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Bill Summary · HB 2285

Bill Overview

  • Bill: HB 2285
  • Session: 2026
  • Jurisdiction: Missouri
  • Title: Provides for mandatory severance for employees terminated in certain layoffs
  • Sponsor: Representative Clemens (co-sponsor: Doug Clemens)
  • Purpose: Establish mandatory severance and enhanced notice requirements for certain mass layoffs or transfers of operations at establishments.

Main Purpose and Intent

The bill aims to protect workers during mass layoffs or certain transfers/terminations of operations by:
- Requiring advance notice to affected employees and relevant officials.
- Providing severance pay to employees who are terminated under qualifying conditions.
- Limiting waivers of severance rights without approval from the state director or a court.

Key Provisions and Changes

  1. Definitions (Section 290.116)

    • Establishes terms used in the bill, including:
      • Director: Director of the Missouri Department of Labor and Industrial Relations or their representative.
      • Employee: As defined in Missouri law (section 290.500).
      • Employer: Includes individuals or entities that employ workers and, broadly, those who control decisions leading to a mass layoff; also includes nominal employers, corporate subsidiaries, or other parties with decision-making authority over the layoff.
      • Establishment: A workplace operated for more than three years (excluding temporary construction sites); may be a single location or group of locations, including Missouri buildings.
      • Mass layoff: Reduction in workforce not due to transfer/operations termination, resulting in the termination of at least 50 employees in a 30-day period at an establishment.
      • Operating unit: A distinct product, operation, or work function within or across facilities.
      • Termination of employment: Layoff with no commitment to reinstate within six months, with several exceptions (e.g., voluntary departure, misconduct, seasonal layoffs, or offers of equivalent employment within 50 miles and within Missouri).
      • Termination of operations: Shutdown of a single establishment or parts of it (with listed exceptions for disasters, emergencies, licenses, etc.).
      • Transfer of operations: Permanent or temporary transfer of a single establishment or units to another location.

  2. Notice and Severance Requirements (Section 2)

    • When an establishment undergoes a transfer of operations or termination of operations resulting in 50+ terminations within any 30-day period, or during a mass layoff:
      • Notice: For employers with 100+ employees, at least 90 days’ notice (or the longer period required by the federal Worker Adjustment and Retraining Notification Act, 29 U.S.C. 2101 et seq.). Notice must go to the director, the chief elected official of the municipality where the establishment is located, each affected employee, and any relevant collective bargaining units.
      • Severance Pay: Each terminated employee must receive severance pay equal to one week of pay for each full year of employment.
      • If notice provided is shorter than the required period, the employee gets an additional four weeks of pay.
      • Severance pay rate is the higher of:
        • The employee’s average regular rate of pay over the last three years of employment, or
        • The employee’s final regular rate of pay.
      • Severance is considered back pay and earned in full upon termination, regardless of how pay is calculated.
      • The employee must receive the greater of the above severance or any severance already provided via a collective bargaining agreement or other arrangement.
      • Credit for Back Pay: Any back pay already provided under the federal WARN Act can be credited toward meeting these severance requirements.

  3. Waivers (Section 3)

    • No waiver of the right to severance can be effective without approval from the director or a court.

  4. Rulemaking (Section 4)

    • The Department of Labor and Industrial Relations may promulgate rules to administer the section.
    • Rules must comply with Chapter 536, and if applicable, 536.028.
    • The provision includes a severability clause: if any part of the rulemaking authority or rules is held unconstitutional, the remaining provisions and rulemaking authority are affected accordingly.

  5. Effective Date and Nonseverability

    • The bill links rulemaking to standards in Chapter 536 and notes nonseverability of the section and related rulemaking provisions.

Who Is Affected

  • Employers operating establishments in Missouri that undergo a transfer of operations, termination of operations, or a mass layoff (as defined) resulting in 50+ terminations within 30 days.
  • Employees who are terminated under these circumstances are eligible for severance pay as specified.
  • The Director of the Department of Labor and Industrial Relations, municipalities where establishments are located, and relevant collective bargaining units (as applicable) receive notice obligations.

Procedural and Timeline Considerations

  • Trigger events: Transfer of operations, termination of operations, or mass layoff with 50+ terminations within a 30-day window.
  • Notice timeline: For qualifying employers (100+ employees), at least 90 days’ notice before first termination, or the longer federal WARN Act period, whichever is longer.
  • Severance timeline: Severance is due to terminated employees at the time of termination under the terms described; back pay credits from WARN Act can count toward severance obligations.
  • Waiver approvals: Any waiver of severance rights requires approval by the director or a court.
  • Rulemaking: The department can issue rules to implement the statute, subject to state rulemaking standards; the bill specifies that certain rules must be in line with Chapter 536 and remains nonseverable in its enforcement framework.

Summary

HB 2285 would create mandatory severance and enhanced notice requirements for mass layoffs or transfers of operations at Missouri establishments. It defines the scope of employers and establishments covered, outlines when a “mass layoff” or “termination of operations” occurs, and requires substantial advance notice (minimum 90 days for larger employers) and severance pay (one week per year of service, with an added four weeks if notice is insufficient). Severance must be calculated using the employee’s higher of the last three years’ average pay or final pay, and can be superseded by existing severance protections in bargaining agreements. Waivers of severance rights require director or court approval, and the Department would administer rules to implement the law. The bill builds on and is similar to prior proposals (HB 403 of 2025).

Compiled from official sources — confirm details with the bill’s official record.

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