Vermont Notice of Potential Layoffs Act Now in Effect

Author: Ashley Shaw, XpertHR Legal Editor

January 20, 2015

On January 15, 2015, the Vermont "mini-WARN" law went into effect. The Notice of Potential Layoffs Act adds state-level notification requirements to the current requirements under the federal Worker Adjustment and Retraining Notification (WARN) Act. Under this new law, a Vermont employer with 50 or more employees will have to provide certain notifications before a business closing or mass layoff.

The law includes certain exceptions, such as closings due to natural disasters outside of the employer's control.

Covered Employers

This new law will apply to employers with:

  • Fifty or more full-time employees;
  • Fifty or more part-time employees who each work at least 1,040 hours in a year; or
  • A combination of full-time employees and part-time employees working 1,040 hours a year that totals 50 or more employees.

In the case of a business closing or a mass layoff, covered employers will have to give notice to all affected employees. An affected employee is one that is expected to have an employment loss because of the closing or layoff. The definition of employment loss does not include employees who:

  • Are offered a transfer to a site within 35 miles of the current site;
  • Voluntarily resign or retire before notice is given; or
  • Are terminated for poor performance or misconduct reasons and not because of the closing.

Notice Requirements

The Act requires that employers provide advance notice of information related to the closing or layoff to the state within specific timeframes.

Notice Required at Least 45 Days Before the Closing or Layoff

At least 45 days before the closing or layoff, the Vermont Secretary of Commerce and Community Development and the Vermont Labor Commissioner should be given notice that includes all of the following information:

  • Approximate number of affected residents;
  • Job titles of affected residents;
  • Anticipated date of layoff; and
  • Worksites affected.

Notice Required at Least 30 Days Before the Closing or Layoff

At least 30 days before the closing or layoff, all of the following should be given notice of the closing or layoff:

  • A local chief elected official (i.e., mayor) or administrative officer of the municipality where the layoff is expected to occur;
  • Any applicable bargaining unit; and
  • The affected employees.

At this time, the employer should also re-notify the Vermont Secretary of Commerce and Community Development and the Vermont Labor Commissioner with the actual number of affected residents, date of layoff and any other information the Commissioner deems necessary.

Penalties

An employer that is found to have violated the law could be assessed penalties such as a $500 administrative penalty for every day that it did not provide the required notice.