Objective

To assess the extent of implementation of the four recommendations included in our initial audit report, Services to Workers Under the Worker Adjustment and Retraining Notification Act (Report 2022-S-11).

About the Program

The Department of Labor’s (DOL) Division of Employment and Workforce Solutions administers the State's Worker Adjustment and Retraining Notification Act (Act) and provides related services. Enacted in 2008, the Act requires covered employers to give early warning to employees—defined as at least 90 days' advance notice (Notice)—of a mass layoff, relocation, or employment loss, with some exceptions. This advance notice protects employees—as well as their families and communities—by giving them time to transition, seek new employment, and enter workforce training programs. Employers must also file a Notice with DOL, which prompts DOL staff to offer Rapid Response service, such as job search and résumé preparation assistance, career counseling, and occupational skills training, to assist workers in obtaining re-employment as soon as possible. Employers may claim an exemption to the 90-day requirement under some circumstances. Employers that fail to submit a Notice at least 90 days prior to the event and are not exempt may be liable for back pay and the value of any benefits that laid-off employees would have been entitled to.

The objectives of our initial audit, issued June 21, 2023, were to determine whether DOL was providing appropriate and timely services to workers affected by closings and layoffs that are covered under the Act, and whether it was effectively overseeing employer compliance with the Act. The audit covered WARN Notices received by DOL that were dated January 2019 through April 2022. We also considered DOL activities related to these Notices through January 2023. The audit identified several areas DOL could improve to better meet its obligations under the Act. Specifically, there were weaknesses in DOL’s oversight of employer compliance with the advance warning requirement. The audit also identified examples of WARN Notices that were not entered into DOL’s One-Stop Operating System, the system used to record related services to employers and affected employees. Further, DOL staff were often late in attempting initial outreach to employers that submitted Notices and to affected employees, and in some cases, there was no record of any outreach. Our audit report included four recommendations to DOL to address these issues.

Key Finding

DOL officials have made substantial progress in addressing the issues we identified in the initial audit report. Of the initial report’s four audit recommendations, three have been implemented and one has been partially implemented.

Key Recommendation

DOL officials are requested, but not required, to provide information about any actions planned to address the unresolved issues discussed in this follow-up within 30 days of the report’s issuance.