Worker Adjustment and Retraining Notification (WARN) Act
Definition
A federal law requiring covered employers to provide at least 60 days’ advance written notice before a plant closing or mass layoff.
What is the WARN Act?
The Worker Adjustment and Retraining Notification (WARN) Act requires employers with 100 or more full-time employees to provide a minimum of 60 calendar days’ advance written notice before a plant closing that affects 50 or more employees, or a mass layoff affecting a qualifying number of workers. The Act is designed to give affected employees and their families time to seek new employment or pursue retraining. Many states have enacted “mini-WARN” laws with broader coverage, lower employee thresholds, and longer notice periods.
Why is the WARN Act Important for Employers?
- Failure to provide proper notice may result in liability for up to 60 days of back pay and benefits per affected employee, plus civil penalties
- State mini-WARN laws may apply to smaller employers and impose stricter requirements than the federal law
- Notices must be provided to affected employees, the relevant State Dislocated Worker Unit, and local government officials
- Limited exceptions to the 60-day requirement exist but are narrowly defined and must be thoroughly documented
FAQs
What qualifies as a “mass layoff” under the WARN Act?
A mass layoff occurs when at least 500 employees, or between 50 and 499 employees representing at least one-third of the workforce, are laid off within a 30-day period at a single employment site.
Are there exceptions to the 60-day notice requirement?
Yes, limited exceptions include unforeseeable business circumstances, natural disasters, and the “faltering company” exception for businesses seeking capital. However, employers must still provide as much notice as possible and document the basis for the exception.
Does the WARN Act apply to remote workers?
Yes, remote employees count toward WARN Act thresholds and are generally entitled to notice. Regulations typically treat remote workers as assigned to their designated reporting location for WARN Act purposes.
How ExtensisHR Can Help
We support employers navigating workforce reductions by:
- Assessing whether a planned layoff or closure triggers federal or state WARN Act obligations
- Reviewing applicable state mini-WARN laws for additional notice requirements
- Assisting with documentation and employee communication strategies throughout the process