To provide notice to employees when there are reductions in business operations and for other purposes.

SECTION 1. EMPLOYER REDUCTIONS.

    (a) In General.--An employer planning a reduction in operations at 
a workplace shall provide written notice to all of the following:
            (1) All employees of the employer who are employed at the 
        affected workplace.
            (2) The labor organization which represents those employees 
        for collective bargaining, if such an organization exists.
            (3) The elected officials of the community in which the 
        affected workplace is located.
            (4) The Secretary of Labor.
    (b) Giving of Notice.--The notice required by subsection (a) shall 
be given not less than 3 months before the actual reduction in 
operations is effected, unless the provisions of any bona fide 
collective bargaining agreement covering the affected workplace 
requires a longer advance notification period, in which case the 
provisions of the collective bargaining agreement shall take 
precedence.
    (c) Notice Content.--The notice required by subsection (a) shall 
contain the following:
            (1) The name, location, and nature of the workplace 
        affected by the planned reduction in operations.
            (2) The reasons for the reduction in operations.
            (3) An estimate of the duration of the reduction in 
        operations.
            (4) The number of employees to be affected by the planned 
        reduction in operations.
            (5) A description of rights and benefits relating to due 
        process, seniority, and severance pay that are guaranteed to 
        employees under collective bargaining agreements or the 
        personnel policies of the employer in the event of a reduction 
        in operations.
    (d) Application.--The notice required by subsection (a) shall not 
apply--
            (1) if any unforeseen event causes a reduction in 
        operations;
            (2) to reductions in operations resulting solely from labor 
        disputes;
            (3) to reductions in operations that occur in any of the 
        commercial, industrial, or agricultural enterprises operated by 
        a State or any of its political subdivisions;
            (4) to reductions in operations that occur at construction 
        sites or other workplaces that were never intended as other 
        than a temporary or seasonal workplace;
            (5) to reductions in operations resulting from seasonal 
        factors that are determined by the Secretary of Labor to be 
        customary in the industry of which the employer is a part; and
            (6) to reductions in operations resulting from any employer 
        who has filed for bankruptcy in accordance with Federal 
        bankruptcy laws.

SEC. 2. ACTION BY THE SECRETARY OF LABOR.

    When a reduction in operations will result from a complete 
workplace closure or relocation, not later than 130 days after receipt 
of the notice of a reduction in operations under section 1, the 
Secretary of Labor, with the assistance of State agencies as necessary 
or appropriate, shall do the following:
            (1) Coordinate all State government services for the 
        alleviation of the economic distress suffered by displaced 
        workers.
            (2) When the reduction in operations will result from a 
        workplace closure or relocation, complete an initial study of 
        the feasibility of establishing a community-owned, employee-
        owned, or jointly owned business to continue operations at the 
        workplace.

SEC. 3. ACTION BY EMPLOYER.

    An employer planning to effect a reduction in operations at a 
workplace, after giving notice of the reduction in operations as 
required by section 1, shall do the following:
            (1) When the reduction in operations is a complete closure 
        or relocation of the workplace, make a good faith offer of sale 
        at fair market value of the workplace, equipment, and inventory 
        to the community in which the workplace is located, or to an 
        organization of the employees of the workplace which singly or 
        in combination attempts to form a community-owned, employee-
        owned, or jointly owned business at the workplace to be closed 
        or relocated. Any offer made under this paragraph shall not be 
withdrawn earlier than the 50th day after the community and employee 
organization officials have been notified in writing by the employer of 
the assistance available under section 5.
            (2) Sales under paragraph (1) shall be predicated on the 
        continued compliance with the provisions of any bona fide 
        collective bargaining agreement covering the workplace to be 
        closed or relocated. If the collective bargaining agreement at 
        the workplace to be closed has expired, or will expire during 
        the 1-year period after notification of the complete closure or 
        relocation, the prospective buyer shall agree, as a condition 
        for sale, to bargain in good faith with employee 
        representatives at the workplace to be closed.

SEC. 4. REDUCTION IN OPERATIONS IN EFFECT.

