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. The law’s purpose 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 otherwise modified by local regulations. This means that Maryland employers with large workforce reductions must comply with these federal guidelines to ensure lawful layoffs.
At Flood Law, we are a trusted authority in employment law and can provide guidance on WARN Act compliance, protecting employees’ rights, and supporting businesses with lawful layoff processes.
Need clarity on the WARN Act Maryland? Learn about layoff notice requirements and what notice obligations employers must provide. Contact our Rockville employment lawyer today!
Overview of the WARN Act in MD
In Maryland, employers covered by the WARN Act must give at least 60 days’ notice before initiating a “mass layoff” or “plant closing” to allow employees time to prepare for the upcoming transition.
The WARN Act serves an essential purpose: by requiring advance notice, the law aims to minimize the economic impact on employees and communities. This notice period gives affected workers the opportunity to adjust their financial plan, begin a job search, and, if necessary, pursue retraining options.
Without this advance warning, employees facing sudden unemployment would have little time to secure a new position or adjust their financial plans, potentially leading to significant economic hardship.
Under the WARN Act, a “mass layoff” generally refers to a reduction in workforce that affects at least 50 employees at a single site of employment within a 30-day period if these employees make up one-third or more of the site’s workforce or if at least 500 employees are affected regardless of percentage.
A “plant closing” occurs when a single site of employment is permanently or temporarily shut down, resulting in job losses for 50 or more employees over 30 days. The WARN Act applies to employers with 100 or more full-time workers and is intended to provide support during significant employment changes.
At Flood Law, we assist both executives and employers to understand and work through the WARN Act requirements. Our team is here to help ensure compliance and protect the rights of those who file a legal claim under the act.
Maryland WARN Act Requirements For Employers & Executives
The WARN Act outlines specific criteria for both employers and employees to determine who is covered under the law. Below is a breakdown of the main requirements and exclusions.
Employers must meet certain criteria to be subject to WARN Act requirements, including:
- Private employers with 100 or more full-time employees.
- Employers with a workforce that, when combined, works at least 4,000 hours per week (excluding overtime).
These criteria ensure that large-scale employers provide necessary notice in the event of significant layoffs or closures.
Employees eligible for WARN Act protections typically include:
- Full-time employees impacted by a covered layoff or plant closure.
- Employees who work at least 20 hours per week and have been employed for at least six months within the last 12 months.
Part-time employees are generally not covered under WARN protections, nor are independent contractors.
Certain employers are also not covered by the WARN Act, including:
- Government entities, such as federal, state, and local governments.
- Small employers with fewer than 100 employees who do not meet the weekly work-hour threshold.
Flood Law can help clarify WARN Act coverage for both employers and employees so that rights and obligations are fully understood.
Trigger Events for WARN Notification
The WARN Act outlines specific events that require employers to issue a 60-day advance notice to employees and local/state entities. These “trigger events” are designed to provide workers adequate time to prepare for the financial and career impacts of job loss.
Here are the primary scenarios where WARN notification is required:
- Mass Layoffs: The WARN Act defines a mass layoff as any reduction in workforce affecting either 50 or more employees at a single employment site within a 30-day period, or one-third of the workforce, whichever is smaller.
- Plant Closings: A plant closing occurs when an employer shuts down a single employment site or a department within it, resulting in job loss for 50 or more employees over a 30-day period. This applies to both permanent closures and temporary shutdowns that result in the layoff of 50+ workers.
- Temporary Layoffs Extending Over Six Months: Even temporary layoffs can trigger WARN notification requirements if the layoff period extends beyond six months.
Maryland Layoff Notice Requirements
The federal WARN Act, which applies in Maryland, requires employers to provide a minimum of 60 days’ advance notice before a significant layoff or plant closure. This advance notice allows employees time to prepare financially and explore new employment or retraining opportunities.
60-Day Requirement:
Employers must give at least 60 days written notice before the effective date of a layoff or plant closure. This rule applies to qualifying events, such as mass layoffs or plant closings, and aims to reduce the impact of sudden job loss on employees.
The WARN notice must include specific information to meet compliance standards:
- Date of layoff/closure
- Contact information for follow-up
- Statement on whether the layoff is temporary or permanent
- Job titles and number of affected positions
These details help employees make informed decisions about their next steps. Failure to include all required information in the WARN notice may lead to penalties, including liability for back pay and benefits to affected employees.
Confused about the WARN Act in Maryland? The act requires employers to follow specific notice rules, but it does not provide protections in every situation. Contact our Washington DC employment lawyer to learn more!
