Additional Case 6.3 MedEquip, a Medical Services Company with 500 Employees, Has Experienced

Multiple Choice

Additional Case 6.3
MedEquip, a medical services company with 500 employees, has experienced an extensive business downturn, and a layoff is necessary. MedEquip managers expect a layoff to be problematic because the firm made verbal commitments to workers for lifetime employment. You are an HR consultant brought in to assist with the layoff. The firm has also hired a PR specialist to handle the press releases and public communications about the layoff. Although MedEquip is a large company, the firm has built a family atmosphere. Corporate headquarters is located in a small community of about 10,000 people.
The firm is planning to implement a layoff of 20% of its hourly and managerial employees. Because of time demands and financial pressures, the layoff will occur in 30 days. The firm plans to use work performance as the layoff criterion. Three areas of the business will be affected: MIS, facilities, and accounting. Management is concerned about security in these areas.
Olivia, a middle manager who will not be laid off, has decided to hold group meetings with the units affected by the layoff. Employees will not receive information in writing regarding the layoff to avoid litigation issues. Instead, affected employees will receive verbal communications from Olivia about the layoff. Employees at the firm who are not losing their jobs will receive e-mails that summarize the current situation at MedEquip.
-Refer to Additional Case 6.3.Given the situation at MedEquip,which of the following statements is most likely true?

A) MedEquip must offer laid-off employees 60 days of income to avoid WARN Act violations.
B) MedEquip is in violation of the WARN Act and must extend the layoff deadline by 30 days.
C) MedEquip is not subject to the WARN Act because the business is not bankrupt.
D) MedEquip is not subject to the WARN because the business is too small.