New York Codes, Rules and Regulations
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

Current through Register Vol. 44, No. 51, December 21, 2022

(a) To qualify for this exception, the employer shall establish that at the time notice of the plant closing, mass layoff, relocation, or covered reduction in work hours 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 to enable the facility, operating unit, or site to avoid or postpone the plant closing, mass layoff, relocation, or covered reduction in work hours; 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.

(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.

Disclaimer: These regulations may not be the most recent version. New York may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.