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Summary of difference between federal and state regulations
Massachusetts has statutes that cover plant closings involve reemployment assistance for terminated employees, and billing of assistance benefits to employers.
Some plant closings or mass layoffs fall under the federal Worker Adjustment and Retraining Notification Act (WARN). Under WARN, employers are required to provide 60 days’ advance notice of covered plant closings and mass layoffs, notify the affected workers or their representatives, and the appropriate governmental units. See WARN for more information.
WARN does not preempt any other federal, state, or local law, or any employer/employee agreement that requires other notification or benefit. Rather, the rights provided by WARN supplement those provided by other federal, state, or local laws.
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Regulations
Chapter 151A, Section 71A.Definitions.
As used in section 17B to 71G inclusive, the following words shall unless the context clearly requires otherwise, have the following meanings:--
"Advance notification", a voluntary declaration in writing given by the employer to the employee or to the employee's authorized collective bargaining agent that a plant closing will occur.
"Commissioner", the director of the department of labor and workforce development, established by section one of chapter twenty-three.
"Covered partial closing", a partial closing which the commissioner has determined under the provisions of section seventy-one C, to be covered by the provisions of section seventy-one B to seventy-one G, inclusive.
"Date of certification", the actual or anticipated date of plant closing or covered partial closing as determined by the commissioner.
"Date of notification", the date of announcement by the employer or the commissioner, whichever is earlier, of a plant closing or covered partial closing as determined by the commissioner.
"Eligibility period", the period consisting of the weeks in an employee's benefit year which consist of the employee's first compensable week and the next twelve consecutive weeks following the date of notification or the date of certification, whichever is earlier.
"Employee", an individual who is or has performed services for wages, whether full-time or part-time, at a facility, who at the point of termination has received said wages for the past four quarterly periods from the employer or its predecessor, and who is otherwise eligible for unemployment benefits, excluding any individual employed by an employer engaged in a seasonal enterprise as defined by the commissioner.
"Employer", an individual, corporation, or other private business entity, whether for profit or not-for-profit, except an employer engaged in a seasonal enterprise as defined by the commissioner, which owns or operates a facility, at least one year.
"Facility", a plant, factory, commercial business, hospital, institution or other place of employment located in the commonwealth which had fifty or more employees, as defined in this section, during any month in the six month period prior to the date of certification.
"Group insurance policy", a medical insurance policy provided by an employer for its employees, in accordance with the provisions of either chapter one hundred and seventy-five, one hundred and seventy-six A, one hundred and seventy-six B, or chapter one hundred and seventy-six G.
"Health Insurance Benefits Fund", the fund established by section seventy-one E to finance the health insurance benefits in accordance with the provisions of section seventy-one G.
"Industrial Advisory Board" or "Board", the body, established by section one hundred and ninety of chapter six for the purpose of advising certain officials of the commonwealth on the implementation of certain provisions of this chapter and on possible future policies.
"Partial closing", a permanent cessation of a major discrete portion of the business conducted at a facility which results in the termination of a significant number of the employees of said facility and which affects workers and communities in a manner similar to that of plant closings.
"Plant closing", a permanent cessation or reduction of business at a facility which results or will result as determined by the director in the permanent separation of at least ninety per cent of the employees of said facility within a period of six months prior to the date of certification or with such other period as the director shall prescribe, provided that such period shall fall within the six month period prior to the date of certification.
"Reemployment assistance benefits", the supplemental benefits established by section seventy-one F for employees who have been terminated by plant closings and covered partial closings.
"Reemployment Assistance Fund" or "Fund", the fund, established by section seventy-one E, to finance the reemployment assistance benefits.
"Reemployment assistance program", the regional and plant-specific services provided pursuant to section seventy-one D for the purpose of assisting employees terminated by plant closings and partial closings to secure new jobs or training.
"Separation pay", the maintenance by an employer or a labor union of an employee's wages following his termination.
"Termination", the permanent layoff of an employee from the employ of an employer, provided however, that an employee who is offered continued suitable employment as defined in subsection (c) of section twenty-five by his employer at another workplace owned or operated by said employer shall not be deemed to have been laid off.