Exemptions to the Maryland WARN Act
The Maryland WARN Act, aligned with federal Worker Adjustment and Retraining Notification (WARN) Act guidelines, also requires employers to provide a 60-day notice for mass layoffs or plant closures. However, specific exemptions apply, allowing flexibility in cases of unexpected events or financial challenges.
Now, let’s take a look at some of the key exemption types and how they function:
Unforeseeable Business Circumstances
This exemption covers sudden and unexpected business events that are outside the employer’s control, such as an economic downturn, market shift, or the sudden loss of a major client.
If these unforeseen circumstances directly cause the need for layoffs, the WARN notice requirement may be waived or reduced. Employers, however, are still expected to provide as much notice as possible to affected employees, even if they cannot meet the full 60-day requirement.
Natural Disasters
In the event of natural disasters, such as hurricanes, floods, earthquakes, or other catastrophic events, employers may be exempt from providing the usual 60-day notice. Since these events are often unpredictable and can lead to immediate closures or significant layoffs, the WARN Act recognizes the impracticality of prior notice in such cases.
While employers are permitted flexibility, they must notify employees as soon as possible once the extent of the disaster’s impact on employment is clear.
“Faltering Company” Exception
This exemption applies to employers who are actively seeking additional capital or business to prevent closure. If a company is facing financial instability but is working to secure funding, investors, or clients to continue operations, the WARN Act may waive the full 60-day notice requirement.
This exemption is intended to avoid jeopardizing sensitive business negotiations that could prevent layoffs. Employers must show genuine efforts to obtain financing, and they should still provide employees with as much notice as is feasible to prepare for potential layoffs.
While each of these exemptions provide flexibility, employers are still encouraged to be transparent and provide notice whenever possible. Compliance with the WARN Act is vital, and failure to demonstrate a legitimate exemption can result in penalties.
Employers who believe they may qualify for an exemption should consult with legal counsel to ensure they meet all requirements and avoid unintended violations. Flood Law can help employers understand the nuances of the Maryland WARN Act and advise on exemptions.
Contact us for guidance on complying with Maryland layoff notice requirements or to address any specific 2024 WARN Act-related concerns.
Legal Remedies and Penalties for Non-Compliance With the Maryland Layoff Notice
Under the Maryland WARN Act, executives have specific rights if their employer fails to provide the required layoff notice.
Executive Rights:
If an employer does not comply with the WARN Act, affected employees may be entitled to compensation, including back pay and benefits for each day the notice was insufficient. Back pay is based on what the employee would have received had they worked during the notice period, allowing them financial security while they adjust to the sudden employment loss.
Employer Penalties:
Non-compliance with the Maryland WARN Act can lead to serious financial penalties for employers. Possible consequences for employers include:
- Payment of back pay to affected employees for each day the employer fails to provide adequate notice, up to 60 days.
- Health benefits compensation, including medical expenses that employees would have incurred during the notice period if they had been given timely notice.
- Potential liability for civil penalties if the employer’s non-compliance is found to be intentional or grossly negligent.
In addition to financial repercussions, the Maryland Department of Labor may intervene to enforce WARN Act compliance, further increasing the potential consequences for non-compliant employers. If you suspect that your employer has not adhered to the Maryland WARN Act requirements, consulting with one of our experienced attorneys is essential.
At Flood Law, we can help you determine if a violation has occurred and guide you through the process of securing compensation owed to you. Our team is here to support employees’ rights and ensure that employers fulfill their legal obligations under the WARN Act.
Is There a WARN Act Statute of Limitations?
Yes, the WARN Act has a statute of limitations, but it is not explicitly stated within the act itself. Courts generally apply the most closely related state statute of limitations, which can vary, but is often interpreted as three years in Maryland, as this aligns with other employment-related claims.
Filing within this timeframe is necessary to preserve your right to seek compensation for lost wages and benefits due to insufficient layoff notice. For timely and effective support, consult with one of our knowledgeable attorneys who can help with the legal procedures and protect your rights.
Looking into the WARN Act in Maryland? Learn what the WARN Act does not provide and what it requires. Contact our Rockville employment lawyer today for clear guidance on layoff notice requirements.
Contact Our Employment Lawyer at Flood Law in Maryland
At Flood Law, our expertise in employment law, particularly in areas concerning the Maryland WARN Act, offers you strong support in dealing with layoff notice requirements, back pay claims, and other WARN-related issues. We are dedicated to helping you understand your rights, evaluate your options, and provide guidance on how best to proceed.
If you need advice on WARN Act requirements, contact Flood Law at (240) 403-2619 for a consultation. Our team is here to help you pursue any compensation owed to you and to protect your rights.