Maine Layoff laws & compensation compliance analysis

Maine Layoff: What you need to know

While Maine has its own layoff notice requirement, state agencies also assist in enforcing the requirements of the federal Worker Adjustment and Retraining Notification Act (WARN Act).
The WARN Act imposes restrictions on the way layoffs are handled. It is designed to give employees advance notice of a layoff in order to find another job or to seek retraining in a new occupation and to give the state adequate preparation to assist the affected workers.
There is a comprehensive discussion of the WARN Act available.
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Maine employers with 100 or more employees that plan to relocate or terminate their business facility outside the state must notify employees and municipal officials of the town in which they are located, in writing, at least 60 days prior to the relocation or termination.
Maine employers with 100 or more employees that plan to reduce their business operations substantially or relocate their business facility 100 or more miles from its current location must notify the director of the bureau of labor standards in writing at least 60 days prior to the reduction or relocation (ME Rev. Stat. Tit. 26 Sec. 625-B [6,6A]).
Severance pay required. Maine also has a law requiring severance pay. Any employer who relocates or terminates employees because of a relocation or plant closing is liable to the employee for 1 week's pay for each year of employment at the establishment.
The severance pay to eligible employees must be in addition to any final wage payment to the employee and must be paid within 1 regular pay period after the employee's last full day of work (ME Rev. Stat. Tit. 26 Sec. 625-B [2]).
The WARN Act requires employers to notify ...

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