"Wages", as defined in section one and remuneration paid to an employee for employment by an employer during the previous four quarterly periods; provided, however, that for the purpose of determining eligibility for reemployment assistance benefits, remuneration shall include unemployment insurance benefits paid for weeks of unemployment occurring during said previous four quarterly periods; and provided further, that all or part of such benefits are attributable to service in the employ of the plant closing or partial plant closing employer.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71a
Chapter 151A, Section 71B.Closing of facility; report; certification; notice; hearing; appeal.
Section 71B. (a) Every employer who is closing a facility, as defined in section seventy-one A, shall thereupon promptly report to the commissioner, in such form and manner as the commissioner prescribes, such information as may be necessary to determine an employee's reemployment assistance benefits rights under section seventy-one A to seventy-one G, inclusive. The commissioner, after making such inquiries and investigations as deemed necessary, shall certify whether a plant closing has occurred or will occur. The commissioner shall certify that a plant closing has or will occur if the commissioner determines that at least ninety per cent of the employees of a facility have been or will be permanently separated within the six month period prior to the date of certification or within such other period as the commissioner shall prescribe; provided that, such period shall fall within six month period prior to the date of certification. The commissioner shall give notice of the determination regarding certification to the employer and if the employees are represented by a labor union to such union and to any other person or organization that the commissioner determines is an interested party.
(b) Any interested party notified of a determination under this section may request a hearing within ten days after mailing of the notice of the determination. If a hearing is requested, the commissioner or the commissioner's authorized representative shall afford all interested parties a reasonable opportunity for a fair hearing, except that the commissioner may refer the case to the board of review of hearing and decision in accordance with subsection (d) of section forty-one. The conduct of such hearings before the commissioner or the board of review, as the case may be, shall be in accordance with the procedures prescribed by and pursuant to subsection (b) of section thirty-nine. Any interested party aggrieved by any decision on certification may appeal such decision. Such appeal shall be in accordance with the procedures prescribed in sections forty through forty-two inclusive.
(c) The commissioner shall report, from time to time, to the secretary of economic affairs and the industrial advisory board any determination or decision made pursuant to this section and may provide such information to any other interested individual or organization.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71b
Chapter 151A, Section 71C. Partial closings; identification; regulations; eligibility for reemployment assistance benefits.
Section 71C. Subject to appropriation, the commissioner shall, in consultation with the Massachusetts industrial advisory board, identify and assess various categories of partial closings. Subsequently, the commissioner shall, by regulation, identify those partial closings that are deemed to fall within the intent of sections seventy-one A to seventy-one G, inclusive. Any proposed regulations to be issued pursuant to this section shall be filed with the clerk of the house and the clerk of the senate thirty days before publishing a notice of a public hearing, pursuant to section two of chapter thirty A. Subject to appropriation, employees whose employment is terminated in covered partial closings established by said regulations shall be eligible for the reemployment assistance benefits established by section seventy-one F and health insurance benefits established by section seventy-one G.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71c
Chapter 151A, Section 71D. Reemployment assistance program.
Section 71D. Subject to appropriation, the director of economic development, in coordination with the director of labor and workforce development, and any other appropriate agency, shall establish a reemployment assistance program to provide counselling, placement, training, and any other services deemed necessary, to employees terminated in plant closings and partial closings which will lead to the reemployment of said employees. Such services shall be provided either at a plant closing site, at local offices of the division of employment and training or at a site provided by any other appropriate agency. Said reemployment assistance program shall be administered by the director of labor and workforce development and the director of economic development through the industrial services program. Participation in said program when said program is available shall be a requirement for eligibility for reemployment assistance benefits established pursuant to section seventy-one F.
Subject to appropriation, the director of workforce development, in coordination with the secretary and with any other appropriate agency, shall establish a reemployment assistance program to provide counseling, placement, training, and any other services deemed necessary, to employees terminated in plant closings and partial closings which will lead to the reemployment of said employees. Such services shall be provided either at a plant closing site, at local offices of the division of employment and training or at a site provided by any other appropriate agency. Said reemployment assistance program shall be administered by the director of labor and workforce development and the director of economic development through the industrial services program. Participation in said program when said program is available shall be a requirement for eligibility for reemployment assistance benefits established pursuant to section seventy-one F.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71d
Chapter 151A, Section 71E.Reemployment Assistance Fund; Health Insurance Benefits Fund.
