Sec. 1. 26 MRSA §625-B, sub-§1, ¶G, as enacted by PL 1979, c. 663, §157, is amended to read:

G. "Termination" means the substantial cessation of industrial or commercial operations in a covered establishment. A termination occurs whenever any one of the following reductions occur:

(1)__The number of employees employed is equal to or less than 50% of the number of employees employed in the pay period that occurred 52 weeks prior;

(2)__The number of hours worked by employees is equal to or less than 50% of the number of hours worked by employees in the period that occurred 52 weeks prior.__ For purposes of this section, salaried employees are deemed to work a 40-hour week; or

(3)__The amount of units or volume produced or gross receipts billed is equal to or less than 50% of the equivalent standard in the period that occurred 52 weeks prior.

Sec. 2. 26 MRSA §625-B, sub-§1, ¶I is enacted to read:

I.__"Eligible employee" means any employee employed in a covered establishment who leaves employment involuntarily due to a lack of work within a 12-month period prior to or dating from a termination as defined in paragraph G.

Sec. 3. 26 MRSA §625-B, sub-§3, ¶¶C and D, as enacted by PL 1979, c. 663, §157, are amended to read:

C. That employee accepts employment at the new location; or

D. That employee has been employed by the employer for less than 3 years. ; or

Sec. 4. 26 MRSA §625-B, sub-§3, ¶E is enacted to read:

E.__That employee was terminated more than 12 months prior to a termination.

SUMMARY

This bill amends the law governing severance pay so that, upon determination by the Department of Labor that a substantial cessation of operations in a covered establishment has occurred,