The state’s Dislocated Workers Act requires employers of 50 or more employees to provide a 60-day plant closing notice to workers, but it does not apply to reduction of work hours if there is no termination of employment and no business transaction such as a sale is taking place, according to Elaine Young of the Dept. of Labor and Industrial Relations Workforce Development Division. Young and her staff members, as well as Perry Confalone, Christopher Cole, and John Khiel of Carlsmith Ball LLP were featured speakers at HEC’s program on Downsizing: What You Need to Know on January 14.

Short of bankruptcy, if a business needs to conduct layoffs due to financial reasons such as lack of business, the 60-day notice is not required, but “in the spirit of the law” employers should try to provide as much advance notice as possible to help their workers, Young observed. Employers who are closing due to bankruptcy are required to provide the 60-day notice.

Attorney Confalone recommended that employers follow a well-thought-out process of identifying and documenting criteria for any reduction in force to reduce liability and avoid RIF wrongful discharge claims.