WARN

Carolyn Rivera

My company seems to be on the edge of closing. The rumor mill states that they do not plan on advising anyone of the closure. Can this be done? Don't they have to inform us of a closure? Can they collect Unemployment? Who will stay? Rumors are that only the CEO and staff will be on payroll if this happens. I don't know whether to run for the want ads or cry.

scottorr

Sorry to hear about this Carolyn. It is not easy. Usually most rumors have some basis of fact but it is usually just exagerated quite a bit. Warm up that resume just in case it is. You should be able to collect UI if you are laid-off. I worked for a company that was rumored to close for several years now, they have let about 50% of the staff go but are still around. Keep your head up and let us know if we can help.

Don D

To answer some of your concerns, call your state department of employment or labor and ask them if your company falls under the requirements of the Warn Act. Be prepared to tell them how many employees you have at the location. Unemployment Insurance should be an easy one if the employees are otherwise eligible. If they are going to close for reasons of foreign competition or are going off-shore, there can be other monetary and training benefits available to all employees. It takes a real jerk to close down, unannounced. Your state has a 'rapid-response-team' capability and the state or SDA will assemble a team of experts to come to your place and talk to groups about unemployment, stress, paying bills, preparing resumes, dealing with all the downsides of being laid off, including individual counseling and getting a resume exchange going in the community. If you get reliable information that in fact the company is going to do this with no notice to its employees and no regard for them whatsoever, call the editor of your newspaper and tell him exactly that. It's amazing how a little press can persuade people to rethink their plans.