Some NC Hemp Employers Face an October 12 WARN Act Deadline
5 min read
5 min read
Most of the attention on the federal hemp changes is on two dates: November 12 and December 11. For some North Carolina hemp employers, there is another date to watch: October 12, the 60-day WARN Act notice date for certain covered layoffs or plant closings that would happen on December 11. It comes from a federal employment law, not a hemp law.
This article explains the basics of federal law. It is not legal advice. North Carolina employers may also need to consider other applicable state or local employment requirements, and any business that thinks it may be affected should talk with an employment lawyer right away.
What the WARN Act Requires
The Worker Adjustment and Retraining Notification Act, known as the WARN Act, requires many employers to give at least 60 calendar days of written notice before a plant closing or a mass layoff.
In general, the law covers employers with 100 or more employees, with certain exclusions for workers who have worked fewer than six months in the last 12 months or who average fewer than 20 hours a week. Notice is generally required in two situations:
• A plant closing: the permanent or temporary shutdown of a facility or operating unit at a single site that results in employment loss for 50 or more employees
• A mass layoff: employment loss at a single site for 500 or more full-time employees, or for 50 to 499 full-time employees if they make up at least a third of the workforce at that site
An employment loss under the law can include more than a termination. It can also include certain long layoffs or reductions in hours.
Why October 12 Matters for Hemp Businesses
On December 11, the federal changes that include a 0.4 milligram per container THC limit for finished hemp-derived cannabinoid products are currently scheduled to apply, unless Congress acts again. For a covered employer that expects a qualifying plant closing or mass layoff to happen on December 11 because of the federal change, the 60-day notice period points to October 12.
MJBizDaily reported in September that hemp operators planning layoffs or closures because of the federal change could face an October 12 WARN notice date.
The December 11 date could still change if Congress acts. But a business that waits to find out may run out of time to give the full 60 days of notice.
Who Has to Be Notified
Under the federal WARN regulations, written notice generally has to go to three groups:
• Each affected employee, or the employees' representative if the workers are represented
• The state's dislocated worker unit
• The chief elected official of the local government where the closing or layoff will happen
What Happens if Notice Is Not Given
An employer that does not give the required notice can owe affected employees back pay and benefits for each day of the violation, up to 60 days. An employer that fails to notify the local government can also face a civil penalty of up to $500 for each day of the violation. These claims can be brought through lawsuits, potentially adding legal costs.
WARN also contains exceptions, including one for certain unforeseeable business circumstances. Whether an exception applies depends on the facts, and it does not mean an employer can simply skip notice. That is a question for a lawyer, not something to assume.
Steps to Take Now
For North Carolina hemp businesses that may be affected, a few practical steps are worth taking this week:
1. Count your employees and determine which employees work at each potentially affected site, then check whether the WARN Act's employer and single-site thresholds could apply
2. Look at which sites or roles could be affected if the federal changes take effect as currently scheduled on December 11
3. Talk with an employment lawyer about whether you need to give notice, and how
4. If a covered December 11 employment loss would trigger WARN notice, talk with counsel now about whether notice should be sent by October 12
The Bigger Picture
The WARN Act was written to give workers and communities time to prepare for a job loss. For North Carolina's hemp industry, it is one more reminder that the federal changes affect more than what is on a store shelf. They also affect the people who work in these businesses, and the decisions employers have to make weeks before the rules actually change.
