2. Employment & Training
3. Employer
4. Navigating a Layoff
5. Overview of Wisconsin's Business Closing and Mass Layoff Law

Overview of Wisconsin's Business Closing and Mass Layoff Law

Background
Under current Wisconsin law, Section 109.07 of the Wisconsin Statutes and Chapter DWD 279 of the Wisconsin Administrative Code combine to create Wisconsin's Business Closing and Mass Layoff (WBCML) Law. Some version of WBCML law has been in effect since 1975. In 1988, the U.S. Congress passed the Worker Adjustment and Retraining Notification (WARN) Act which is similar to WBCML law. The purpose of both the state and federal notice laws is to provide workers with 60 days notice to help them prepare for the transition between their current employment and new employment.

While there are many similarities between the federal and state laws, there are several differences as well, including different circumstances that trigger the law and different notice requirements. Employers must comply with both laws if both apply.

The following information is intended only as a brief overview of Wisconsin's Business Closing and Mass Layoff Law and is not intended as an official statement of interpretation of the law.

When Employer Notice Must be Given
Employers generally are covered by the WBCML law if they employ 50 or more persons in the State of Wisconsin and either

1. Permanently or temporarily shut down an employment site, facility, or operating unit within a single municipality that affects 25 or more employees
   OR
2. Make a reduction in the workforce which affects
   • at least 25% of the workforce or 25 employees, whichever is greater or
   • at least 500 employees
   A workforce reduction may be a layoff extending beyond 6 months or the reduction of work hours by more than 50% during each month in any 6-month period.

When determining who is an "affected employee," "new" and "low-hour" employees are excluded. "New" employees have been employed by the business for fewer than 6 of the 12 months preceding the date on which notice is required. "Low-hour" employees average fewer than 20 hours per week.

Two or more groups of employees who are affected during a 90-day period may be considered in aggregate when determining whether the business closing or mass layoff thresholds have been met.

Covered employers must provide written notice 60 calendar days in advance of a business closing or mass layoff or reduction in hours.

Conditional Notice
An employer may provide notice that is contingent on the occurrence or nonoccurrence of an event, such as the renewal of a contract (excluding labor contracts).

Voluntary Notice
An employer is encouraged to provide notice, even in situations which do not technically constitute a business closing or mass layoff as defined by the WBCML law. Whether a dislocation event constitutes a business closing or mass layoff under the law will depend on the circumstances of the event and not how the event was characterized by an employer in any written notice.

Notice must be provided to:

1. The Department of Workforce Development: WIOATitleI@dwd.wisconsin.gov
2. Any affected employee (including new or low-hour employees);
3. Any collective bargaining unit representative of any affected employee; and
4. The highest official of the municipality in which the affected employment site is located.

Contents of the Notice
Information provided in the notice is to be based on the best information available to the employer at the time the notice is served. Errors in the information provided due to a subsequent change in event or minor inadvertent errors are not to be considered a violation of WBCML law.

Notice to the State's Dislocated Worker Unit and the highest official of the municipality must include:

• The name and address of the employment site where the business closing or mass layoff will occur;
• The number of employees affected by the business closing or mass layoff;
• The expected date of the first separation or layoff;
• A description of whether the planned action is expected to be permanent or temporary. If the entire employment site is to be closed, a statement to that effect. If the planned action is expected to be temporary, include the estimated duration of the action, if known; and
• The name and telephone number of a company official to contact for further information.

NOTE: The WARN Act has additional requirements, including:

• The expected layoff schedule
• The job titles of positions that will be affected and the number of affected employees in each job category
• A statement of bumping rights, if any exist
• The name of each union / employee representative and the name and address of the chief elected officer of each union

Notice to each affected employee must include:

• The name and address of the employment site where the business closing or mass layoff will occur;
• The expected date the business closing or mass layoff will commence and the expected date of the employee's layoff or separation;
• A description of whether the planned action is expected to be permanent or temporary. If the entire employment site is to be closed, a statement to that effect. If the planned action is expected to be temporary, include the estimated duration of the action, if known.
• The name and address of the employee's collective bargaining representative, if applicable;
• The name and telephone number of a company official to contact for further information; and
• The contact information for the local workforce development board serving the area in which the employment site is located and, if available, a list prepared by the board that identifies the resources available in the area that provide career planning, job search, job skills training, and other support services, and the contact information for accessing those resources.

