Severance packages aside, HSBC is again flying under the radar. The WARN Act is a legacy of an era when the economy was more dependent on manufacturers and legislators were concerned about blue-collar workers being locked out of their factory. That kind of shutdown is hard to hide, while white-collar layoffs spread across many locations are not.
The WARN Act requires 60 days’ notice, but the events that require notification are site-specific — a plant closing, a layoff of 500 or more people at one location, or a cut of at least one-third of the work force at a site.
If notification is not required, the standard practice at large companies is to give 30 days’ notice before a layoff. Some states have passed their own WARN Acts to cover more layoffs. California, for example, now requires a WARN notice when a company cuts 50 or more workers in one place. Last month, New York enacted a law requiring 90 days’ notice when laying off 250 or more workers at a site.
HSBC will no doubt argue that offices are different locations, and the WARN Act does not apply. It is hard to hide the fact that all HFC and Beneficial offices were shut down in one day. HSBC will no doubt argue that minimal staffing did keep the offices open.
Related posts:
