About the Author Richard D. Alaniz is a partner at Alaniz Law & Associates, PLLC, a labor and employment firm based in Houston. He has been at the forefront of labor and employment law for over forty years, including stints with the U.S. Department of Labor and the National Labor Relations Board. Rick is a prolific writer on labor and employment law and conducts frequent seminars to client companies and trade associations across the country. Questions about this article, or requests to subscribe to receive Rick’s monthly articles, can be addressed to Rick at (281) 381- 2210 or
ralaniz@alaniz-law.com.
requirements of the federal WARN Act or any state WARN Act that may apply. The requirements are strictly enforced. Generally, for the federal WARN Act to apply, the company must have at least 100 employees and the layoff must affect at least 50 employees.
State WARN
Acts may have different thresholds for coverage.
In addition to ensuring WARN Act compliance, an employer must also comply with the state law requirements
for final pay, accrued vacation time, and similar matters.
This then raises
the related question of whether severance pay will be provided to laid off employees. If it is offered, it should without question be conditioned upon a full release of all potential claims that are subject to release. In the case of employees 40 and above, the release must comply with the provisions of the Older Workers Benefits Protection Act (OWBPA). The advantages of obtaining a full release are such that paying at least
some severance amount is well worth the cost.
It remains to be seen whether economic conditions will reach the point of causing significant layoffs. Hopefully we will not see a repeat of the circumstances that prevailed in 2008- 2009. Nonetheless, it is not too soon to at least give some consideration to how you would approach employee cuts should such a need arise.
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April 2025 ❘ 47 ®
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