Senators offer Fair Warning Act
Bill would give workers more notice of layoffs.
If businesses want to shut down for good, a new bill would require them to warn their employees at least two months in advance.
Senate Minority Leader Chuck Schumer and Sen. Sherrod Brown, DOhio, introduced legislation last week that aims to prevent companies from laying off staff members without notice. This includes part-time and full-time employees, according to Restaurant Business.
The proposed changes come after restaurant chain Friendly's shut down 23 upstate New York locations this year and laid off hundreds of employees without warning.
The Senate proposal would increase the number of companies that have to give employees 60 days' notice of an impending layoff.
The bill would amend the WARN (Worker Adjustment and Retraining Notification) Act, which requires a 60-day layoff notice at companies with more than 100 employees.
Schumer's revisions would lower the threshold to businesses employing more than 50 people.
"The Fair Warning Act would hold employers accountable for their business decisions and ensure workers and their families get the notice they need to prepare for and respond to layoffs," said Schumer. "This legislation will help put some power back in the hands of workers across the country."
The bill would require a notice if a closing affects five or more employees.
The law also would apply to any business with a payroll of at least $2 million.
Violators would be obligated to provide back pay and benefits.