Section 71E. There is hereby established a Reemployment Assistance Fund and a Health Insurance Benefits Fund which shall be administered by the commissioner, without liability on the part of the commonwealth beyond the amounts credited to and earned by the funds. Such funds shall consist of all moneys credited to the funds as provided in this section, less payments made therefrom in accordance with sections seventy-one F and seventy-one G. Moneys in the Reemployment Assistance Fund shall be pooled and available to pay reemployment assistance benefits under section seventy-one F and moneys in the health insurance benefits fund shall be pooled and available to pay health insurance benefits under section seventy-one G irrespective of the source of such moneys. Such funds may receive moneys from appropriations and any other revenue source that the general court may from time to time establish. Moneys in the funds shall not be commingled with moneys in the Unemployment Compensation Fund established by section forty-eight.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71e
Chapter 151A, Section 71F.Eligibility for reemployment assistance benefits.
Section 71F. (a) An employee shall be eligible to receive reemployment assistance benefits with respect to any week of unemployment in his or her eligibility period, as defined in section seventy-one A, only if the commissioner finds that with respect to such week (1) the employee has been terminated from their employment as a result of a plant closing or covered partial closing, (2) the employee is otherwise eligible for regular benefits under this chapter, and (3) the employee is participating in the reemployment assistance program, when such program is available, in accordance with the provisions of section seventy-one D; provided that, no reemployment assistance benefits shall be paid for any week commencing prior to the date of notification as determined by the commissioner.
No person eligible for reemployment assistance benefits shall be denied such benefits during his eligibility period because said person has refused to apply for or to accept employment which is not suitable employment, as defined in section twenty-five.
(b) The weekly reemployment assistance benefit amount payable to an employee for a week of total unemployment in his eligibility period shall be an amount equal to the difference between the weekly benefit amount, including dependency benefits, payable to the employee during the benefit year and seventy-five per cent of the employee's average weekly wage, rounded to the next lower full dollar amount; provided that, such amount shall not exceed the amount specified in subsection (d).
(c) The total amount of reemployment assistance benefits payable to any eligible employee with respect to the employee's benefit year shall be thirteen minus the number of weeks advance notification was given to the employee by the employer minus the number of weeks of separation pay, or equivalent thereof, received by the employee from the employer, times the employee's weekly reemployment assistance benefit amount.
(d) The maximum weekly reemployment assistance benefit amount payable to an employee shall be ninety-seven dollars; provided however, as of the first Sunday of October of each year commencing after December thirty-first, nineteen hundred and eighty-four the maximum amount payable shall increase by the percentage increase in the maximum weekly benefit rate computed under subsection (a) of section twenty-nine. Such new amount, rounded to the next lower full dollar amount, shall apply only to an employee whose benefit year commences on or after the first Sunday of October of the applicable year and prior to the first Sunday of October of the following year.
(e) No weekly reemployment assistance benefit amount shall be paid to an employee where the amount of regular benefits otherwise payable to the employee has been reduced to zero as a result of the application of subsection (b) of said section twenty-nine or subsection (d) of paragraph (6) of said section twenty-nine.
(f) Except when the result would be inconsistent with the provisions of section seventy-one A to seventy-one G, inclusive, the provisions of this chapter which apply to claims for, or the payment of, regular benefits shall apply to claims for, and the payment of reemployment assistance benefits.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71f
Chapter 151A, Section 71G. Eligibility for health insurance benefits.
Section 71G. (a) An employee eligible to receive reemployment assistance benefits under section seventy-one F shall also be eligible to receive health insurance benefits during his or her eligibility period if (1) the individual was, at the time of termination covered by an individually purchased health insurance plan, and (2) the individual is not able to be covered under any health insurance plan carried by a member of the family.
For the purpose of this section, the eligibility period shall commence with the effective week of the claim for regular benefits and end at the completion of three calendar months, or the completion of the month during which reemployment was obtained, whichever is less. The payment of health insurance benefits shall terminate at the end of the month during which employment was obtained.
