Do I Still Get Paid If My Company Closes Temporarily? (2024)

If your company closes temporarily, you usually will not get paid. However, if you lose your job due to a mass layoff or plant closure, there are laws that mandate your employer give you notice and help you obtain resources, services, and benefits to help you find new employment. If your company fails to do so, they may owe you compensation.

Read on to learn more about your employment rights and how an employment lawyer in North Carolina with our firm can help you pursue damages if your company violated the law.

The WARN Act Protects Workers From Mass Layoffs and Company Closures

The Worker Adjustment and Retraining Notification (WARN) Act is a United States law that protects workers’ rights in the event of company closures and mass layoffs. The act aims to ensure employees receive notification of planned firings and layoffs and have access to services and benefits to assist with finding new work.

The WARN Act requires that businesses that fall under the law give employees written notice 60 days prior to a closure or layoff. Employers must also notify the state’s Rapid Response team, which will provide on-site services to help workers transition to a new job.

If you work for a company that falls under the law and it temporarily closes without giving you notice or contacting the Rapid Response team, you may qualify for compensation for your lost pay.

Is Your Company’s Temporary Closure Covered Under the WARN Act?

According to the United States Department of Labor, the WARN Act applies to private for-profit businesses, private non-profit organizations, and some quasi-public entities that employ 100 or more full-time workers or 100 or more employees who work at least 4,000 hours per week.

WARN covers job loss caused by the following:

• Permanent or temporary closures of a facility, operating unit, or single site of employment resulting in the layoff of 50 or more workers over a 30 day period
• A mass layoff of between 50 and 499 full-time workers over a 30 day period at a single site of employment, and that number is at least one-third of the site’s full-time workforce
• A mass layoff involving 500 or more workers over a 30 day period at a single site of employment

The WARN Act covers only full-time employees. Under the law, you are a full-time employee if you work a regular schedule of 20-plus hours per week and have worked for your company for more than six of the previous 12 months. Additionally, the law entitles you to WARN notice only if:

• Your termination is due to closure or downsizing, not because of a voluntary resignation, retirement, or termination for cause
• Your layoff lasted or will last six months or longer
• Your employer reduced or will reduce your hours by more than half for each month of a six-month period

Who Is Not Covered?

The WARN Act does not protect the following employees:

• Striking workers or workers locked out due to a labor dispute
• Employees working on temporary projects or at temporary facilities who knew the work was temporary when hired
• Partners, consultants, and contracted employees assigned to a business who have a separate employment relationship or are self-employed
• Regular local, state, and federal government employees

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What Benefits Does the WARN Act Provide for Temporary Business Closures?

Each state operates its own Rapid Response team to aid workers affected by a permanent or temporary closure. According to the Department of Labor, resources may include:

• Career counseling
• Job searching assistance
• Resume and interview preparation
• Information about the current labor market and job openings
• Job education and training
• Help to obtain unemployment insurance, health benefits, and pensions

Closures and Layoffs That Are WARN Act Exempt

As stated, the WARN Act mandates that companies give employees at least 60 days’ written notice when closing. However, some circ*mstances may prevent an employer from complying. Exemptions to the WARN Act’s 60-day requirement include the following:

• “Faltering companies” that were actively trying to secure capital to remain open and prevent layoffs
• Businesses that could not reasonably foresee the circ*mstances that caused their closure, such as the cancelation of a significant order
• Companies closed due to a natural disaster

If Your Company Violated the WARN Act, Do You Get Paid?

If your company closes or if your company causes a mass layoff and does not provide the notice required by the WARN Act, you can get paid. You can file a lawsuit to recover back pay and benefits for the period you didn’t receive notice. You can also seek compensation for your attorney fees. Many times, attorneys will bring WARN Act violation cases as a class action seeking court approval to represent all similarly situated employees in bringing a case against the company for its WARN Act violations.

Do You Need an Employment Attorney?

The WARN Act has many complicated provisions, and it can be challenging to understand your employee rights under the law. If you feel your company violated its obligation to notify you regarding a closure or layoff, it may benefit you to consult with a workers’ compensation lawyer with our law firm.

Our team can review your case, help you understand relevant employment laws and if the WARN Act covers you and your workplace, and manage the details of your claim. We will fight to secure any payment and benefits owed to you so you can get back on your feet and get back to work.

Recent Company Closures and Layoffs in North Carolina and South Carolina

We assist workers in North Carolina and South Carolina. According to the North Carolina Department of Commerce and SC Works, the following companies recently filed WARN reports for layoffs and closures:

• Williamston Clinic Corporation
• Klaussner Furniture Industries, Inc.
• The Mitchell Gold Co. (doing business as the Mitchell Gold + Bob Williams)
• Epic Games, Inc.
• Prisma Health
• LEGACY Supply Chain Services
• Wells Fargo
• First Savings Bank
• Ryder Integrated Logistics

Contact Farmer & Morris Law, PLLC, for a Free Consultation

If your company closes temporarily, you may get paid back wages and additional benefits if your employer did not comply with the WARN Act. Farmer & Morris Law, PLLC’s employment lawyers can tell you more about your rights and help you pursue damages owed. We assist clients in North Carolina and South Carolina.

Contact us today for a free consultation. We take cases on contingency, meaning we never charge upfront or out-of-pocket fees. Connect with an attorney near you.