    When a reduction in operations takes effect, the employer shall 
provide a choice of the following benefits to each affected employee:
            (1)(A) Permanent preference rights in hiring and employment 
        at other workplaces of the employer and, when the employee 
        accepts employment at another workplace, vacation benefits, and 
        health, welfare, and pension benefits earned while previously 
        employed by the employer.
            (B) Severance pay benefits equal to one week's wages for 
        each completed year of service up to the date of termination, 
        computed on the basis of 40 straight time hours at the 
        employee's regular wage rate. A bonus of 1 week of pay shall be 
        paid for each 5 years of service up to the termination date in 
        addition to 1 week's pay per year of service up to the 
        termination date. In no case shall any affected employee 
        receive severance pay benefits for less than 3 weeks of wages 
        computed on the basis of 40 straight time hours at the 
        employee's regular wage rate.
            (2) When the employee accepts a transfer to a workplace of 
        the employer which is 40 miles or more from the employee's 
        residence, payment for the movement of normal household goods, 
        reimbursement for the reasonable one-way transportation costs 
        for the employee and the employee's dependents to the new 
        residence, and reimbursement for reasonable legal fees and 
        other fees and closing costs associated with purchase or rental 
        of a new residence up to a maximum of $500.
            (3) Employers shall give the affected employees 30 days to 
        choose between the severance pay benefits and preference rights 
        benefits. If, at the end of 30 days, an affected employee has 
        failed to choose 1 of the 2 options, the employer may assign 
        one of the options to that affected employee.
            (4) In all cases of a reduction in operation, the employer 
        shall maintain a continuation of the employer's share of 
        premiums and contributions for any employee health and 
        insurance benefit plans in effect at the start of the reduction 
        in operations for one year, or until the employee becomes 
        eligible for health and insurance benefits as a result of 
        reemployment, whichever is sooner.
            (5) The terms of a lawful collective bargaining agreement 
        shall prevail over any provision of this Act with which they 
        conflict.

SEC. 5. TECHNICAL ASSISTANCE.

    The Secretary of Labor shall provide the following technical 
assistance upon request of employees or communities adversely affected 
by reductions in operations:
            (1) Conducting informational meetings for employees, 
        employee organizations, and community organizations about the 
        advantages and disadvantages of community-owned businesses and 
        about the services and technical assistance available through 
        the Secretary of Labor.
            (2) Evaluation of the feasibility and economic viability of 
        a proposed community-owned business, based on the results of 
        the study described in section 2.
            (3) Technical assistance as needed to community groups.

SEC. 6. ENFORCEMENT.

    The Secretary of Labor shall enforce this Act. The Secretary may 
issue subpoenas, subpoenas duces tecum, administer oaths, obtain 
evidence, and take testimony in all matters relating to the 
requirements of this Act.

SEC. 7. PENALTIES.

    (a) Civil Penalty.--An employer that fails to provide notice of a 
planned reduction in operations as required under section 1 shall be 
liable to the United States for a civil penalty of not more than $1,000 
for each affected employee.
    (b) Civil Penalty Order.--When an order assessing a civil penalty 
becomes final by operation of law or on appeal, unless the amount of 
the penalty is paid within 10 days after the order becomes final, it 
constitutes a judgment and may be filed with the county clerk in any 
State. The clerk shall thereupon record the name of the person 
incurring the penalty and the amount of the penalty in the judgment 
docket. The penalty provided in the order so docketed shall become a 
lien upon the title to any interest in property owned by the person 
against whom the order is entered, and execution may be issued upon the 
order in the same manner as execution upon the judgment of a court of 
record.
    (c) Civil Actions Against Employers.--(1) Any employer that fails 
to provide notice of a planned reduction in operations as required 
under section 1 shall be liable to each aggrieved employee who suffers 
an employment loss as a result of such failure for--
            (A) back pay for each day of violation at a rate of 
        compensation not less than the higher of--
                    (i) the average regular rate received by such 
                employee during the last 3 years of the employee's 
                employment; or
                    (ii) the final regular rate received by such 
                employee; and
            (B) benefits under an employee benefit plan described in 
        section 3(3) of the Employee Retirement Income Security Act of 
        1974 (29 U.S.C. 1002(3)), including the cost of medical 
        expenses incurred during the employment loss which would have 
        been covered under an employee benefit plan if the employment 
        loss had not occurred.
Such liability shall be calculated for the period of the violation, up 
to a maximum of 60 days, but in no event for more than one-half the 
number of days the employee was employed by the employer.
    (2) The amount for which an employer is liable under paragraph (1) 
shall be reduced by--
            (A) any wages paid by the employer to the employee for the 
        period of the violation;
            (B) any voluntary and unconditional payment by the employer 
        to the employee that is not required by any legal obligation; 
        and
            (C) any payment by the employer to a third party or trustee 
        (such as premiums for health benefits or payments to a defined 
        contribution pension plan) on behalf of and attributable to the 
        employee for the period of the violation.
In addition, any liability incurred under paragraph (1) with respect to 
a defined benefit pension plan may be reduced by crediting the employee 
with service for all purposes under such a plan for the period of the 
violation.

