DSST Human Resource Management Exam Prep

Category - Free DSST HR Test Prep

When is an employer with 200 or more employees required to provide at least 60 days' notice for a mass layoff, according to the WARN Act?

  1. If the company lays off at least 5 employees a week for 3 months.
  2. A fire hits the plant and the company is forced to lay off employees until repairs are done
  3. The company is looking for more investors, but will be forced to lay off 50 people if more money does not come in
  4. The company hires a new CEO, who insists on restructuring the sales department
Explanation

Answer - A - According to the WARN act, an employer with 200 or more employees is required to provide at least 60 days' notice for a mass layoff if the company lays off at least 5 employees a week for 3 months.

Key Takeaway: The WARN Act (also known as the Worker Adjustment and Retraining Notification Act) is a labor law that protects employees and their families by requiring that most employers with more than 100 employees must provide at least 60 days' notice of plant closings and/or mass layoffs. Employees who are eligible for protection under the WARN Act are hourly wage workers, salaried workers, managers, and supervisors.

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