(b) The maximum health insurance benefits amount shall be the amount of the monthly insurance premium, but not to exceed three months. Such amount shall be paid in accordance with the procedures prescribed by the commissioner. In formulating said procedures and other regulations governing this section, the commissioner shall consult with the commissioner of insurance.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71g
Chapter 151A, Section 71H. Plant closing employers; bills for reemployment assistance benefits.
Section 71H. (a) At the end of each calendar month, or at the end of any other period as determined by the commissioner, the commissioner shall bill each certified plant closing employer or covered partial closing employer an amount equal to one hundred percent of the amount of reemployment assistance benefits paid under section seventy-one F, provided that eligibility for such benefits is attributable to service in the employ of such employer.
(b) Payment of any bill rendered under paragraph (a) shall be made not later than thirty days after the commissioner mails such bill to the last known address of the employer, unless not later than thirty days after the commissioner mails the bill, the employer files an application for review by the commissioner. The application shall set forth the grounds for such application. The grounds shall be limited to the identities of the individual and the employer and the amount to be charged. The commissioner shall review the application. Thereafter, notice of the commissioner's determination shall be mailed to the employer. This determination shall be final and not subject to any appeal.
(c) All payments received pursuant to this section shall be credited to the General Fund.
(d) Past due payments of amounts owed under this section shall be subject to the same interest and penalties that apply to past due contributions pursuant to section fifteen.
(e) Default in payment of amounts owed under this section by an employer shall not in any manner adversely affect the rights of an employee otherwise eligible for reemployment assistance benefits.
(f) Except where inconsistent with sections seventy-one A to seventy-one H, inclusive, the provisions of this chapter, including the provisions of section forty-seven, which apply to the collection of contributions or payments in lieu of contributions, shall apply to the same extent to the collection of amounts owed under this section; provided, however, that said amounts shall not be credited to the employer's account or the solvency account established pursuant to section fourteen or fourteen A.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71h
Chapter 151A, Section 71I.Employees of generation facilities, electric companies and gas companies; reemployment assistance benefits.
Section 71I. (a) An employee of a generation facility, an electric company or a gas company, each as defined in section 1 of chapter 164, who is terminated after July 1, 1997 through no fault of his own as a result of the restructuring of the electricity and gas industries in the commonwealth and who is otherwise eligible for unemployment benefits, shall receive reemployment assistance benefits, pursuant to section 71F, and health insurance benefits, pursuant to section 71G. The total amount of reemployment assistance benefits payable to any such eligible employee with respect to the employee's benefit year shall be 13 weeks and shall not otherwise be adjusted by the provisions of subsection (c) of said section 71F for the number of weeks of advance notification given to any such employee by the employer or the number of weeks of separation pay, or the equivalent thereof, received by the employee from the employer. No such employee shall be denied or be determined to be ineligible for any such benefits if the employer has provided notice of the cessation of employment. Such benefits shall be in addition to any benefits an employee may receive pursuant to the provisions of an agreement resulting from collective bargaining by the owners of an electric company or generation facility, who owned such facilities as of July 1, 1997, or a gas company and an organization representing such employee in the negotiations of any such agreement.
(b) Any employer at a generation facility, an electric company, or a gas company where such eligible employee had been terminated shall be billed an amount equal to 100 per cent of the amount of reemployment assistance benefits paid under said section 71F and an amount equal to 100 per cent of the amount of health insurance benefits paid under said section 71G, and shall otherwise be subject to section 71H.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter151a/Section71i
Chapter 149, Section 179B. Commencement or Change of Location of Business; Notice to Commissioner.
Section 179B. The owner of every factory, workshop, manufacturing, mechanical, mercantile or other establishment or industry in which twelve or more persons are employed shall, upon the commencement, or a change of location, of its operations within the commonwealth, give notice thereof to the commissioner in such form as the commissioner shall prescribe. Whoever knowingly violates this section shall be punished by a fine of not more than one hundred dollars, or by imprisonment for not more than two months, or both.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section179b
Chapter 149, Section 179C. Collective bargaining agreements; successor clauses.
Section 179C. Where a collective bargaining agreement between an employer and a labor organization as defined in subsection (5) of section two of chapter one hundred and fifty A, contains a successor clause, such clause shall be binding upon and enforceable against any successor employer who succeeds to the contracting employer's business until the expiration date of the agreement stated in the agreement. No such successor clause shall be binding upon or enforceable against any successor employer for more than three years from the effective date of the collective bargaining agreement between the contracting employer and the labor organization.
