Learn which companies are covered by the WARN Act and must provide advance notice of layoffs or plant closings. Prepare for the SHRM-SCP exam with our expert insights.
Table of Contents
Question
Which company is covered by the Worker Adjustment and Retraining Notification (WARN) Act?
Answer
A company that has had 50 full-time and 50 part-time employees working 30 hours a week over the last 12 months
Explanation
The Worker Adjustment and Retraining Notification (WARN) Act requires certain employers to provide at least 60 calendar days advance written notice of a plant closing or mass layoff. However, the WARN Act only applies to companies that meet specific criteria:
- Private for-profit businesses and private nonprofit organizations
- Companies with 100 or more full-time employees
- Companies with 100 or more employees, including part-time workers, who in aggregate work at least 4,000 hours per week (excluding overtime hours)
Full-time employees are defined as those working at least 20 hours per week and have been employed for at least 6 of the 12 months preceding the required WARN notice.
The incorrect answer option of 50 full-time and 50 part-time employees working 30 hours a week does not meet the employee threshold for WARN Act coverage. Companies must have at least 100 full-time employees or a combination of full-time and part-time employees totaling at least 100 with a minimum of 4,000 work hours per week.
Therefore, to be covered by the WARN Act and subject to its advance notification requirements, a company must have had 100 or more full-time employees over the last 12 months. HR professionals should be familiar with WARN Act applicability to ensure compliance and effectively communicate with affected workers during layoffs or plant closures.
SHRM Senior Certified Professional (SHRM-SCP) certification exam practice question and answer (Q&A) dump with detail explanation and reference available free, helpful to pass the SHRM-SCP exam and earn SHRM-SCP certification.