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Business (Plant) Closing and Mass Layoff

Section 109.07 of the Wisconsin Statutes and Chapter DWD 279 of the Wisconsin Administrative Code provides that with certain exceptions, businesses employing 50 or more persons in the State of Wisconsin must provide written notice 60 days before implementing a "business (plant) closing" or "mass layoff" in the state.

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Questions. (Click on Question For Answer)
What are the "exceptions to the law?"
What "employees are counted"?
What is a "business closing (plant closing)"?
What is a "mass layoff"?
Who are "new" and "low-hour" employees?
Who must receive notice?
What can employees recover if notice is required, but not given?
What are the requirements for posting a poster?

What are the "Exceptions to the Law?"

This law does not apply to the federal or state government (and their political subdivisions), or charitable or tax exempt institutions. Additional exceptions exist in various situations involving strikes or lockouts, sales, relocations, temporary or seasonal employment, unforeseeable circumstances, natural or man-made disasters, temporary cessation of operation, or financial difficulties, if the employer believes in good faith that notice would have prevented the employer from obtaining necessary capital or business in order to avoid layoffs.

What "Employees are Counted?"

Employees are counted if their employment is terminated (not including discharges for cause, voluntary departures or retirements), if they are laid off for more than 6 months, or if their hours are reduced more than 50 percent during each month of any 6-month period, as the result of a "business closing" or "mass layoff."

What is a "business closing (plant closing)?"

A "business (plant) closing" requires notice if there is a permanent or temporary shutdown of an employment site or of one or more facilities or operating units within a single municipality that affects 25 or more employees (not including "new" or "low-hour" employees).

What is a "mass layoff?"

A "mass layoff" requires notice if there is a reduction in the workforce that is not a "business closing" and which affects the following number of employees (excluding "new" or "low-hour" employees) at an employment site or within a single municipality. At least 25% of the workforce or 25 employees, whichever is greater; or at least 500 employees.

Who are "New" and "Low-hour" employees?

"New" employees are those who have been employed for fewer than 6 of the 12 months preceding the date on which a notice is required. "Low-hour" employees are those who average fewer than 20 hours of work per week.

Who must receive notice?

Employers who have decided on a business closing or mass layoff must provide written notice to The Department of Workforce Development. Dislocated Workers Unit. PO Box 7972, Madison, Wisconsin 5370 7, any affected employee, any collective bargaining unit representative of any affected employee, and the highest official of any municipality in which the affected employment site is located.

What can employees recover if notice is required, but not given?

If an employer does not provide notice as required, affected employees may recover back pay and benefits for each day that required notice was not provided (up to a maximum of 60 days). This is enforced by filing a complaint (see below) with the Equal Rights Division within 300 days.

Get a copy of the Business (Plant) Closing and Mass Layoff Complaint Form

What are the requirements for posting a poster.

Each such employer shall post, in one or more conspicuous places where notices to employees are customarily posted, a notice in a form approved by the department setting forth employees' rights under this section. Any employer who violates this subsection shall forfeit not more than $100.

Get a copy of
Business (Plant) Closing and Mass Layoff Law Poster
Section 109.07 of the Wisconsin Statutes and Chapter DWD 279 of the Wisconsin Administrative Code

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