§2104 Administration and Enforcement of Requirements

Summary

If an employer closes a plant or makes a big layoff without giving the required notice, the employer must pay each affected worker money for every day of the violation. The daily pay must be at least the higher of the worker’s average regular pay over the last 3 years or the worker’s final regular pay. The employer must also cover benefits from an employee benefit plan, including medical costs that would have been paid if the job loss had not happened. The amount the employer owes is reduced by any wages already paid for that time, any voluntary unconditional payments the employer made, and any payments the employer made for the worker’s benefits or pension on the worker’s behalf. If the violation involves a local government unit, the employer can be fined up to $500 for each day of the violation unless the employer pays what it owes to each affected worker within 3 weeks of ordering the shutdown or layoff. A court can lower penalties if the employer shows it acted in good faith and had reasonable grounds to believe it was not breaking the rule. An employee, an employee representative, or a local government unit can sue in federal court where the violation happened or where the employer does business, and the court may award reasonable attorney’s fees to the winner. "Aggrieved employee" means a worker who was employed by the employer that ordered the closing or layoff and who did not get the required timely notice. The remedies listed here are the only ones allowed, and a federal court cannot order a plant closing or layoff to be stopped.