7 things to know about layoff filings a.k.a. WARN notices

Laws requiring advance notice of mass terminations have drawn scrutiny as the mortgage industry continues to undertake sweeping layoffs.

Companies shedding payroll to address declining revenues have made abrupt announcements, upsetting employees by giving them little time to react. Other firms that planned to make the cuts in the coming weeks or months filed Worker Adjustment and Retraining Notifications with state labor offices. 

The disclosures comply with state and federal WARN Acts, laws meant to provide advance notice of layoffs for workers. The requirements trigger assistance through a State Rapid Response Dislocated Worker Unit, which coordinates with employers to provide information to impacted workers about employment and retraining services. While most states follow the federal guidelines, others such as California, New Jersey and New York also have tougher requirements such as extended notice periods or varying worker thresholds that trigger a filing.

While some of the biggest cuts in the industry this year have been revealed via WARNs, many rounds have been executed quietly. Two lenders who filed for Chapter 11 protection this year were sued for failing to file WARNs ahead of their shutdowns, and the employees of one of those companies are likely to receive some compensation. 

The U.S. The Department of Labor provides handbooks for employers and workers detailing the nuances of the Act, including exemptions and exceptions. National Mortgage News broke down some of the basics of the federal law that mortgage professionals and companies need to know. For the full legal requirements, firms and workers should refer to the federal act and individual state laws.