I.Purpose

This letter provides guidance to local elected officials and Workforce Development Agencies (WDAs) on layoff requirements, available programs, best practices and contact information. The guidance enables response to employer and employee requests regarding federal/state programs and requirements. These programs and requirements include the Worker Adjustment and Retraining Notice (WARN), Unemployment Compensation (UC), Trade Adjustment Assistance (TAA), North American Free Trade Agreement (NAFTA), Ohio Department of Development's Ohio Industrial Training Program (OITP), United States Department Of Labor (USDOL) National Emergency Grants (NEG) or other targeted dislocated worker programs. Local areas should coordinate WlA dislocated worker services with these programs.

Workforce development agencies (WDAs) learn about business closings and employee layoffs in many ways. These ways may include telephone calls, media reports or official WARN notices. Many times the employer and employees are unsure how to contact agencies designated to address these situations.

II.Effective Date

Immediately

III.Guidance Statement

Local areas must establish a process to address calls from employers or employees requesting information about these programs. This process will insure that both employers and employees contact the appropriate ODJFS sections. This process also supports employer compliance with federal and state legislation. The following technical assistance is offered to help workforce development agencies serve their local employer and employee community. You may wish to make this information available to staff.

IV.Technical Assistance Practice

The Workforce Investment Act (WIA) encourages early intervention in these closing or layoff events. This guidance does not mean the local areas cannot begin providing WIA services. Employer and employee referral to ODJFS sections specified below must be an integral part of this process.

Some local areas have established a process. These local areas have designated a local or regional "Rapid Response Coordinator" who responds to business closings and employee layoffs. Predominantly, this coordinator serves as the primary contact to the employer, employees, community groups and ODJFS sections. This best practice eliminates confusion for the employer and employee. The practice also streamlines communication within the workforce development system. This coordinator already serves as a referral source to connect employers to local and state programs and requirements.

Local areas may want to use a similar process or create a more customized approach. Whatever the approach, the process needs to insure clear direction to the employer and employee community. Companies and impacted workers may suffer additional losses without referral to the appropriate ODJFS sections.

Coordination with other State and Federal Programs

Local areas need to be aware of programs to assist employers and dislocated employees. Employer and employee groups may be required/eligible for company or industry specific targeted programs or requirements.

• Worker Adjustment and Retraining Notification (WARN)

If an employer is conducting a "mass layoff" (separating 50 or more employees), the employer may be required by law to file WARN. The WARN Act language can be found under the Reference section of this letter. For more information on WARN, please contact the Rapid Response Unit at (614) 466-3817.

• Unemployment Compensation Delivery

Whenever an employer separates 50 or more individuals within a seven-day period due to lack of work, the employer is required to furnish notice to Ohio Department of Job and Family Services. This notice includes the dates of separation and the approximate number of individuals being separated at least three days before the layoff occurs. The UC Technical Services Section of ODJFS is responsible for the processing of mass layoffs. In most cases, the employer submits a letter or verbally notifies to either the UC Technical Services Unit or the local ODJFS office. This notification starts a legal process for efficient distribution and collection of UC applications. This process speeds employee registration for UC benefits. For more information, please contact the UC Technical Services Unit at (614) 466-4568.

• Trade Adjustment Assistance (TAA), North American Free Trade Agreement (NAFTA)

These programs are available to employees who loose their jobs as a result of imports. To be eligible for services, individuals must be dislocated from a company, which has been certified by the USDOL as being impacted by foreign imports. The program may offer placement assistance, training and income support. For more information, please contact the TAA/NAFTA Section at (614) 644-2706.

• Ohio Department of Development's Ohio Industrial Training Program (OITP)

OITP funds have been awarded to assist companies and employees impacted in the steel industry. This program provides financial assistance and technical resources for customized training involving employees of new and expanding Ohio businesses. The community benefits through job creation and retention; increased productivity; improved labor/management relations and a highly skilled labor pool. The funding may be used to cover the cost of up to 50% funding for the cost of instruction and instructional materials. Additional benefits include between 25-50% reimbursement for special needs, including train-the trainer, curriculum development and assessment. The program emphasis is on manufacturing. This program creates or retains jobs and must have significant training and capital investment. For more information, please contact OITP at (614) 466-4155.

• National Emergency Grants

The USDOL also awards National Emergency Grants (NEG) to specific populations (i.e. coal miners, etc.). These NEG grants also offer long-term income support, training and placement assistance. These grants may or may not be operated through the workforce development agencies. The application for these funds must be submitted through the ODJFS Bureau of WIA. These applications must meet both USDOL and state requirements. For further information, please review Workforce Investment Act Guidance Letter 3-2001.

V.Reference

WARN Notice

The Worker Adjustment and Retraining Notification Act (WARN) of 1988 (United States Public Law 100-379) requires certain employers to give at least 60 days notice of layoffs or plant/facility closings. Notice must be given to the state Dislocated Worker Unit, local government and employees. Failure to do so makes an employer liable to each aggrieved employee for back pay for each day of violation and benefits. In addition, any such employer can be subject to a civil penalty. The ODJFS Rapid Response Unit is designated as Ohio's Dislocated Worker Unit.

WARN provides protection to employees, their families and communities by requiring employers to provide notification 60 calendar days in advance of plant closings and layoffs. Advance notice provides employees and their families some transition time to adjust to the prospective loss of employment, to seek and obtain alternative jobs and, if necessary, to enter skill training or retraining that will allow these employees to successfully compete in the job market. WARN also provides for notice to State dislocated employee units so that dislocated employee assistance can be promptly provided.

Who is covered?

In general, employers are covered by the Worker Adjustment and Retraining Notification Act (WARN or the Act) if they have 100 or more employees, not counting employees who have worked less than 6 months in the last 12 months and not counting employees who work an average of less than 20 hours a week. Regular federal, state and local government entities that provide public services are not covered. Employees entitled to notice under WARN include hourly and salaried employees, as well as managerial and supervisory employees.

Basic Provisions/Requirements

A covered plant closing occurs when a facility or operating unit is shutdown for more than 6 months, or when 50 or more employees lose their jobs during any 30-day period at the single site of employment. A covered mass layoff occurs when a layoff of 6 months or longer affects 500 or more employees, or 33 percent or more of the employer's workforce when the layoffs affect between 50 and 499 employees. The number of affected employees is the total number laid off during a 30-day, or in some cases a 90-day period.

WARN does not apply to the closing of temporary facilities or the completion of an activity when the employees were hired only for the duration of that activity. WARN also provides for less than 60 days notice when the layoffs were the result of the closing of a faltering company, unforeseeable business circumstances, or a natural disaster.

Enforcement of WARN requirements is through the United States district courts. Employees, or their representatives, and units of local government may bring individual or class action suits. The Court may allow reasonable attorney's fees as part of any final judgement. Since the Department does not have administrative or enforcement authority under WARN, it cannot provide specific advice or guidance with respect to individual situations. WARN is in addition to, and does not preempt any other federal, state or local law, or any employer/employee agreement, which requires other notification or benefit.

Mass Layoff - Ohio Revised Code Section 4141.28 (C)

"Whenever an employer separates 50 or more individuals within a seven-day period due to lack of work, the employer is required to furnish notice to Ohio Department of Job and Family Services. This notice includes the dates of separation and the approximate number of individuals being separated at least three days before the layoff occurs."

Rescissions: None

Distribution: WlA Guidance Letter

Expiration Date: Continuing