header banner
Default

Massive layoffs at Meta, Twitter, and other businesses highlight a little-known U S legislation safeguarding workers


Soon after Tesla and SpaceX CEO Elon Musk's acquisition of Twitter on Oct. 27, mass layoffs began. On the night of Nov. 3, hundreds of the company's employees were notified via email that they no longer worked there, though some have since been asked to come back, Bloomberg reports.

In the wake of the layoffs, five former or current Twitter employees filed a lawsuit against the company alleging it had violated workers' rights per the federal Worker Adjustment and Retraining Notification Act. That stipulates that workers must receive a 60-day notice prior to mass layoffs.

Musk recently weighed in on Twitter, saying, "Everyone exited was offered 3 months of severance, which is 50% more than legally required." Twitter representatives did not respond to CNBC Make It requests for comment.

And it's not the only tech giant cutting staff: Meta, parent company of Facebook, announced this week it would be laying off 11,000 employees as well.

It remains to be seen if the courts will find the Twitter layoffs violated employee rights. Meanwhile, it's helpful to understand this law and your own rights in the case of a mass layoff.

Here's what U.S. workers should know about the WARN Act, which covers all 50 states.

Companies must have 100 full-time employees

VIDEO: Former Twitter 🐦 Employee talks mass layoffs at Twitter, Meta, and Amazon (day in the life vlog)
Tony Cassara

The federal WARN Act, which took effect in 1989, only covers workers who work for more sizeable employers.

The company doing layoffs must have 100 or more full-time employees, not including those who've been there less than 6 months and those who work less than 20 hours per week. It must also be a private, for-profit business; a private non-profit organization; a publicly traded company; or a "quasi-public" organization separate from the government.

There are two types of layoffs that fall under the jurisdiction of the act: a plant closing and a mass layoff.

Each has its own parameters. A plant closing, for example, happens when an employer shuts down an operating unit within a single site of employment, resulting in a layoff of at least 50 full-time employees. A mass layoff can occur when an employer lets go 500 or more full-time employees at a single employment site.

Companies must notify state employment agencies

VIDEO: After massive layoffs in Twitter, Meta plans to fire thousands of employees
DNAIndiaNews

Ultimately, "the purpose of the WARN Act is to provide a time period for workers where they're still being paid and are able to find new work because of the imminent closure," says Daniela Urban, executive director of the Center for Workers' Rights.

Workers must receive written notice (any type of written notice, email included) of the forthcoming layoff 60 days before it takes place, during which time they are still owed their regular pay and benefits. What layoff means in terms of whether or not they still have to come into work is a bit of a gray area, says Arick Fudali, partner at and managing attorney of civil rights firm the Bloom Firm.

Members of a union would be notified by their union as opposed to their employer, and the company must notify their workers' state employment agencies of their impending layoffs as well.

The WARN Act might look different in different states

VIDEO: Meta, Amazon, Twitter and more tech companies face mass layoffs | USA TODAY
USA TODAY

In the case of a violation, 'the employer is liable for back pay'

VIDEO: Massive Tech Layoffs 2022-2023
Kritika & Pranav | Programmer Couple

How millennials have been affected by unemployment during coronavirus

Sources


Article information

Author: Amy Jones

Last Updated: 1702266722

Views: 1216

Rating: 4.3 / 5 (120 voted)

Reviews: 94% of readers found this page helpful

Author information

Name: Amy Jones

Birthday: 1924-12-09

Address: 51619 Cole Mill Apt. 431, Adamville, ME 31219

Phone: +3589646827110999

Job: Astronaut

Hobby: Skiing, Cooking, Beekeeping, Fishing, Playing Guitar, Painting, Chess

Introduction: My name is Amy Jones, I am a ingenious, venturesome, spirited, clever, unwavering, vibrant, vivid person who loves writing and wants to share my knowledge and understanding with you.