A faltering Illinois company faces regulatory scrutiny after abruptly laying off 253 workers at its Alton facility. The Illinois Department of Labor has opened an investigation into whether Alton Steel violated the state’s WARN Act by failing to provide 60 days’ notice before closures. The company cited “unforeseeable business circumstances” in a letter to officials, claiming a supplier seized critical raw materials, leaving it unable to secure alternatives.

Officials are reviewing whether the layoffs were justified under WARN exceptions, which could result in penalties of up to $500 per day of missed notice and back pay for affected employees. The investigation remains ongoing, with no resolution timeline set.