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  1. #1
    Join Date
    Jun 2008
    Posts
    273

    Default Under the WARN Act Can Company Open New Office in Same City its WARN Location Closure

    My question involves labor and employment law for the state of: Ohio

    My company is closing a facility and laying off 60 people. We all got WARN notices.

    Myself and 2 others were offered relocation to another city where this company does business, but we all want to stay in this city. We were denied work-from-home.

    We would like our employer to lease space for us from a local business that rents out individual offices. The new office space would be in the office building immediately next door to the facility that is being closed.

    My questions:
    - After an office closure covered by WARN, is there any legal reason that this company cannot lease space for us in the same area?
    - Is there a time or distance exclusion before they "open a new facility"?
    - Do other laid-off workers have any recourse against the company, ie "You must lease office space of US too"?

    Of course the company could just say "No" and that would be the end of it... I just wanted to know if it's even legally allowed before we ask.

  2. #2
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Warn: Can Company Open New Office in Same City As a Warn Location Closure

    The answer to all three of your questions is no. However, the company has absolutely no incentive to respond positively to your request, and I can see several possible downsides, to them, to their doing so, so I wouldn't hold out a lot of hope for a positive response.

  3. #3
    Join Date
    Jun 2008
    Posts
    273

    Default Re: Warn: Can Company Open New Office in Same City As a Warn Location Closure

    Thanks for your response. What downsides do you see? If we lease the space instead of relocating then we'd save the company over $100k in relo costs, plus salaries in the new city are all $30k higher than here, so we'd save them 3x30K-rental = $80k/year ongoing savings. Would the downsides you see be bad enough to overcome the cost savings? The new location is a full service facility that provides power/network/phone/kitchen/insurance/etc.

    Is there something else I need to address or prepare for when I meet with the director to give him my proposal?

    I understand the company has final say, they always do.


    Thanks again for your response. I appreciate your time!

  4. #4
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: Warn: Can Company Open New Office in Same City As a Warn Location Closure

    There are always costs to what is essentially keeping two locations open instead of only one. If they're opening a facility in a new city that space is going to cost the same whether you relocate there or not, so any costs associated with the lease will be in excess. Depending on how far away the two cities are from each other, they might need to double up on the costs of benefits. If by chance the two cities are in different states they will have additional costs for maintaining a location in two states instead of one, plus double the workers comp costs and the UI tax costs. All of these are on-going costs. They'll have phone bills in the leased facility; maintenance costs; utility costs; all over and above what they'd be paying in their full service facility.

    Then since I doubt they'll be willing to let you work completely unsupervised, there will be periodic travel costs for someone in management to come out to your location, or for you to make periodic trips to the new location.

    And that's just what rolls off the top of my head in the first five minutes. I'm sure given enough time I'd think of some others.

  5. #5
    Join Date
    Jun 2008
    Posts
    273

    Default Re: Warn: Can Company Open New Office in Same City As a Warn Location Closure

    Understood. I'll make sure we try to address these points. If it works out then it works out great, otherwise.. well, it was worth a shot.

    Thanks again for your time!

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