N.Y. Comp. Codes R. & Regs. tit. 12 § 921-6.2

Current through Register Vol. 46, No. 25, June 18, 2024

Section 921-6.2 - Faltering company

(a) This exception applies only to plant closings as defined under the Act. An employer qualifies for a reduced notice under this exception if at the time notice would have been required:

(1) The employer was actively seeking capital or business and identifies the specific actions taken to obtain such capital or business. For example, the employer must demonstrate its efforts to obtain financing or refinancing through the arrangement of loans, the issuance of stocks, bonds, or other methods, or to obtain additional money, credit, or business through any other commercially reasonable method; and

(2) There was a realistic opportunity to obtain the capital or business sought; and

(3) The capital or business sought would have been sufficient, if obtained, to enable the employer to avoid or postpone the plant closing; and

(4) The employer reasonably and in good faith believed that giving notice would have precluded the ability to obtain the needed capital or business. The employer must be able to objectively demonstrate that a potential customer or financing source would have been unwilling to provide the new business or capital if notice were given. This condition may be satisfied if the employer can show that the financing or business source would not choose to do business with a troubled company or with a company whose workforce would be looking for other jobs.

(b) For the purposes of this Part, the employer's actions will be viewed in a company-wide context. A company with access to capital markets or with cash reserves may not avail itself of this exception by looking solely at the financial condition of the single site of employment to be closed and doing so shall constitute a violation of the Act and this Part.

N.Y. Comp. Codes R. & Regs. Tit. 12 § 921-6.2

Amended New York State Register June 21, 2023/Volume XLV, Issue 25, eff. 6/21/2023