As used in this section, "successor employer" means any purchaser, assignee or transferee of a business the employees of which are subject to a collective bargaining agreement, if such purchaser, assignee, or transferee conducts or will conduct substantially the same business operation, or offer the same service and use the same physical facilities, as the contracting employer.
This section shall not apply to a receiver or trustee in bankruptcy of any contracting employer who has gone into receivership or bankruptcy, nor to any employer who acquires a business from a receiver or trustee in bankruptcy nor to any employer which is a public entity, nor to any employer who is subject to the National Labor Relations Act or the Railway Labor Act.
An employer who is a party to a collective bargaining agreement containing a successor clause has the affirmative duty to disclose the existence of such agreement and such clause to any successor employer. Such disclosure requirements shall be satisfied by including in any contract of sale, agreement to purchase, or any similar instrument of conveyance, a statement that the successor employer is bound by such clause as provided for in the collective bargaining agreement.
The provisions of this section may be enforced in a civil action in the superior court division of the trial court or by a criminal action subject to the provisions of section one hundred and eighty or by both such civil and criminal actions.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section179c
Chapter 149, Section 182. Standards of corporate behavior; companies financed with assistance of quasi-public agencies.
Section 182. Any person utilizing financing issued, insured, or subsidized by a quasi-public agency of the commonwealth shall agree to accept the following voluntary standards of corporate behavior, without limiting the independent powers and findings required to be made by any such quasi-public agency:
In the event of a plant closing or partial closing as defined in section seventy-one A of chapter one hundred and fifty-one A, the company agrees to make a good-faith effort to provide every employee affected with the maximum practicable combination of the following: the longest practicable advance notice in cases where notice is possible and appropriate; and maintenance of income and health insurance benefits.
The company shall also, if possible, help to reemploy affected employees.
While no minimum standard is prescribed for these company responses, the commonwealth expects firms to provide at least ninety days notice or equivalent benefits whenever possible.
The precise form of said agreement shall be determined by the respective quasi-public agency.
For the purposes of this section, "quasi-public agency" shall mean, the Massachusetts Industrial Finance Agency, established by section three of chapter four hundred and ninety-six of the acts of nineteen hundred and seventy-eight, the Community Development Finance Corporation, established by section two of chapter eight hundred and sixty-six of the acts of nineteen hundred and seventy-five, the Massachusetts Technology Development Corporation, established by section one of chapter four hundred and ninety-seven of the acts of nineteen hundred and seventy-eight, the Government Land Bank, established by chapter two hundred and twelve of the acts of nineteen hundred and seventy-five, and the Massachusetts Product Development Corporation, established by chapter forty K.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section182
Chapter 149, Section 183. Severance pay upon termination following transfer of control of employer; definitions.
Section 183. (a) As used in this section, the following words, unless the context clearly requires otherwise, shall have the following meanings:--
"Control", the beneficial ownership of fifty percent or more of the outstanding voting securities of a control transferor; provided, however, that for the purposes of making percentage calculations outstanding voting securities shall include any voting stock underlying convertible securities.
"Control transferee", the person or persons who assume control following a transfer of control as defined herein.
"Control transferor", the person or persons who exercise control, including the power to hire and fire, before a transfer of control as defined herein; provided, however, that such person or persons are either:
(i) a corporation to which the provisions of paragraph (a) of section three of chapter one hundred and fifty-six B apply, a gas or electric company or combined gas and electric company to which section three of chapter one hundred and sixty-four applies or an association or trust which pursuant to said section three of said chapter one hundred and sixty-four owns beneficially a majority of the common stock of such a company or a trust company to which the provisions of chapter one hundred and seventy-two apply, a savings bank to which certain provisions of said chapter one hundred and seventy-two apply pursuant to section thirty-four C of chapter one hundred and sixty-eight, a cooperative bank in stock form to which certain provisions of chapter one hundred and seventy-two apply pursuant to section twenty-six C of chapter one hundred and seventy, or a national bank, federally chartered savings and loan association in stock form, or a federal savings bank in stock form; provided, however, that such corporation, trust company, savings bank, cooperative bank, national bank, federally chartered savings and loan association in stock form or a federal savings bank in stock form employs fifty or more full-time employees, or employees working aggregate hours equal to the sum of hours worked by fifty full-time employees, in the commonwealth at some point in the twelve calendar months prior to the transfer of control; and, provided further, that the term "control transferor" as defined in this clause (i) shall also be deemed to include any such trust company, savings bank, cooperative bank, national bank, federally chartered savings and loan association in stock form, or a federal savings bank in stock form if, immediately prior to the transfer of control, the control of such trust company, savings bank, cooperative bank, national bank, federally chartered savings and loan association in stock form, or a federal savings bank in stock form is held by such control transferor.
