Employee status under WARN act

The company is involved in a mass lay offs (More than 500 employees) and we have to comply with the WARN act. We give our employees 60 days to find another position before we take them off payroll and end health insurance benefits. We give the displaced employees access to our internal online job interest applications and instruct them to indicate that they’re displaced on the application. We also take away all email, network, workplace badges and stop accrual of vacation and bonuses.

We have an employee that was applying for a loan on a house and the bank called the HR department to verify employment. We didn’t want to tell the bank that the employee (or displaced employee) was terminated etc. so we told them we would get back with them. We don’t have a policy on this issue as of yet but I think now would be a good time to enact one.

My question is under the WARN act do we have to keep their status of an employee active? If so what do we call them?

The company’s head quarters are in the state of Kansas.

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