24Jun
School Bus Contractors and the Unintended Effect of the WARN Act
The Worker Adjustment and Retraining Notification (WARN) Act. 29 U.S.C. § 2101 et seq., passed in 1988, requires employers to provide employees with advanced notice of mass layoffs or plant closings. The advanced notice requirement is intended to help displaced workers find new employment, and there are significant penalties against employers for non-compliance. But, the notice requirements could be triggered in situations where a school district changes from one contractor to another. This has the unintended effect of imposing strict notice requirements and harsh penalties even when there is no plant closing or mass layoff as contemplated by the WARN Act. The “displaced” workers are normally hired by the incoming contractor. Continue reading for more information on how the WARN Act may apply to you.
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