Hawaii Administrative Rules
Title 12 - DEPARTMENT OF LABOR AND INDUSTRIAL RELATIONS
Subtitle 6 - OFFICE OF EMPLOYMENT AND TRAINING ADMINISTRATION
Chapter 506 - PLANT CLOSING NOTIFICATION AND DISLOCATED WORKER ALLOWANCE
Section 12-506-4 - Closing

Universal Citation: HI Admin Rules 12-506-4

Current through August, 2024

(a) In order for there to be a closing, there shall be:

(1) A sale, transfer, merger, and other business takeover or transaction of business interests;

(2) A permanent shutting down of all operations within a covered establishment due to paragraph (1); and

(3) An actual or potential lay-off or termination of employees of a covered establishment by the employer as a result of paragraph (2).

(b) Business shutdowns which occur as a direct result of or in connection with factors such as business failure, bankruptcy, or loss of lease or contract are not considered closings for the purposes of chapter 394B, HRS.

Examples:

Employer A employs 100 employees but suffers financial setbacks due to lack of business. The employer files for bankruptcy and lays off all 100 employees as a result. No closing has taken place for the purposes of chapter 394B, HRS.

Employer B is a retail store employing 50 employees. The employer loses the lease in the shopping center in which the store is located. As a result, all employees are laid off. No closing has taken place for the purposes of chapter 394B, HRS.

Employer C owns and operates a shrimp farm employing 200 workers. The shrimp farm is totally devastated by a hurricane, which forces the employer to lay off all employees. No closing has taken place for the purposes of chapter 394B, HRS.

Employer D is a local hotel employing 75 employees. The hotel is sold to a foreign investor and all employees are laid off, although the hotel continues to operate with different employees. For the purpose of chapter 394B, HRS, a closing of the hotel has occurred.

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