The IL and Federal WARN Acts-What are they and what do they require?

In today’s economy, Employers are often downsizing, relocating or transferring employees.  This often requires employers to follow the procedures outlined in the Federal and IL WARN acts.  Failure to follow the procedures in the Federal and IL WARN acts can result in a violation of the employee’s rights and imposition of significant penalties upon the employer.

Generally, the Federal and IL WARN Acts are analogous statutes that may require employers to give notice to their employees of mass layoffs or transfers.  However,  there are some significant differences between the IL and Federal WARN acts.  The following is a list of some of the major differences between the two Acts:

1) the IL WARN Act applies to employers with 75 employees or more, while the Federal WARN act applies to employers with a 100 plus employees;

2) The IL WARN act applies, when a regulated employer fires 25 employees, 1/3 of its full time work force, or 250 employees.  The Federal WARN act applies, when a regulated employer fires 50 employees, 1/3 of its full time work force, or 500 employees;

3) The Illinois WARN Act requires notice in the event of a “relocation”, but does not define “relocation”;

4) The Illinois WARN Act requires notice to government officials under the Business Economic Support Act (BESA), if the employer receives state or local funds; and

5) The Illinois WARN Act allows the IDOL to promulgate rules and to examine books to enforce the Act. 

See Publication on: Brief Summary of IL WARN Act  illinois-warn-act-summary

The WARN Acts are a hot issue in the current economic climate.   Ensuring compliance and figuring out your rights under the WARN Acts may be crucial to employees, employers, lenders, borrowers, and potential purchasers of a company.

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