DOL to revamp state's notice system for mass layoffs
State Labor Commissioner Roberta Reardon speaks to the Long Island Association in 2019. Credit: Howard Schnapp
New York Labor Commissioner Roberta Reardon says planned improvements to the state's layoff notification system will help recently jobless workers access benefits and job opportunities faster.
The state’s online Worker Adjustment and Retraining Notification, or WARN, system will undergo enhancements to speed up the processing and posting of layoff notices. Employers who must file a notice will be able to go online and submit documentation regarding layoffs in real time, including lists of impacted workers, without processing delays.
Currently, when an employer who notifies the state of an impending layoff or business closure, it can take days before a notification is posted. By cutting the time to notify the public on a layoff, the state said it can quickly reach workers in need of unemployment insurance or job placement services.
“The pandemic opened our eyes to all the improvements we needed to do,” Reardon told Newsday on Thursday. “When somebody lays off their workers, it impacts the entire community. The school district needs to know, the local elected officials need to know … It has a ripple effect.”
With the updates, the Labor Department's Division of Workforce and Employment Solutions will be able to more quickly connect jobless individuals with new training or career options.
The WARN Act requires employers with at least 50 full-time employees to file a notice of mass layoffs or closures 90 days in advance. Federal rules require employers to file 60 days in advance.
In addition to the technology updates, the state also said it will include language to clarify the requirements on business owners who must file layoff notices. Language regarding remote workers will also be included in the updated regulations.
Currently, businesses that fail to file a WARN in New York face a civil penalty of $500 per day of violation and may may be liable for back pay and other benefits for 60 days of the violation, according to the Labor Department.
Reardon did not say how common it was for the Labor Department to levy penalties against noncompliant employers. The agency’s approach is to first see if a business can be brought into compliance with the WARN regulations before issuing fines.
“A lot of businesses get confused about what their requirements are,” she said.
The improvements are part of a larger four-year technology upgrade to the Labor Department’s unemployment filing process, as well as other back-end computer updates. The changes to the system come nearly three years after mass pandemic layoffs pushed the system to its breaking point.
In 2020, the agency received 2,170 WARN filings impacting 240,001 workers, up sharply from the 430 filings affecting 27,858 workers in 2019.
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