SEC. 8. DEFINITIONS.

    As used in this Act:
            (1) The term ``affected employee'' means any employee who 
        has been an employee for at least 13 weeks during the preceding 
        52 weeks at a workplace and whose employment is terminated by a 
        reduction in operations at that workplace.
            (2) The term ``employer'' means any business enterprise 
        that employs 100 or more employees, excluding part-time 
        employees, or 100 or more employees who in the aggregate work 
        at least 4000 hours per week (exclusive of hours of overtime).
            (3) The term ``community'' means, for any particular 
        employer, the city in which the employer is located or, if not 
        located in a city, the county in which the employer is located.
            (4) The term ``community-owned business'' means a business 
        which is either of the following:
                    (A) At least 51 percent owned by a not-for-profit 
                corporation established primarily for the purpose of 
                advancing the economic development of the community, as 
                defined in paragraph (3), provided that the majority of 
                the members of the controlling board of directors of 
                the not-for-profit corporation shall be comprised of 
                elected representatives of the community.
                    (B) At least 51 percent owned by the city or county 
                in which the workplace of the employer is located and 
                which is controlled by the electorate of the city or 
                county through elected officials or an elected or 
                appointed board of directors.
            (5) The term ``reductions in operations'' means either the 
        transfer of any part of an employer's operation from one 
        workplace to another existing or proposed site, or the shutting 
        down of a workplace or any part of a workplace so as to reduce 
        the number of employees at the workplace being shut down or 
        relocated by at least 25 percent or 15 employees, whichever is 
        greater, over any 3-month period.
            (6) The term ``taxing districts'' means any city, county, 
        or special district permitted by law to tax employers with 
        workplaces located within its boundaries.
            (7) The term ``workplace'' means any factory, plant, 
        office, or other facility where an employer has hired employees 
        to produce goods or provide services.
            (8) The term ``employee-owned business'' means a employer 
        owned entirely by the employees of the employer and controlled 
        by those employees or by a board of directors selected by those 
        employees.
            (9) The term ``jointly-owned business'' means a employer 
        owned jointly by a city or county and the employees of the 
        employer and controlled by a board of directors selected by the 
        city, county, or employees.

Summary: Requires employers of 100 or more employees who are planning a reduction in operations at a workplace to give written notice meeting specified requirements to: (1) all their employees at the affected workplace, (2) the labor organization representing those employees for collective bargaining. (3) the elected officials of the community in which the affected workplace is located. And (4) the Secretary of Labor. Directs the Secretary, when a reduction in operations will result from a complete workplace closure or relocation, after receipt of such notice and with the assistance of State agencies, to: (1) coordinate all State government services for the alleviation of the economic distress suffered by displaced workers. And (2) study the feasibility of establishing a community-owned, employee-owned, or jointly owned business to continue operations at the workplace. Requires the employer in such circumstances, after giving such notice, and subject to certain requirements to make a good faith offer of sale at fair market value of the workplace, equipment, and inventory to the community in which the workplace is located, or to an organization of the workplace employees which singly or in combination attempts to form a community-owned, employee-owned, or jointly owned business at the workplace to be closed or relocated. Subjects such sales to continued compliance with any bona fide collective bargaining agreement covering the workplace concerned, or good faith bargaining with employee representatives if an agreement expires within a specified time period. Requires the employer, when a reduction in operations takes effect, to provide a choice of the following benefits to each affected employee: (1) permanent preference rights in hiring and employment at other workplaces of the employer and, when the employee accepts employment at another workplace, vacation, health, welfare, and pension benefits earned while previously employed by the employer. (2) severance pay benefits equal to one week's wages for each completed year of service up to the date of termination, with a bonus of one week of pay for each five years of service, and with a specified minimum benefit for all affected employees. Or (3) when the employee accepts a transfer to a workplace 40 miles or more from the employee's residence, payment for the movement of normal household goods, reimbursement for the reasonable one-way transportation costs, and reimbursement for reasonable legal fees and other fees and closing costs associated with purchase or rental of a new residence up to a maximum of $500. Requires employers, in all cases of a reduction in operation, to continue for a specified period of time the employer's share of premiums and contributions for any employee health and insurance benefit plans. Requires the terms of a lawful collective bargaining agreement to prevail over any provision of this Act with which they conflict. Directs the Secretary to provide specified technical assistance upon request of employees or communities adversely affected by reductions in operations. Provides for enforcement, civil penalties, and civil actions against employers who violate this Act.