Marc A. Mandelman, a Member of the Firm in the Labor and Employment practice, in the firm’s New York office, was quoted by Bloomberg BNA, in “New York Published Emergency Rules for 2008 WARN Act, Citing Layoff Pace.”
Follow is an excerpt:
Calling the New York law “one of the most restrictive advance notification laws in the United States,” Mandelmansaid in an interview that it is “making it more complicated to effectuate the reductions and reorganizations that are happening with increasing frequency and depth these days.”
The timing of the law and the economic climate, he told BNA, have created a “perfect storm of circumstances” that could leave employers vulnerable.
Most large, sophisticated employers have had the law “on their radar screens” since it was signed in August 2008, but smaller employers—those with 50 to 100 employees, which were not covered under the federal WARN Act but are covered under the state’s lower threshold—may not be prepared, he added.
“The timing of most business decisions does not allow for the kind of lead time required by this statute,” Mandelmancontinued, referring to its 90-day notice requirement, longer than the federal 60 days. “To meet the notice requirements, you’d need to plan at least four to five months in advance. Most businesses do not move at that speed, and in this economic climate, it’s hard for employers to say just which employees will be laid off so far in advance.”