News from New York State Department of Labor

For more information contact: Leo Rosales, 518-457-5519

DoL Announces Legislation Requiring Long Island Companies to Give 90 Day Layoff Notice or Face Strict Penalty

New York’s Worker Adjustment and Retraining Notification Act’s Provisions Among the Most Stringent in the Nation

ALBANY, NY (09/26/2008; 1157)(readMedia)-- State Labor Commissioner M. Patricia Smith, joined by local officials at an event in Patchogue today announced the signing of the State Worker Adjustment and Retraining Notification (WARN) Act by Governor David A. Paterson. The state law, which was sponsored in the Assembly by Long Island Assemblywoman Patricia Eddington, will provide more advance notice to workers facing layoffs than under the federal WARN law. It requires private employers with 50 or more workers to notify employees and the Department of Labor at least 90 days prior to a plant closing or mass layoff. Businesses that fail to file a WARN notice in the allotted time period will be subject to penalties of up to $500 per day for each violation. The new law also gives the Commissioner the authority to order relief, including back wages and unpaid medical benefits, for employees who don't receive the required notice.

The need for a stringent law at the state level comes on the heels of a number of companies closing their doors in recent years and giving their workers little or no prior notification. The federal WARN Act only applies to companies that employ 100 or more workers and requires only 60 days notice to these workers. The federal law also lacks an administrative enforcement mechanism, leaving workers facing job loss to sue their employers privately. The new law will close this loophole, which has allowed employers that fail to provide workers with a timely WARN notice to escape liability for their violations.

"For too long, workers in New York, given no notice in the face of immediate layoffs, have been unintentional victims of a federal law with limited enforcement provisions," said Commissioner Smith. "This important legislation signed by Governor Paterson will ensure that many more workers in New York State are afforded the courtesy of advance notice by their employer. Just as important, those employers who don't play by the rules will be sanctioned accordingly."

"Ensuring greater protections for workers facing layoffs is vital," said Assemblywoman Patricia Eddington. "Providing additional days to help affected employees find future employment, or simply time to search out health care options for their family, is necessary to guarantee some sort of security in these uncertain economic times."

On Friday, August 3, 2007, 1,500 workers at American Home Mortgage, a mortgage loan originator based in Melville, worked their last day on the job. The day before, workers at the company received an email saying something along the lines of: "I'm sorry, but tomorrow will be your last day." Almost three weeks later, a WARN notice was filed, which is known as a "backdoor" WARN notice. The Labor Department issued a press release letting workers know where they could go for help. Department staff also heard from a contact at the company that some employees had set up a YAHOO group for affected workers, and reached out to this group via email to let them know of the agency's services. As unemployment claims started to come in, the Labor Department was able to track down more workers, and sent them information on an upcoming job fair. In all, 80 employers and 750 job seekers showed up, but this number included people laid off from other firms as well. Later on, a list of employee names was provided by the company and the Labor Department was able to send a mass mailing to affected workers, inviting them to informational meetings at One-Stop Career Centers across Long Island. The Labor Department did the best it could in a short amount of time.

On the other end of the spectrum, GED Integrated Solutions, a window industry manufacturer located in Hauppauge, filed a WARN notice with the Department of Labor in January of 2007, announcing that it would be laying off 54 workers. Because of the time allowed, the Department of Labor was able to work directly with the company on behalf of the workers. Staff did research on companies that were looking to hire workers with similar skills, and brought these companies to a job fair on-site at GED Integrated Solutions. Workshops were conducted as well, and the majority of employees attended. Most of them left the job fair with a lead on a new job. The Labor Department continued to work with the company until it closed in March, and worked with employees on an ongoing basis at our One-Stop Centers throughout Long Island after the company closed its doors.

The WARN Act is widely viewed as a good business practice that provides displaced employees with more time to prepare for layoffs, thus increasing the chances that they will find a new job in a reasonable amount of time. It gives rapid response teams at the state and local levels more time to assist affected employees through targeted job fairs and recruitments, and offers the Department of Labor ample time to meet with employees to talk about the unemployment insurance process, services provided at local One-Stop Career Centers, and essential training/retraining services. When there is no notice, it is more difficult for the Department of Labor to coordinate with displaced workers on re-employment services. This increases the time they may spend collecting unemployment insurance.

Commissioner Smith thanked Governor Paterson and both houses of the State Legislature, including the bill's sponsors, Assemblywoman Patricia Eddington and Senator Joseph Robach, for their tremendous bipartisan support of the bill.

She also commended Senator Hillary Rodham Clinton for bringing this national issue to the Labor Department's attention, and thanked her for her continued push for stronger WARN provisions for workers across the state and nation.

Senator Clinton said, "I applaud Governor Paterson, Commissioner Smith, and the New York State Legislature for enacting this important legislation to protect workers and their families from the harmful effects of plant closings and mass layoffs. This legislation will ensure that workers about to lose their jobs receive the fair notice they and their families need and deserve. I have sponsored similar legislation with my colleagues at the federal level, and New York's law will serve as a model for the rest of the nation on how to give workers the protections they need in a time of economic uncertainty."

Assemblymember Susan John, Chair of the Assembly Committee on Labor, said, "I applaud Governor Paterson for signing this important legislation into law. New York is taking the lead to ensure that hard-working men and women are protected when an employer downsizes their workforce. In today's economic climate, the sooner an employee knows of an impending layoff, the sooner they can prepare to take the steps necessary to provide for their family. I am pleased to join my colleagues and the Commissioner in safeguarding our hardworking families' financial future."

For more information, please visit www.labor.ny.gov.

###