NYS Updates WARN Act Regulations

WARN Act, New York WARN Act, mass layoffs, company restructuring

The New York State Department of Labor issued final regulations making amending and adding to long-existing regulations under  the New York WARN Act.  The revisions update the regulations to conform to certain statutory changes as well as provide clarification to other areas of the NY WARN law.

The final regulations became effective June 21, 2023 and are identical to the proposed regulations issued by the Department of Labor on March 29, 2023.

Among other notable changes, the revised regulations include a provision adding remote workers, whether inside or outside of New York, to the 50-employee count for the coverage threshold as an employer, as long as they are “based” at the employment site in New York.  In addition, the revisions provide a process for the Department of Labor to review and rule upon any employer requests to reduce the 90-day notice period based upon one or more exceptions in the NY WARN law. In the business transaction context, a purchasing business may now be held liable for failing to transfer employees, where such is a condition of the transaction. Employers considering restructuring or mass job terminations or layoffs should ensure that their counsel follows these updated regulations in determining whether WARN obligations apply to their particular situation.