Q: "Is it legal for the owner of a restaurant to close permanently without any warning to the employees. They told us before we left for the day that we will have no job to come back to." -- Cleveland, OH

Answer:

WARN (The Worker Adjustment and Retraining Notification Act)

If your employer had more than 100 employees, who each worked more than 20 hours a week and have been employed for at least 6 months, then your employer is most likely covered by WARN. WARN states that employers must give employees at least 60 days notice of termination for closings or sales of the business. There are some narrow exceptions for unforeseen closings, so you will want to consult with an attorney regarding the specifics. You can learn more about WARN and other federal regulations at the US Department of Labor at http://www.dol.gov.

"At-will" Employment

Otherwise, generally no notice is required. However always check with your state labor commission. For Ohio, you can find information at http://www.state.oh.us/ohio/agency.htm

Most employment situations are based on the concept of employment being "at-will" meaning that each party may end the arrangement at any time. Just as you can quit at any time, you can be fired at any time too. This is the basic concept, although there are lots of exceptions for wrongful termination, whistle-blowing termination, termination based on sex, race, religion, etc., sexual harassment and so on which depend on state and federal law and your circumstances.

Upon Termination

Under Federal law, your employer must give you your final paycheck by the time it is normally due. It does not have to be paid on your last day of work. However, some state laws do require this. Additionally, your employer does have to pay you for all wages owed and the value of any vacation or sick day accrued. If you have not received back wages or do not receive your final check by your normal pay day, you should contact your local US Department of Labor office and state labor commission.

If your employer had 20 or more employees and a health plan, then you are probably also eligible for continued health insurance coverage, at your expense, under the Consolidated Omnibus Budget Reconciliation Act (COBRA). And, finally, contact your local labor department about filing for unemployment benefits.

All answers are general in nature, not legal advice and not warranted or guaranteed. Readers are cautioned not to rely on this information. Because laws change over time and in different jurisdictions, it is imperative that you consult an attorney in your area regarding legal matters and an accountant regarding tax matters.

1 Readers are cautioned not to rely on this article as legal advice as it is
no substitution for a consultation with an attorney and an accountant in your state. Based
on jurisdiction and time, the law varies and changes.