Expert: Thomas R. Ballas - 11/8/2009

Question
On November 6 2009 we were given notice that in 30 days we will be shutting down. My company is in Detroit Michigan and we have a union. Now what I'd like to know is are we entitled to have 60 days notice? Our contract with the company doesn't end until May 2010. The problem is we sub- contract from another company that are not honoring their contract. Their contract with our company expires in 2011. So now our company is suing the other company and laying us off DEC 7th 2009. Please help!!! Lost %26%26confused.

Answer
Myneta:

It is impossible for me to say without seeing the Union agreement, but I suspect since the company is shutting down it is legal.  The fact you have an agreement valid until May does not bind the company if it is shutting down.

Depending on how many employees you have the Company may need to provide more notice under WARN.

Your company must have at least 100 employees.  Here is a link that gives you information on that Act.

http://www.doleta.gov/programs/factsht/warn.htm

Tom Ballas