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Budzinski Introduces Fair Warning Act to strengthen advance notice requirements for layoffs

Nov 13, 2023 | 5:30 AM

November 11, 2023 – Following the closure of Akorn Pharmaceuticals that left more than 400 workers jobless without the advance notice required by law, Congresswoman Nikki Budzinski has introducing the bicameral Fair Warning Act – legislation that ensures workers and communities receive proper notice in the event of layoffs. The bill strengthens the existing Worker Adjustment and Retraining Notification Act (WARN Act) to hold companies accountable for employment decisions impacting the livelihoods of workers and their families.

“Earlier this year, Akorn Pharmaceuticals left working families high and dry when they violated the WARN Act with a surprise closure of their Decatur facility. While I’m glad that a new employer has taken over the facility, it’s clear that we need to do more to protect workers and their families from unexpected layoffs,” said Congresswoman Budzinski. “I’m proud to be leading bicameral legislation with Senator Sherrod Brown and Representatives Emilia Sykes and David Trone to strengthen advance notice requirements and ensure that companies are treating working people with the dignity and respect they deserve.”

While the WARN Act, established in 1988, requires certain companies to provide full-time employees with WARN notices in some circumstances, in too many cases, existing law doesn’t apply, or companies fail to follow the rules, and workers get left behind.

The Fair Warning Act would update current law by:

  • Updating the statute so the requirements under the law apply to any business that employs 50 or more employees or has an annual payroll of $2 million;
  • Updating definitions to ensure the legislation also covers an employer’s affiliate if they violate the WARN Act;
  • Closing loopholes in notification requirements by expanding the cases where notification is required and including both full-time and part-time employees in thresholds;
  • Increasing the lead-time for mass layoff or site closure notifications from 60 days’ notice to 90 days’ notice to provide workers, their families, and the community with advance notice;
  • Requiring the state to establish a Rapid Response committee and an individual to lead that committee within 20 days of a WARN notice being issued so that affected employees can quickly get the training and other support services they need to prepare for their job loss;
  • Strengthening enforcement provisions under the law to enhance compliance;
  • Protecting employees’ rights to bring suit if their employer violates their WARN Act rights; and
  • Requiring the Department of Labor to create and make public a searchable database of all WARN notices.