Notification requirements considered for mass layoffs, closures

Members of the Business and Labor Committee heard testimony Jan. 26 on a bill that seeks to provide state-level notification requirements in Nebraska for businesses experiencing mass layoffs or closures.

Under current federal law, businesses with 100 or more employees are required to submit notice when the business experiences a shutdown affecting 50 or more employees during a 30-day period, or when 500 or more employees — or 33% of the workforce — will permanently lose employment.

LB921, introduced by Sumner Sen. Teresa Ibach, would adopt the Nebraska Worker Adjustment and Retraining Notification Act. The act would require businesses that experience a mass layoff event or closure affecting 25 or more full-time employees for a period exceeding six months to notify employees and the state Department of Labor at least 60 days in advance of such event.

The act would apply to businesses with at least 25 employees. Businesses that do not provide adequate notice would be subject to a civil penalty not to exceed $100 for each day of the violation.

The bill also would make changes to the Non-English-Speaking Workers Protection Act, which requires businesses to provide an interpreter and referral agent if 10% of their staff speaks the same non-English language. Under the bill, referral agents would be required to develop and maintain a list of community services and assist employees in attempting to obtain those services.

Ibach said she introduced LB921 following the unexpected closure of a Tyson Foods plant, a major employer in her district, to ensure protections for other employees who may be facing a similar situation in the future.

Being laid off can be one of the most stressful events for employees and their families, Ibach said, and her bill could help mitigate that stress by providing advanced notice even when the federal triggering threshold is not met.

“Twenty-five jobs may not seem like a lot in Lincoln or Omaha, but in smaller communities, losing twenty-five jobs or more can be a massive hit and we should treat it as such,” Ibach said.

Rose Godinez testified in support of the measure, saying the meatpacking plant closure affected over 3,000 Lexington residents.

Community members who relied on those jobs are the ones who bear the real consequences of layoffs and closures, she said, not the multibillion-dollar corporations who own the businesses.

“It’s too late for Lexington, but [not] for every other Nebraska community that depends on a major employer to survive,” Godinez said.

Testifying in opposition to the proposal was Ryan McIntosh. Speaking on behalf of the National Federation of Independent Business, Nebraska Chamber of Commerce and Industry and a number of other business organizations, he said the measure would make it difficult for the state to attract and retain employers.

McIntosh said businesses weigh the regulatory climate when deciding whether to expand or relocate, and LB921 would make Nebraska one of the most restrictive states for business closures and layoffs.

“While we support efforts to ensure employees are treated fairly and have opportunities to adjust to business changes,” he said, “policies like LB921 must strike a balance with the viability and adaptability of Nebraska businesses.”

The committee took no immediate action on the bill.