The Colorado Worker Adjustment and Retraining Notification (WARN) Act safeguards and protects workers, families, and communities during workforce changes, such as plant closings and mass layoffs. This article provides an overview of its components and enforcement, so that you can ensure compliance with US labor law and the protection of employee rights at your company. Read on to learn how to issue a WARN notice in Colorado and everything else you need to know about the WARN Act in CO.
TABLE OF CONTENTS
- Does Colorado have WARN Act?
- What is the Colorado WARN Act?
- WARN notices in Colorado
- What Triggers the WARN Act in Colorado?
- Colorado WARN Act Requirements
- How is the WARN Act Enforced in Colorado?
- Offboarding your workforce during a layoff
- Offboarding solutions 🚀
Does Colorado have WARN Act?
Over half of the states, including Colorado, lack their own state-level WARN Act. However, this doesn’t mean the workers of Colorado are without protections. Federal WARN Act regulations still extend coverage to employees in Colorado. The state requires employers to submit and issue WARN notices to workers, providing information on anticipated mass layoffs and plant closures, along with details on the number of affected workers.
Some states are not only regulated by the federal WARN Act, like Ohio, Pennsylvania, Georgia, North Carolina, Arizona, and Florida, but have their own requirements and regulations specified in their so-called mini-WARN Acts. These states include: California, New York, New Jersey, Illinois, and more.
What is the Colorado WARN Act?
Colorado’s WARN Act is meant to ensure that workers are protected when facing layoffs or plant closures. Employers in Colorado have to provide advance notice to employees when aware of impending closures or layoffs. The purpose of this notice is to offer employees enough time to find alternative employment options.
For other similar topics read our article on the Family and Medical Leave Act (FMLA) in Colorado. The FMLA is not to be confused with FLSA, which establishes guidelines for minimum wage, overtime, and unemployment benefits.
On a similar note, however, Colorado holidays are determined both federally, and locally per state. Check out our federal holiday calendar for an updated and complete list.
WARN notices in Colorado
WARN notices in Colorado require employers to give a 60-day advance notification to employees during layoffs or plant closures. If workers belonging to a union are also involved, notification has to be directed to union representatives rather than individual employees. There’s no specific template that employers must use for the notice, but it must be in writing and include all the important information such as the site and date of closure or layoffs, reasons for the action, whether the loss is permanent or temporary, affected job titles, unions, and the number of employees, and follow-up contact information in case employees or anyone has questions.
See previously issued WARN notices for the state of Colorado here.
Who do Colorado employers have to give a WARN notice?
Employers covered by the act have to provide written notice to all affected workers, as well as labor unions representing these workers, the State Rapid Response Coordinator, and the chief elected official of the local government where the employment site is located. This notice must be delivered at least 60 days before the anticipated plant closing or mass layoff.
What Triggers the WARN Act in Colorado?
Certain situations trigger the WARN Act in Colorado:
1. Plant closings affecting 50 or more employees for at least 30 days.
2. Mass layoffs involving at least 500 full-time employees.
3. Mass layoffs involving at least 50 full-time employees, constituting 33% or more of the employer’s workforce.
4. Plant closings or layoffs extended over 90 days.
What is a plant closing?
When an employment site or facility is shut down resulting in loss of employment for 50 or more employees during a 30-day period.
What are mass layoffs?
When a mass layoff occurs that does not result from a plant closing, but leads to an employment loss for 500 or more employees during a 30-day period, or for 50-499 employees if they make up at least 33% of the employer’s active workforce.
What are extended layoffs?
When the cumulative employment losses for two or more groups of workers, each falling below the minimum threshold for notice, reach the threshold level during any 90-day period for either a plant closing or mass layoff.
Related: Reduction in Force (RIF) – A Comprehensive Guide for Employers
Colorado WARN Act Requirements
In Colorado, employers with more than 100 or more employees are covered by the WARN Act, not counting employees who have worked at the less than 6 months out of a 12 month period, or those working an average of less than 20 hours per week. The Act applies to all sorts of employers: private, for-profit employers, private, nonprofit employers, as well as public and quasi-public entities operating in a commercial context.
Employees who are entitled to notice under the WARN Act include both hourly and salaried workers, as well as managerial and supervisory employees. However, business partners are not entitled to notice.
The most important focus of the WARN Act requirements in Colorado is on notification. Employers must provide advance notice before a change in employment affecting many employees.
The state of Colorado encourages all employers to issue a WARN notice, regardless of whether they are legally required to do so by meeting the WARN act minimum employee threshold or any of the other criteria.
How is the WARN Act Enforced in Colorado?
The Colorado WARN Act is enforced through the United States District Courts. Workers, their representatives, and units of local government have the right to bring individual or class-action suits against employers believed to be in violation of the Act. The court may decide to award reasonable attorney’s fees to the prevailing party as part of the costs.
When the WARN Act is violated, employers may need to give back pay to affected employees. Penalties of up to 500$ may also be a consequence of WARN Act violations. Employers have to settle liabilities with employees that have a grievance within three weeks of the plant closure or layoff. Failure to comply may lead to individual or class-action lawsuits in the U.S. District Court. Consult with Colorado labor lawyers to address potential violation claims and always read the official sources before making any decisions, as laws are subject to change.
The Colorado WARN Act is essential for HR managers to understand in order to handle workforce changes compliantly and ensure the rights of employees are protected during significant transitions.
Related: Compliance calendar for HR
Offboarding your workforce during a layoff
Once you’ve followed all the required steps mandated by Colorado during plant closings and mass layoffs, it’s time to begin the offboarding process at your company. Offboarding so many employees at the same time can be a time consuming and costly process, but with the right HR software, it can be easy.
How to offboard employees with HR software
Factorial simplifies the offboarding process, streamlining tasks and ensuring a smooth transition for departing employees. With Factorial, you can efficiently manage exit procedures, such as collecting company assets, updating access permissions, and conducting exit interviews. Offboarding software simplifies the entire process from start to finish.
Key Features for offboarding during layoffs:
1. Clear Communication: Easily communicate departure details to the departing employee, including the last day of work, return of company property, and other essential information.
2. Task Automation: Automate offboarding tasks, such as revoking system access, updating records, and notifying relevant departments, saving time and minimizing the risk of oversight.
3. Documentation and Compliance: Ensure compliance by generating necessary documentation, such as termination letters and exit surveys, helping you maintain a comprehensive record of the offboarding process.
4. Access Control: Centralize access control management, making it simple to revoke access to company systems and confidential information, safeguarding your organization’s data.
By utilizing Factorial for offboarding, HR managers can enhance efficiency, maintain compliance, and provide a positive experience for departing employees.
