Layoff Resources
Layoff Resources for Employers
What help is available to avoid layoffs?
To help avoid business downturns, resources are available to help you grow your business, become more efficient and remain competitive.
Employee Training. A well trained workforce can help you compete and be more profitable. Incumbent worker training programs may be available to help you upgrade your workers’ skills.
State incumbent worker programs are created under the Workforce Investment Act. Local Wisconsin Job Centers are the contact for these programs. The U.S. Department of Labor has information and resources on training programs including Adult Training Programs
Personnel Management. Many resources exist on the Internet assist business owners to better manage their businesses. Managing your employees can be critical to the success of a business. A search using keywords and search engines will turn up many helpful articles on topics such as:
- Managing to avoid layoffs
- Managing the layoff to avoid pitfalls
- Managing the survivors of downsizing
- The costs of downsizing
Several examples are:
- BLR: Business and Legal Reports on Layoff
- What You Need to Know About Layoffs and Downsizing Strategies and Alternatives to Layoff
- Society for Human Resource Management (SHRM) has many articles.
- Business.gov from the Small Business Administration has plain English explanation of legal issues.
Note: Links from the Department on the World Wide Web to other sites do not constitute an endorsement from the Department. These links are provided as an information service only. It is the responsibility of the web surfer to evaluate the content and usefulness of information obtained from other sites.
Business Development. A number of state and federal agencies can help existing businesses expand and become more efficient.
- WI Small Business Development Centers
- Small Business Administration-Wisconsin
- Wisconsin Department of Commerce
- U.S. Department of Commerce
- University Extension Service
- Manufacturing Extension Partnerships are a nationwide network of not-for-profit centers in over 400 locations nationwide, whose sole purpose is to provide small and medium-sized manufacturers with the help they need to succeed.
- SCORE, "Counselors to America's Small Business", is a nonprofit association dedicated to providing entrepreneurs with free, confidential face-to-face and email business counseling.
- US Department of Agriculture's Rural Business-Cooperative Service assists businesses in rural areas.
- Wisconsin Farm Center provides services to Wisconsin farmers and agribusinesses to promote the vitality of the state's agricultural economy and rural communities.
You may also want to consider selling your business as an alternative to closing the business. The business may be saved by selling to a buyer, several buyers, a management group or employees who can bring new resources to the enterprise. The resources listed above can provide information on the advantages of selling. There are organizations specializing in employee ownership. They can be found with an Internet keyword search.
What help is available for layoffs?
Rapid Response Services are designed to respond to layoffs and business closings. Your State Dislocated Worker Unit can help you manage the multiple priorities created by your layoff at no cost to you. The sooner workers start to manage the transition, the better the outcome for themselves and you, the employer. Studies show that the change can be smoother once your workers know that you are concerned about their transition. Rapid Response can help you:
- Better manage human resource needs, Unemployment Insurance costs, and Workers' Compensation costs during the transition.
- Assist affected employees to return to work and maintain their standard of living.
- Demonstrate good corporate citizenship in the community.
Workforce Adjustment Committees have proven to be an effective tool in managing a layoff event. Your Dislocated Worker Unit may be able to provide financial or technical assistance to you in establishing a Workforce Adjustment Committee.
Contact your local Wisconsin Job Center for more information.
What services are available for my workers?
Re-employment services are available through Wisconsin Job Centers and the Workforce Investment Act. This can include job search assistance and job related training.
All workers have access to core services like those listed below through a local Wisconsin Job Center and online through Wisconsin Job Center.org. This is the first step in obtaining information such as:
- Unemployment Insurance
- Pension Benefits and Health Insurance coverage
- Job Search Assistance
- Job Center of Wisconsin for Wisconsin local job openings
- Job Central national labor exchange for job openings in other states
- Resume Assistance
- Job Training
- Career planning assistance
If you are laying off workers due to direct or indirect import competition or because you shifted production outside this country, individualized assistance may be available to help your workers under the Trade Adjustment Assistance (TAA) program. As an employer, you may file a Trade Act Petition on behalf of your workers. This assistance for your workers is provided at no cost to you. The National Employment Law Project has a practical guide to help with filing successful petitions.
Trade Readjustment Allowance (TRA) is a weekly allowance payable to an adversely affected worker enrolled in, or waived from, training after entitlement to unemployment compensation has been exhausted.
The North American Free Trade Act (NAFTA) helps workers affected by trade with Canada and Mexico. August 6, 2002, the TAA Reform Act reauthorized the Trade Adjustment Assistance (TAA) and consolidated NAFTA into TAA. For more information see the Trade Adjustment Assistance Reform Act of 2002.
Alternative Trade Adjustment Assistance (ATAA) program for older workers. ATAA is a new program that provides eligible individuals over the age of 50 who obtain new employment within 26 weeks of their separation with a wage subsidy to help bridge the salary gap between their old and new employment. The program was designed to provide assistance to workers for whom the retraining offered under the regular TAA program may not be appropriate.
