Business closing or mass layoff

Overview

With certain exceptions, businesses employing 50 or more persons in the State of Wisconsin must provide written notice 60 days before implementing a business or plant closing or mass layoff in the state.

Notice and Worker Adjustment Retraining and Notification (WARN) Act Requirements

The notice requirement under Wisconsin law is similar to the notice requirement under the federal Worker Adjustment Retraining and Notification ("WARN") Act.

Please note that you must comply with both laws if they both apply.

Frequently Asked Questions

What qualifies as a business or plant closing?

A business or plant closing is the 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.

Workforce Size	Written Notice Required
49 or fewer employees not including new or low hour employees	No
50 or more employees not including new or low hour employees	Yes

What qualifies as a mass layoff?

A mass layoff is a reduction in the workforce which affects at least 25% of the workforce or 25 employees (whichever is greater) or at least 500 employees, not including new or low hour employees.

Workforce Size	No. of Employees Laid Off	Written Notice Required
40 employees not including new or low hour employees	8 employees or 20% of workforce	No. The employer has less than 50 employees.
50 employees not including new or low hour employees	10 employees or 20% of workforce	No. The reduction is not at least 25% of the workforce.
50 employees not including new or low hour employees	25 employees or 50% of workforce	Yes. The employer has the minimum number of employees, and the reduction is more than 25% of the workforce.
100 employees not including new or low hour employees	20 employees or 20% of workforce	No. While the employer has the minimum number of employees the reduction does not meet the minimum of at least 25% of the workforce of 25 employees.
2500 employees not including new or low hour employees	500 employees or 20% of workforce	Yes. Anytime an employer reduces its workforce by 500 or more employees, written notice is required.

Who is considered a new or low-hour employee?

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.

As an employer, how do I know which employees are affected by a business closing or mass layoff?

Your employees are affected by a business closing or mass layoff if:

their employment is terminated,
they are laid off for more than 6 months, or
their hours are reduced more than 50% during each month of any 6-month period because of a business closing or mass layoff.

Employees are not affected if their employment ends because they voluntarily leave, retire, or if they are discharged for cause.

Are there exceptions to the law?

The business closing and mass layoff law does not apply to:

the federal or state government (or their political subdivisions),
or charitable or tax exempt institutions

Additional exceptions apply to various situations involving:

financial difficulties, but only 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,
natural or man-made disasters,
relocations,
sales,
strikes or lockouts,
temporary cessation of operation,
temporary or seasonal employment,
unforeseeable circumstances.

Who must receive notice?

If you have decided on a business closing or mass layoff you must provide written notice to:

The Department of Workforce Development, Dislocated Workers Unit, WIOATitleI@dwd.wisconsin.gov;
All affected employees, including new or low hour employees,;
Any collective bargaining unit representative of any affected employee; and
The highest official of the municipality in which the affected employment site is located.

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

If you do 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. Affected employees, collective bargaining unit representatives, and municipal officials who did not receive required notice may file a complaint with us within 300 days of the closing or mass layoff.

Filing a Business (plant) Closing and Mass Layoff Complaint

You can file a complaint using the Business (Plant) Closing and Mass Layoff Complaint Form (ERD-9646-E)

What are the law's posting requirements?

If you employ 50 or more people in the State of Wisconsin, you are required to post the Business Closing and Mass Layoff Law poster in one or more conspicuous places where notices to employees are customarily posted. Failure to comply with workplace poster requirements may result in fines and penalties.

The Wisconsin Business Closing and Mass Layoff Law poster can be found on the DWD eWorkboard.