SENATE BILL REPORT

EHB 1855

BYRepresentatives Jones, Vekich, Wang, Leonard, Jacobsen, R. King, Anderson, Ebersole, Cole, Nelson, Belcher, Basich, Brekke, Rector, Dellwo, Sayan, Wineberry, Crane, Prentice and Phillips

Establishing a state plant closure law.

House Committe on Commerce & Labor

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):March 21, 1989

Senate Staff:Jack Brummel (786-7428)

AS OF MARCH 14, 1989

BACKGROUND:

The federal plant closure law (P.L. 100-379) was enacted August 4, 1988, effective February 4, 1989.  Under the federal law, employers with 100 or more employees, excluding part-time employees, or 100 or more employees who aggregately work at least 4,000 hours per week, excluding overtime, are required to give 60 days notice of any plant closing or mass layoff.

SUMMARY:

Employers who average 25 or more employees per week during any three consecutive months in the 12 months prior to a reduction in business operations must give at least 100 days notice of the reduction.  The notice period may be reduced if the employer gives as much notice as possible and (1) an unforeseeable contingency occurs with contractual or financial arrangements making fulfillment impracticable; or (2) the reduction in business operations results from the anticipated loss of a supply of logs that reduces the employer's business by 50 percent, if the employer operates a small mill.  Sixty days notice is required if the employer is receiving assistance from the state business and job retention program.

The act does not apply to reductions in business operations that occur at construction sites or other temporary workplaces, result from customary seasonal factors in the industry, or result from natural disasters.

If the employer sells the business, the seller is responsible for providing notice of any business reduction up to and including the day of the sale.  After the sale, the buyer is responsible for providing notice.

Notice must be given to all affected employees, the employees' collective bargaining representative, if any, the dislocated worker unit, the state business and job retention program, and the chief elected official of the affected community.  Within 30 days of receiving notice and as appropriated funds allow, the business and job retention program must complete an assessment of alternatives to reduction of business operations.

If a total closure is planned, employers must offer the plant for sale to those planning to operate it as a community-owned or employee-owned business.

If an employer fails to give the required notice, the employer must pay each affected employee a day's pay for each day that notice was required but not given; continue existing group health insurance; pay an amount equal to the amount paid to affected employees to the state business and job retention program; and provide a relocation and/or training plan for affected employees.

An employer violating the notice provisions is not eligible for entering into contracts for state work or for state economic development assistance for 10 years.  The employer must also reimburse an awarding agency for any economic assistance loan provided during the preceding 10 years, with interest.

Any person aggrieved by a violation of the act, including affected employees' collective bargaining representatives, the affected local government, or the Department of Trade and Economic Development, may bring suit to enforce the act.

If a collective bargaining agreement provides for a longer notification period or greater employee protections than required by the act, the collective bargaining agreement prevails.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested February 13, 1989

Effective Date:The bill contains an emergency clause and takes effect immediately.