House Bill 5890 Summary

• Requires covered employers (20+ employees earning $2M+ annually) to pay severance of 1 week's pay per year of employment when closing, relocating 100+ miles, or conducting mass layoffs of 20+ employees.

• Severance pay must be distributed within 1 regular pay period after an employee's last full day of work and is in addition to final wage payments; employees are eligible if employed for at least 1 year and not discharged for cause.

• Employers must notify the Department of Labor and Economic Opportunity at least 90 days before closing or relocating and as far in advance as practicable before mass layoffs; employers must also notify affected employees and local municipalities 90 days before closure.

• Employers must display a department-created poster at work sites summarizing employee rights; violations of posting requirement incur fines up to $5,000 per violation.

• Employees or labor organizations may sue for unpaid severance plus 4 weeks' additional pay within 6 years; the department or attorney general may also pursue enforcement; bankruptcy does not exempt employers from severance obligations.