Colton Manufacturing shuts down 3 manufacturing facilities without prior notice to its 3000 employees. Colton has graciously offered to provide outsourcing assistance to its displaced employees and informed them of their right to continue to receive health insurance coverage through COBRA for eighteen months. Colton has no further liability to its former employees.

Question

Quizplus · Accepted Answer

Colton may still have liabilities under the Worker Adjustment and Retraining Notification (WARN) Act, which requires 60 days notice for large layoffs, and other potential legal obligations such as severance pay or unemployment benefits.

Colton Manufacturing Shuts Down 3 Manufacturing Facilities Without Prior Notice