SB 1068

This bill requires a business entity that operates a full-service pharmacy or major grocery store to provide notification of a permanent closing of the pharmacy or grocery store in most instances, irrespective of the number of employees the business entity employs in this state or the number of employees who are affected by the closing.

Under current law, subject to certain exceptions and limitations, if an employer that employs 50 or more persons in this state decides to permanently or temporarily close an employment site, operating unit, or facility within a municipality and the closure will 1) affect 25 or more employees; 2) reduce the employer’s workforce and affect at least 25 percent of the employer’s workforce or 25 employees, whichever is greater; or 3) reduce the employer’s workforce and affect at least 500 employees, the employer must provide notification of the closing or mass layoff no later than 60 days before the closing or layoff to certain employees, individuals, and entities. The employer must provide notice to at least all of the following: 1) an employee who may reasonably be expected to lose their job because of the closing or layoff and who is not considered a new or low-hour employee (affected employee); 2) any representative of a collective bargaining unit that represents an affected employee; and 3) the highest official in the municipality in which the affected business is located. The Department of Workforce Development must provide a copy of the notice to the Office of the Commissioner of Insurance and cooperate with that agency to provide certain types of assistance to the employer and affected employees and information regarding health insurance options available to affected employees.

Under the bill, “full-service pharmacy” is defined as a retail pharmacy licensed in Wisconsin that dispenses prescription medications to the public and employs a licensed pharmacist on-site, and “major grocery store” is defined as an establishment that is licensed by the Department of Agriculture, Trade and Consumer Protection or a local health department as a retail food establishment, occupies at least 15,000 square feet, and sells a broad line of fresh produce, meats, dairy products, and staple foods.

The bill provides that an employer that operates a full-service pharmacy or major grocery store in this state must always provide notice of a permanent business closing of the pharmacy or grocery store, irrespective of the number of employees the employer employs in this state or the the number of employees that will be affected. In addition to the individuals and entities that must be notified as described above, the bill also requires notification to be provided to every employee that may be affected by a permanent closing of a full-service pharmacy or major grocery store and to the chairperson of the county in which the pharmacy or grocery store that is being closed is located. The only exception under the bill to the notification requirement is for an employer that is moving the full-service pharmacy or major grocery store to a new location within two miles of the site that is being permanently closed and offering employment at the new location to all employees of the location that is being closed.

Also under current law, an employee affected by a business closing or mass layoff may recover pay and the value of any benefits that the employee would have received for the period beginning on the day on which the employer was required to give notice and ending on the day on which the employer actually gave notice or the day on which the business closing or mass layoff occurred, whichever occurs first (recovery period). The bill provides that an affected employee may recover pay at the employee’s regular rate of pay at the time of the business closing and benefits for the recovery period, but not to exceed a period of 60 days.

Current law also allows DWD to assess a business closing surcharge of not more than $500 per day for each day of the recovery period on an employer that fails to give timely notice to the highest official of the affected municipality. The bill requires DWD to impose a penalty of at least $1,000 but not more than $5,000 per day for each day of the recovery period on which an employer that fails to give timely notice to the highest official of the affected municipality and the chairperson of the county board of the county in which the full-service pharmacy or major grocery store that is being closed is located. The bill also allows the Division of Alcohol Beverages to initiate a proceeding to suspend or revoke any alcohol beverage license issued to the employer. The bill allows DWD to request the Department of Revenue to suspend or revoke a business tax registration certificate or a seller’s permit.