Posted on March 14th, 2019
Find a full transcript of this video below.
What’s up, fellow entrepreneurs? Today I wanted to talk about the WARN Act. The WARN Act is the Workers Adjustment and Retraining Notification Act.
So there’s a Federal version and there’s a California version, but the California version, that’s the one I’ll be talking about today, basically takes the Federal version and adds things to it.
So, what is it? Well, it’s a requirement in law that if you’re a company with 75 employees or more and you’re going to layoff at least 50 people within a 30 day period, that you have to give 60 days warning of the layoff. It also applies to any type of relocation of the business that’s 100 miles or more.
So, you would think that you could just go out of business, but if you’ve got a company that’s 75 people or more, you can’t. You basically have to warn your employees, if you fit the criteria I just talked about, or the penalties are up to $500 a day per employee per day of violation. Quite a bit of money.
On top of that, all back pay and also any benefits that they would have been entitled to.
So, the WARN Act is pretty serious stuff and there are some exceptions to it. I think if it’s seasonal you don’t have to comply with the WARN Act.
If it’s part of a motion picture that’s being wrapped up, you don’t have to … What are some of the other exceptions I’m trying to think off the top of my head?
Oh, yeah, and if you were attempting to get financing for your company and warning of a layoff would have interfered with that financing, that could be an exception to the WARN Act also.
All right, guys. So, look out for all of these strange laws that California throws at you.
Well, this one’s also Federal, so I won’t just blame California for this one.
Thanks, everybody. Till next time.
