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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.
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.
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 |
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. |
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.
Your employees are affected by a business closing or mass layoff if:
Employees are not affected if their employment ends because they voluntarily leave, retire, or if they are discharged for cause.
The business closing and mass layoff law does not apply to:
Additional exceptions apply to various situations involving:
If you have decided on a business closing or mass layoff you must provide written notice to:
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.
You can file a complaint using the Business (Plant) Closing and Mass Layoff Complaint Form (ERD-9646-E)
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.