substantial cessation of operations
(2) Substantial cessation of operations For purposes of this subsection: (A) In general The term “substantial cessation of operations” means a permanent cessation of operations at a facility which results in a workforce reduction of a number of eligible employees at the facility equivalent to more than 15 percent of the number of all eligible employees of the employer, determined immediately before the earlier of— (i) the date of the employer’s decision to implement such cessation, or (ii) in the case of a workforce reduction which includes 1 or more eligible employees described in paragraph (6)(B), the earliest date on which any such eligible employee was separated from employment. (B) Workforce reduction Subject to subparagraphs (C) and (D), the term “workforce reduction” means the number of eligible employees at a facility who are separated from employment by reason of the permanent cessation of operations of the employer at the facility. (C) Relocation of workforce An eligible employee separated from employment at a facility shall not be taken into account in computing a workforce reduction if, within a reasonable period of time, the employee is replaced by the employer, at the same or another facility located in the United States, by an employee who is a citizen or resident of the United States. (D) Dispositions If, whether by reason of a sale or other disposition of the assets or stock of a contributing sponsor (or any member of the same controlled group as such a sponsor) of the plan relating to operations at a facility or otherwise, an employer (the “transferee employer”) other than the employer which experiences the substantial cessation of operations (the “transferor employer”) conducts any portion of such operations, then— (i) an eligible employee separated from employment with the transferor employer at the facility shall not be taken into account in computing a workforce reduction if— (I) within a reasonable period of time, the employee is replaced by the transferee employer by an employee who is a citizen or resident of the United States; and (II) in the case of an eligible employee who is a participant in a single employer plan maintained by the transferor employer, the transferee employer, within a reasonable period of time, maintains a single employer plan which includes the assets and liabilities attributable to the accrued benefit of the eligible employee at the time of separation from employment with the transferor employer; and (ii) an eligible employee who continues to be employed at the facility by the transferee employer shall not be taken into account in computing a workforce reduction if— (I) the eligible employee is not a participant in a single employer plan maintained by the transferor employer, or (II) in any other case, the transferee employer, within a reasonable period of time, maintains a single employer plan which includes the assets and liabilities attributable to the accrued benefit of the eligible employee at the time of separation from employment with the transferor employer.