(i) a corporation to which the provisions of paragraph (1) of section 17.01 of chapter 156D apply, a gas or electric company or combined gas and electric company to which section 3 of chapter 164 applies or an association or trust which pursuant to said section 3 of said chapter 164 owns beneficially a majority of the common stock of such a company or a trust company to which the provisions of chapter 172 apply, a savings bank to which certain provisions of said chapter 172 apply pursuant to section 34C of chapter 168, a cooperative bank in stock form to which certain provisions of chapter 172 apply pursuant to section 26C of chapter 170, or a national bank, federally chartered savings and loan association in stock form, or a federal savings bank in stock form; provided, however, that such corporation, trust company, savings bank, cooperative bank, national bank, federally chartered savings and loan association in stock form or a federal savings bank in stock form employs 50 or more full-time employees, or employees working aggregate hours equal to the sum of hours worked by 50 full-time employees, in the commonwealth at some point in the 12 calendar months before the transfer of control; and, provided further, that the term "control transferor" as defined in this clause (i) shall also be deemed to include any such trust company, savings bank, cooperative bank, national bank, federally chartered savings and loan association in stock form, or a federal savings bank in stock form if, immediately before the transfer of control, the control of such trust company, savings bank, cooperative bank, national bank, federally chartered savings and loan association in stock form, or a federal savings bank in stock form is held by such control transferor.
(ii) a foreign corporation established, organized or chartered under laws other than those of the commonwealth; provided, however, that such corporation employs fifty or more full-time employees, or employees working aggregate hours equal to the sum of hours worked by fifty full-time employees, in the commonwealth at some point in the twelve calendar months prior to the transfer of control; and provided, further, that such corporation is not admitted to do business pursuant to section one hundred and fifty of chapter one hundred and seventy-five.
"Employee", any person employed for hire by an employer in any lawful employment.
"Termination of employment", the involuntary termination of an employee's employment consistent with the eligibility standards for unemployment benefits under section twenty-five of chapter one hundred and fifty-one A.
"Transfer of control", a transaction or series of transactions as a result of which any person, as such term is used in sections 13(d) and 14(d) of the Securities Exchange Act of 1934 hereinafter referred to as the "act", is or becomes the "beneficial owner", as defined in Rule 13d-3 under the act, directly or indirectly, of securities of a control transferor representing fifty percent or more of the control transferor's then outstanding voting securities; provided, however, that a change in control will not be deemed to have occurred solely because of the acquisition of securities of a control transferor, or any reporting requirement under the act relating thereto, by an employee benefit plan maintained by the control transferor for its employees.
"Weekly compensation", an employee's base compensation in effect on the last payroll period ending prior to the transfer of control for employees eligible pursuant to subsection (b) or the time of termination of employment for employees eligible pursuant to subsection (c).
"Year of service", each full year during which the employee has been employed by the control transferor as defined herein.
(b) Any employee of a control transferor whose employment is terminated within twenty-four calendar months after the transfer of control of his employer is entitled to a one time lump sum payment from the control transferee equal to the product of twice his weekly compensation multiplied by each completed year of service. Such severance pay to eligible employees shall be in addition to any final wage payment to the employee and shall be made within one regular pay period after the employee's last day of work.
(c) Any employee of a control transferor whose employment is terminated within the shorter of the following periods prior to a control transfer: (1) twelve calendar months; or (2) the period of time between which the control transferee obtained a five percent interest in the voting securities of the control transferor and consummated a control transfer by obtaining a fifty percent or greater interest pursuant to a transfer of control as defined herein, is entitled to a one time lump sum payment from the control transferee equal to the product of twice his weekly compensation multiplied by each completed year of service. Such severance pay to eligible employees shall be in addition to any final wage payment to the employee and shall be made within four regular pay periods after such transfer of control.
