Annenberg Classroom - Speak Outs - Should states require employers to give 60 days’ notice before closing shop?

Speak Outs

Speak Out

Should states require employers to give 60 days’ notice before closing shop?

Charlie Brown’s Steakhouse was a New Jersey establishment with locations throughout the state. But when the company that owns the popular chain went bankrupt, it abruptly closed 13 of its restaurants, suddenly leaving 1,900 New Jerseyans without a job.

“No one deserves to be shoved out the door in this or any economy without the fairness of advanced notice,” said Assemblyman Nelson Albano. That is why Albano joined with other state legislators to draft a bill that would require larger companies to provide 60 days’ notice of closing and mass layoffs.

The eight-hour-a-day, five-day workweek may seem like the standard for full-time employment, but it was not always standard practice. After the Civil War, the U.S. economy was rapidly industrializing, and factory workers often worked 12 hours a day every day of the week. With the rise of the labor movement, workers began demanding rights such as safer workplaces and shorter work days. Throughout the 1880s to the 1930s, unions fought for the eight-hour work day and won.

State law requires notices to be given by single establishments, not a chain or franchise. So companies like the holding company for Charlie Brown’s do not have to give notice when they lay off all their employees. The bill would change that, requiring larger companies that have several small operations like restaurants or franchises to give two months’ notice if they are going to have massive layoffs.
“The Legislature has been pushing hard to create jobs and improve our business climate, but employees have rights, too, especially when dealing with large franchisers who see fit to close without notice,” said Assemblyman Wayne DeAngelo.

“What we’re trying to do here is give the residents of the state of New Jersey an opportunity to get themselves together to be prepared for this life-changing layoff,” he said. “We want to ensure their stability as we try to rebound New Jersey’s economy.”

Not everyone is in favor of the bill, saying that it would discourage companies that may want to expand into New Jersey. They argue that instead of helping those who may lose their jobs, it will hurt people looking for jobs because companies will expand elsewhere instead of opening up restaurants and franchises in New Jersey.

What do you think?

Should states require companies to give 60 days’ notice before a mass layoff? Would this help prepare their employees? Would this bill, if passed into law, deter a company from setting up shop in New Jersey? How much notice would be fair to employees who will be laid off? Join the discussion and let us know what you think!

Join the Discussion

Your First Name:
Your Teacher/School:
Your City/State:
Your Comment: limited to 2000 characters including spaces

Thank you for commenting.
Your comment is awaiting approval.
Click here to view all Speak Outs

Comments

5/11/2012
porterville

salinna
smith/mhs
i believe that they should tell them ahead of time before they are shutting down. since everyone doesnt have the oppurtunity to get a job in this econoy. Though that wouldnt be fair to the employers. They would have enough time to find a new job. THus they sheould tell them since there familes could be in troulbe.

10/7/2011
Sidney, Mt

Brad
Mr. Faulhaber
Yes, States should require at a minimum of 60 days because people would like to have some time to find a new job instead of being unemployed for a while.

4/4/2011
Greencastle, PA

Kristen
Greenastle-Antrim High School
I think that it is only fair to allow a certain amount of prior notice before closing a shop. This is not only for the workers, but also for the community that the shop is located in. The WARN act states that, if an employer orders a plant closing or mass layoff, it is required to provide notification to the employees or their representatives, the state dislocated worker units, (so that they can promptly offer dislocated worker assistance), and the chief elected officials of local governments. Basically, it’s saying that workers need a heads up, because they can’t just be laid off with no time to seek another opportunity. It’s just not fair to the employees of a business to be laid off without a warning. I think a good amount of time, for a heads up, would be at least 50 to 60 days. Being given this time to look for new jobs and applying for those jobs not only helps the employees, but it also helps the employers; because they’ll have less complaints from their former employees. Over all, I just think it’s a good idea to be given a heads up before a mass layoff.

3/10/2011
Seattle WA

Havelock Vetinari
K. Hansen/HRC
I have to agree that a bill that requires at least some notice is a good idea. In this economic environment having your job suddenly taken away from you could be a terrible blow to them. The effects of something like this happening can be quite horrible; homelessness, divorce, alcoholism, drug addiction, suicide, and crime to name a few. If a company is going to lay someone off they need to be required to give notice so as to allow the employee the opportunity to make the proper preparations. The companies are potentially putting their employees in harms way and this needs to be addressed.

3/4/2011

Austin B.
Mr. Thomas, Greencastle PA.
An economy that is gradually decreasing makes shops all around the nation to go out of business. When the economy began to go down in 2010 my dad went out of business for more than half the year because no one had the money to get new flooring. My uncle that lives in Tennessee worked in a meat market and when the boss found out he had to close down within 60 days he never told his employees until the day before he closed down shop. My uncle was upset when he knew he didn’t have time to gather up his belongings and try to find a job right after his meat marketing days. According to http://www.dol.state.ga.us/em/warn_em.htm employment losses become more common from workplaces that don’t remind their employees of the shut down. I think that we should always keep employees up to date on when their workplace shuts down.

3/3/2011

Mauricio N.
Bradley/Nimitz High School, Irving,TX
I do not see why a company would not expand into New Jersey just because they have to announce lay-offs in 60 days. This would rather make bussinesses look bad if the company had to lay-off some workers last minute. The companies should let each restaurant establishment know its economic hardships. This bill would save time for the workers and even time for other people that want to expand into New Jersey.I would personally change the 60 days to a 30 days notice because I believe that it is the appropiate amount of time a person can find another job with another company that will be expanding.

3/2/2011

Jennifer K
Bradley, Irving/TX
I believe that out of common courtesy, it would be best for large corporations to allow their employees a 60-day notice before a large lay-off. After dealing with a lay-off within my own family, I can truly sympathize with those Charlie Brown employees in New Jersey. Finding a job has been a long and difficult process for many people nation-wide, and job security is valued probably higher than ever. Especially because this is the case, a 60-day notice would at least allow employees to have a sufficient amount of time to prepare for the lay-off by either getting a job elsewhere or figuring out what their next step will be.

2/28/2011

Kelsey
GAHS, Greencastle, PA
I think that it is the right thing for businesses to give 60 day notice before closing shop. I think this would just be a common courtesy of the people, so they can have some time to start making arrangements for whenever they will no longer have a job there. According to accessmylibrary.com, Brown Shoe Company was sued by former employers because they started laying off people before even sending a 60 day notice letter to them. I believe it is a good thing for the business to be required by law to let the employees know 60 days in advance of a mass layoff. This will help many people out in the long-run.

2/25/2011

Wendy
Greencastle-Antrim High School, Greencastle, PA
I strongly believe that there should be a bill passed requiring larger companies to provide 60 days’ notice of closing and mass layoffs; this way the people who were employed there have time to try and find another place to work. Charlie Brown’s Steakhouse was a New Jersey establishment with locations throughout the state. But when the company that owns the popular chain went bankrupt, it abruptly closed 13 of its restaurants, suddenly leaving 1,900 people without a job. Assemblyman Nelson Albano said, “No one deserves to be shoved out the door in this or any economy without the fairness of advanced notice.” That is why Albano joined with other state legislators to draft a bill to require these larger companies to provide a notice of closing. In Texas, in 2008, the parent company of Bennigan’s, an Irish-themed bar and grill with about 200 sites across the country, filed for bankruptcy, a move that would put hundreds of employees out of work. I think that businesses that employ so many people should be required to notice their employees when something like this occurs. Not only are the businesses put in a dilemma themselves, but if they do not notify their employees of the closure, then the employees do not have a chance to find a job before they become completely jobless.