Learn how the Worker Adjustment and Retraining Notification (WARN) Act safeguards employees displaced by corporate mergers involving 100+ workers. Expert SHRM-SCP exam question and answer.
Table of Contents
Question
Which legislation protects workers displaced in the merger of two corporations with at least 100 employees?
Answer
Worker Adjustment and Retraining Notification Act. If a merger of two corporations results in layoffs, the Worker Adjustment and Retraining Notification (WARN) Act indicates that workers must be given a 60-day notice prior to the layoff.
Explanation
The Worker Adjustment and Retraining Notification (WARN) Act protects workers who are displaced as a result of a merger between two corporations that each have 100 or more employees.
Under the WARN Act, employers must provide at least 60 calendar days of advance written notice prior to a plant closing or mass layoff that will result in an employment loss for 50 or more employees at a single site of employment. The notice must be provided to either affected workers or their representatives (such as a labor union), to the State dislocated worker unit, and to the appropriate unit of local government.
The WARN Act applies to companies with 100 or more full-time employees, so it would cover workers impacted by a merger of two such corporations. The 60-day advance notice gives workers time to seek other employment or enter training programs before losing their jobs. There are some exceptions to the 60-day requirement for faltering companies, unforeseen business circumstances, and natural disasters.
So in summary, the WARN Act is the key piece of legislation that would protect workers displaced by the merger of two large corporations by mandating that 60 days of advance notice be provided before the layoffs occur. This allows affected employees to prepare and adjust their plans before losing their employment.
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.