(d) There shall be no liability for the one time payment to an otherwise eligible employee if:
(1) The employee is covered by an express contract providing for such payment in the event of termination of employment in excess of that provided by this section;
(2) The employee has been employed by the control transferor for less than three years;
(3) A transfer of control as defined herein is the result of the transfer of securities or the beneficial interest therein, directly or indirectly, by sale, gift, bequest or otherwise, in one transaction or a series of transactions, between:
(i) an individual and that individual's spouse;
(ii) an individual and that individual's sibling or the sibling's spouse;
(iii) an individual and that individual's lineal descendants or their spouses;
(iv) an individual or a fiduciary who holds the securities or the beneficial interest therein for the benefit of any of the foregoing persons; or
(4) The control transferee obtained control through enforcement of rights under pledge or other security interest created in good faith and not for the purpose of circumventing the purposes of this chapter or as a result of an assignment for the benefit of creditors, receivership, bankruptcy, enforcement by judicial process or other similar proceeding, including a transferee obtaining its interest from the person enforcing such rights or in connection with such proceeding.
(e) Upon assuming control, the control transferee shall be responsible for providing written notice to each employee of the control transferor and the collective bargaining representative, if any, of the rights of employees under this section within thirty days of completion of a transfer of control. The control transferee shall also provide written notice to the department that a control transfer has occurred. The attorney general shall assess a fine in an amount up to one thousand dollars for failure to provide such notification.
(f) In the event any eligible employee is denied a lump-sum payment as a result of a violation of this section, such employee shall have available in addition to private civil and other remedies available at law or equity, the remedies provided under sections one hundred and forty-eight to one hundred and fifty, inclusive, of chapter one hundred and forty-nine. The attorney general may take any and all appropriate actions to enforce the provisions of this section under the authority provided in said sections one hundred and forty-eight to one hundred and fifty, inclusive, of said chapter one hundred and forty-nine.
(g) For the purposes of determining eligibility under subsections (b) and (c), all determinations shall be as of the date the control transfer occurs unless specifically stated otherwise.
(h) The attorney general may promulgate such rules and regulations as may be required for the implementation of this section.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section183
Chapter 149, Section 184. Severance pay following transfer of control or attempted transfer of control of registered corporations; definitions.
Section 184. (a) As used in this section, the following words, unless the context clearly requires otherwise, shall have the following meanings:--
"Control", the beneficial ownership of fifty percent or more of the outstanding voting securities of a control transferor; provided, however, that for the purposes of making percentage calculations outstanding voting securities shall include any voting stock underlying convertible securities.
"Control transferee", the person or persons who assume control following a transfer of control as defined herein.
"Control transferor", the person or persons who exercise control, including the power to hire and fire, before a contested meeting date; provided, however, that such person or persons are a registered corporation subject to the provisions of paragraph (a) of section 50A of chapter one hundred and fifty-six B and are subject to a contested meeting.
"Contested meeting date", the date any contested meeting takes place.
"Contested meeting", a contested meeting for the election of directors of a registered corporation, the purpose of which contest is to facilitate an acquisition of 50% or more of the outstanding voting securities of the registered corporation.
"Employee", any person employed for hire by an employer in any lawful employment.
"Registered corporation", any corporation subject to the provisions of paragraph (a) of section fifty A of chapter one hundred and fifty-six B which has a class of voting stock registered under the Securities Exchange Act of 1934, as amended (hereinafter referred to as the "act"); provided, however, that if a corporation is subject to paragraph (a) of such section at the time it ceases to have any class of voting stock so registered, such corporation shall nonetheless be deemed to be a registered corporation for a period of twelve months following the date it ceased to have such stock so registered.
"Termination of employment", the involuntary termination of an employee's employment consistent with the eligibility standards for unemployment benefits under section twenty-five of chapter one hundred and fifty-one A.
