Volvo’s 5% Workforce Cut in South Carolina Raises WARN Act Compliance and Employment Law Considerations.

Volvo Cars recently announced that it will reduce its workforce by about five percent at its Ridgeville, South Carolina plant.

Approximately 125 employees, spanning both assembly and office positions, will be affected.

The company pointed to shifting market conditions and new trade policies, including tariffs, as the main reasons behind the decision.

While layoffs are an unfortunate reality in today’s volatile economy, this development brings a number of legal considerations to the forefront, particularly for employment attorneys advising either businesses or affected workers.

One of the first questions raised by the layoffs is whether the federal Worker Adjustment and Retraining Notification (WARN) Act applies.

The WARN Act requires many employers to provide at least 60 days’ notice before implementing large-scale layoffs or plant closures. This typically applies when a business has at least 100 full-time employees and lays off 50 or more employees at a single site.

Although Volvo’s planned reduction appears close to this threshold, whether WARN obligations were triggered depends on the specific circumstances, including the timing and aggregation of the layoffs.

Attorneys representing employers must review these rules carefully, as even smaller layoffs can qualify when multiple reductions happen over a short period.

In addition to federal notice requirements, the risk...

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