The recent announcement that Ubisoft is laying off additional workers at its Red Storm Entertainment studio in Cary, North Carolina – following an earlier round of 100 cuts just three months prior – is a reminder that workforce reductions can happen fast, in waves, and across corporate structures that are more complicated than they first appear.
We advise employers on these situations regularly. The Ubisoft story raises exactly the kind of question we see most often: when reductions happen in multiple rounds across related entities, how does federal law treat them in the aggregate? For any employer considering a reduction in force, the answer starts with the Worker Adjustment and Retraining Notification Act, commonly known as the WARN Act.
What the WARN Act Requires
The WARN Act requires covered employers to provide written notice at least 60 calendar days in advance of a covered plant closing or mass layoff. The purpose is to give workers and communities time to adjust. The penalties for getting it wrong are severe as a violation can expose an employer to back pay and benefits for each affected employee for each day of the violation, up to 60 days. That is an expensive mistake.
The Act applies only to employers with 100 or more employees. Part-time workers count toward that threshold if the workforce collectively logs at least 4,000 hours per week, excluding overtime. Employers must include employees at every location in their total count, not just the site where...
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