If at the time the notice is given, the employer is unable to identify which employee will lose employment due to the elimination of a particular position, notice must be provided to the employee currently holding that position.

Notice to the collective bargaining representative of an affected employee must include:

• The name and address of the employment site where the business closing or mass layoff will occur;
• Whether the planned action is expected to permanent or temporary and if the entire employment site is to be closed, a statement to that effect;
• The schedule of separation or layoff, including a list of job titles of the affected positions and the names of the employees currently holding those jobs or expected to be affected by the planned action; and
• The name and address of a company official for the bargaining representative to contact for further information.

Delivery of Notice
An employer may use any reasonable method of delivery including, first class mail and personal delivery.

Extension of Notice
An updated notice of a delayed business closing or mass layoff must be issued within a reasonable time after the employer learns there will be a postponement or delay beyond the date announced in the original notice. The updated notice is directed to the same recipients as the original and must include a reference to the original notice, the new date, and the reasons for the postponement or change in date.

Consequences for Failing to Provide Timely Notice
If an employer does not provide notice when it is required, affected employees may recover up to 60 days of back pay and benefits for each day that notice was required but not provided. Additionally, if an employer fails to give timely notice to the highest official of a municipality, the State may assess a penalty against the employer of not more than $500 for each day that notice was required but not provided.

A complaint against the employer for failure to provide timely notice of a business closing or mass layoff may be filed with the Department of Workforce Development by any affected employee, the highest official of any municipality in which the affected employment site is located, or the collective bargaining representative of any affected employee.

In the event a complaint is filed with the DWD's Equal Rights Division, the employer will be asked to make available for inspection all notices and correspondence delivered to the affected employees, municipalities, collective bargaining representatives, and the State's Dislocated Worker Unit, as well as any records used in connection with preparation and delivery of the notices. The employer may also be asked to provide time and payroll records in order to assess whether a violation occurred.

Exceptions to Notice Requirements
The WBCML law does not apply to:

• the federal or state government (or their political subdivisions);
• or charitable or tax exempt institutions.

Additional exceptions may occur in situations involving:

• strikes or lockouts;
• the sale of all or part of an employer's business if the purchaser agrees in writing to hire substantially all of the affected employees;
• the relocation of all or part of an employer's business;
• temporary or seasonal work;
• unforeseeable business circumstances
• natural or man-made disasters beyond the employer's control;
• temporary cessation of operations if the employer recalls the affected employees on or before the 60th day beginning after the cessation;
• financial difficulties, but only if the employer believes in good faith that notice would have prevented the employer from obtaining necessary capital or business in order to avoid layoffs.

What to Expect After Filing Notice with the State

• The notice filed with the State is considered public information and will be published online at https://dwd.wisconsin.gov/dislocatedworker/warn/.
• The State's Dislocated Worker Unit will provide the signatory on the notice a letter confirming receipt of the notice.
• The employer will be contacted by either the State or its local workforce programs partner to discuss rapid response services and developing a transition plan.
• The employer will be asked to provide a list of names, occupation titles, wage information, expected separation dates, and mailing addresses for each member of the affected workforce.

WBCML Law Resources

• Section 109.07, Wisconsin Statutes
• Chapter DWD 279, Administrative Code
• For general Questions about Wisconsin's Business Closing and Mass Layoff law, contact:
  
  Equal Rights Division
  Telephone: (608) 266-6860
  Email: ERinfo@dwd.wisconsin.gov
  Web: Equal Rights