Los Angeles partner David Raizman addressed issues surrounding WARN Act compliance for shuttered businesses in an article on the Society for Human Resource Management website.
The article also addressed issues surrounding state Worker Adjustment and Retraining Notification and wage and hour laws in light of recent layoffs at Cisco and Borders' decision to close its doors for good.
David, a partner in the Labor & Employment Practice Group, said companies facing financial hardship must be careful in how they treat their employees to safeguard themselves.
"Every time you have any substantial employment loss you need to be thinking of the WARN Act," David said.
He added: "If you don't have an urgent need to shut the business and you can provide the 60-days' notice, you can escape" liability under the federal law.
David said that, in addition to the federal law, many states have WARN laws. Some of these laws impose notice requirements different from those imposed by the federal act.
"Be mindful of state laws. Be mindful of where your business is operating," he said.
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