliance and fines of up to $10,000 per day, with a potential total of $600,000.
Yes, there are specific situations where exemptions apply, such as unexpected events or financial challenges outside the employer's control, including economic downturns, market shifts, or natural disasters.
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