To be eligible for Trade Act programs a petition must be completed at the time of the layoff or business closing on the behalf of affected workers. Petitions can be filed by the affected business, a group of affected workers, or an organization representing the affected workers.
Trade Act Petition forms are available at your local Wisconsin Job Center or online at Trade Act Programs: Petitions
To track the status of a petition go the U.S. Department of Labor Trade Act Programs: Petition Determinations web page. This can be searched by petition number, state, company name, or SIC number for the decision regarding the petition. This covers both TAA and NAFTA TAA determinations.
Contact your local Wisconsin Job Center for more information.
What about pension and health benefits?
Your employees may be entitled to certain pension protections and health benefits. If your company provided a group health insurance plan, your employees may be able to continue health benefits for a period of time. The U.S. Department of Labor, Employee Benefits Security Administration. provides information on Pension and Health Care Coverage for Dislocated Workers.
Health Coverage Tax Credit (HCTC) is available to TAA, TRA and ATAA recipients. HCTC is a Federal tax credit that pays 65% of the qualified health plan premiums paid by eligible individuals.
Eligible individuals can use HCTC to help purchase health coverage for yourself and your qualified family members. They must be enrolled in a qualified health program.
There are two ways to claim the credit.
- They can register to receive advance payment of the credit on a monthly basis.
- They can claim the HCTC when they file their Federal income tax return.
www.wisconsinjobcenter.org has more information on healthcare options for the unemployed.
What are the legal issues?
Employers in some situations are required by Federal and Wisconsin law to provide workers with notice of business closings and mass layoffs.
Wisconsin's Business Closing (Plant Closing) and Mass Layoff Law provides that with certain exceptions, businesses employing 50 or more persons in the State of Wisconsin must provide written notice 60 days before implementing a "business closing (plant closing)" or "mass layoff" in the state.
A "business closing (plant closing)" requires notice if there is a permanent or temporary shutdown of an employment site or of one or more facilities or operating units within a single municipality that affects 25 or more employees (not including "new" or "low-hour" employees).
A "mass layoff" is at least 25% of the workforce or 25 employees, whichever is greater; or at least 500 employees.
Federal Business Closing Notification Law, the Worker Adjustment and Retraining Notification (WARN), helps ensure advance notice in cases of qualified plant closings and mass layoffs. The U.S. Department of Labor has issued a workers and employers guide to this law.
For more information see the U.S. Department of Labor E-Laws Advisor
Are you out of business because of a natural disaster?
Disaster Unemployment Assistance provides financial assistance to individuals whose employment or self-employment has been lost or interrupted as a direct result of a major disaster declared by the President of the United states. Before an individual can be determined eligible for Disaster Unemployment Assistance, it must be established that the individual is not eligible for regular unemployment insurance benefits.
In addition, workers or self-employed individuals (including farmers or other small business owners) who are unemployed as a result of a natural disaster may qualify as a dislocated worker.
Contact your local Wisconsin Job Center for more information.
Are you out of work because of a farm or self-employed business failure?
Self-employed individuals (including farmers or other small business owners) who are unemployed as a result of economic conditions in their area may qualify as a dislocated worker. Wisconsin Job Centers also provide services to assist with finding employment.
Farmers affected by foreign competition may qualify for Trade Adjustment Assistance for Farmers.
The Wisconsin Department of Agriculture's Wisconsin Farm Center provides services to Wisconsin farmers and agribusinesses to promote the vitality of the state's agricultural economy and rural communities. These include Financial Counseling and Advising and Farm Mediation. They have a Farm Center Helpline at 1-800-942-2474. Services are confidential and free.
For more information on rural assistance, see Rural Development Online from the U.S. Department of Agriculture.
Contact your local Wisconsin Job Center for more information.
Who to contact for help?
Contact you local Wisconsin Job Center at www.wisconsinjobcenter.org or 1-888-258-9966
Other Web Resources
- www.wisconsinjobcenter.org Your connection to Wisconsin Job Centers in 78 locations.
- www.wisconsin.gov Your connection to State of Wisconsin government agencies.
- Wisconsin Department of Workforce Development
- Wisconsin Unemployment Insurance
- Wisconsin Workers Compensation
- WI Small Business Development Centers
- Small Business Administration-Wisconsin
- Wisconsin Department of Commerce
- University Extension Service
- Manufacturing Extension Partnerships
- U.S. Department of Commerce
- U.S. Department of Labor
- Career OneStop Business Center
- Employee Benefits Security Administration, U.S. Department of Labor
- Working for America. AFL-CIO site promoting "high road" solutions to workforce and business development.
- National Brownfield Associations. National Brownfield Associations (NBA) is an international umbrella organization of national associations focused on the responsible redevelopment of brownfields.