"Transfer of control", a transaction or series of transactions as a result of which any person, as such term is used in sections 13(d) and 14(d) of the act, is or becomes the "beneficial owner", as defined in Rule 13d-3 under the act, directly or indirectly, of securities of a control transferor representing fifty percent or more of the control transferor's then outstanding voting securities; provided, however, that a change in control will not be deemed to have occurred solely because of the acquisition of securities of a control transferor, or any reporting requirement under the act relating thereto, by an employee benefit plan maintained by the control transferor for its employees.
"Weekly compensation", an employee's base compensation in effect on the last payroll period ending prior to the contested meeting.
"Year of service", each full year during which the employee has been employed by the control transferor as defined herein.
(a) As used in this section, the following words, unless the context clearly requires otherwise, shall have the following meanings:
"Control transferor", the person or persons who exercise control, including the power to hire and fire, before a contested meeting date; provided, however, that such person or persons are a registered corporation subject to subsection (b) of section 8.06 of chapter 156D and are subject to a contested meeting.
"Registered corporation", any corporation subject to subsection (b) of section 8.06 of chapter 156D which has a class of voting stock registered under the Securities Exchange Act of 1934, as amended, hereinafter referred to as the "act"; provided, however, that if a corporation is subject to subsection (a) of such section 8.06 at the time it ceases to have any class of voting stock so registered, such corporation shall nonetheless be deemed to be a registered corporation for a period of 12 months following the date it ceased to have such stock so registered.
(b) Any employee of a control transferor whose employment is terminated within the shorter of either: (i) a period of twelve calendar months following a contested meeting date of such control transferor or (ii) the period between a contested meeting date of such control transferor and a transfer of control of such control transferor is entitled to a one time lump-sum payment from the control transferor equal to the product of twice his weekly compensation multiplied by each completed year of service. Such severance pay to eligible employees shall be in addition to any final wage payment to the employee and shall be made within one regular pay period after the employee's last day of work.
(c) There shall be no liability for the one time payment to an otherwise eligible employee if:
(1) The employee is covered by an express contract providing for such payment in the event of termination of employment in excess of that provided by this section;
(2) The employee has been employed by the control transferor for less than three years;
(3) A transfer of control as defined herein is the result of the transfer of securities or the beneficial interest therein, directly or indirectly, by sale, gift, bequest or otherwise, in one transaction or a series of transactions, between:
(i) an individual and that individual's spouse;
(ii) an individual and that individual's sibling or the sibling's spouse;
(iii) an individual and that individual's lineal descendants or their spouses; or
(iv) an individual or a fiduciary who holds the securities or the beneficial interest therein for the benefit of any of the foregoing persons.
(4) The control transferee obtained control through the enforcement of rights under pledge or other security interest created in good faith and not for the purpose of circumventing the purposes of this section or as a result of an assignment for the benefit of creditors, receivership, bankruptcy, enforcement by judicial process or other similar proceeding, including a transferee obtaining its interest from the person enforcing such rights or in connection with such proceeding.
(d) Any amounts paid to an employee pursuant to subsection (b) of this section shall be credited against any amounts payable by a control transferee to such employee pursuant to section one hundred and eighty-three of this chapter. The control transferor is responsible for maintaining such records as may be required for adequate implementation of this provision.
(e) The control transferor shall be responsible for providing written notice to each employee of the control transferor and the collective bargaining representative, if any, of the rights of employees under this section within ten business days of the occurrence of a contested meeting. Such control transferor shall also provide written notice to the department that a contested meeting has occurred. The attorney general shall assess a fine in an amount up to one thousand dollars for failure to provide such notification.
(f) In the event any eligible employee is denied a lump-sum payment in violation of this section, such employee shall have available, in addition to private civil and other remedies available at law or equity, the remedies provided under sections one hundred and forty-eight to one hundred and fifty inclusive, of this chapter. The attorney general may take any and all appropriate actions to enforce the provisions of this section under the authority provided in said sections one hundred and forty-eight to one hundred and fifty inclusive, of this chapter.
(g) For purposes of determining eligibility under subsection (b), all determinations shall be as of the contested meeting date, unless specifically stated otherwise in this section.
(h) The attorney general may promulgate such rules and regulations as may be required for the implementation of this section.
https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXI/Chapter149/Section184
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Regulations
Worker Adjustment and Retraining Notification Act (WARN):
29 USC §2101 et seq.; 20 CFR 639