### Question
What does substantial cessation of operations mean?


### Answer
**Substantial cessation of operations** has the following meaning in *29 U.S.C. § 1362*:

> 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

#### Citation:
  - *29 U.S.C. § 1362*
  - Heading: **CHAPTER 18-EMPLOYEE RETIREMENT INCOME SECURITY PROGRAM > SUBCHAPTER III-PLAN TERMINATION INSURANCE > Subtitle D-Liability**

