NH Workers will receive more advance notice of mass layoffs and plant closures than required by federal law.

In response to some highly publicized and very sudden plant closures and mass layoffs that have plagued NH lately, the legislature enacted the NH Worker Adjustment and Retraining Notification Act (NH WARN).

SB-40 is based on the Federal WARN Act, but increases the number of employers who are subject to the Act and substantially increases the penalties for employers who do not comply with the notice requirements in the Act.

Both WARN Acts require 60 day notice to employees of any plant closure or mass layoffs subject to the Act, but NH has lowered the required number of affected employees from 50 employees being laid off to 25 (provided it is at least 1/3 of the full-time non-seasonal employees).

NH has also increased the number of employers subject to the Act by lowering the threshold from employers with at least 100 employees to 75. The NH WARN Act is estimated to affect some 300 more employers than the Federal Act.

An employer who fails to give notice of a mass layoff or plant closing, as required by this law, can be assessed a civil penalty of up to $2,500 and up to $100 per employee for each day of noncompliance, plus costs and attorneys fees. In addition, the NH Department of Labor is also permitted to place a lien on the employer’s revenues as well as all real and personal property of the employer to pay these assessments.

There are some narrow exceptions to the Act, most notably, a faltering employer who was actively seeking capital to avoid such layoffs and in good faith believed that notice of layoffs would preclude that capital investment.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

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