Oregon Construction Contractors (CCB) Practice Test

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What is one outcome if an employer fails to comply with the WARN Act?

Increased tax rates
Financial penalties
Loss of business license
Letters of reprimand

The correct answer is: Financial penalties

If an employer fails to comply with the Workers Adjustment and Retraining Notification (WARN) Act, one potential outcome is the imposition of financial penalties. The WARN Act requires employers to provide advance notice to employees and certain government entities in the event of significant layoffs or plant closings. When an employer does not adhere to these requirements, the law allows affected employees to seek compensation for back pay and benefits for the period of violation, which can result in substantial financial repercussions for the employer. While other consequences, such as increased scrutiny or legal challenges from employees, might arise, the primary and direct outcome related to non-compliance under the WARN Act pertains to financial liabilities. The law is structured to protect workers by ensuring that they are informed and can plan for transitions, so failing to provide the legally mandated notification can lead to these financial penalties as a means of upholding worker rights and accountability.