New York Codes, Rules and Regulations
Title 12 - DEPARTMENT OF LABOR
Chapter XII - Division Of Employment And Training
Part 921 - New York State Worker Adjustment And Retraining Notification (warn) Requirements
Subpart 921-6 - Exceptions
Section 921-6.2 - Faltering company
Universal Citation: 12 NY Comp Codes Rules and Regs § 921-6.2
Current through Register Vol. 46, No. 52, December 24, 2024
(a) This exception applies only to plant closings as defined under the Act. An employer qualifies for a reduced notice under this exception if at the time notice would have been required:
(1) The employer was
actively seeking capital or business and identifies the specific actions taken
to obtain such capital or business. For example, the employer must demonstrate
its efforts to obtain financing or refinancing through the arrangement of
loans, the issuance of stocks, bonds, or other methods, or to obtain additional
money, credit, or business through any other commercially reasonable method;
and
(2) There was a realistic
opportunity to obtain the capital or business sought; and
(3) The capital or business sought would have
been sufficient, if obtained, to enable the employer to avoid or postpone the
plant closing; and
(4) The employer
reasonably and in good faith believed that giving notice would have precluded
the ability to obtain the needed capital or business. The employer must be able
to objectively demonstrate that a potential customer or financing source would
have been unwilling to provide the new business or capital if notice were
given. This condition may be satisfied if the employer can show that the
financing or business source would not choose to do business with a troubled
company or with a company whose workforce would be looking for other
jobs.
(b) For the purposes of this Part, the employer's actions will be viewed in a company-wide context. A company with access to capital markets or with cash reserves may not avail itself of this exception by looking solely at the financial condition of the single site of employment to be closed and doing so shall constitute a violation of the Act and this Part.
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