Understanding the WARN Act for Layoffs

Employment laws in the United States give employees legal rights. Employment laws also give employers responsibilities. The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that covers you if you are facing a layoff. This article answers frequently asked questions about the WARN Act.

Every situation is different. Speaking with an employment lawyer will let you ask specific questions and get tailored legal advice. If you are an employee anticipating a layoff, you should contact a local and experienced employment law attorney.

What Is the WARN Act? 

The Worker Adjustment and Retraining Notification Act (WARN Act) is a federal law passed in 1988. The WARN Act requires employers to give their employees advance notice in the event of layoffs or plant closures. The WARN Act protects workers by giving them time to prepare for the layoff and look for other employment and training opportunities. 

Who Is Covered by the WARN Act?

The WARN Act covers employers with 100 or more full-time employees. It also covers employers with 100 or more employees, including part-time employees who work a combined total of at least 4,000 hours per week. WARN regulations cover both private- and public-sector employers. Federal, state, and local government entities that provide public services are exempt. 

The employees entitled to WARN Act notice include hourly and salaried workers and supervisors. Employers must also provide union representatives with WARN Act notice. 

What Are the Notice Requirements of the WARN Act?

The WARN Act requires employers to give affected employees advance notice of 60 days of a mass layoff or plant closing. The WARN Act defines:

• Mass layoff: An employment loss at a single site of at least 33% of the active employees and at least 50 employees over 30 days. This is separate from a plant closing.
• Plant closing: The shutdown of a single site of employment or one or more facilities or operating units within a single site, resulting in job losses for 50 or more employees in a 30-day period. 

What Is in a WARN Act Notice?

A WARN notice is a written statement that includes all the required and relevant information. The WARN Act written notice must be clear, concise, and contain all the information the WARN Act requires. That information includes:

• Whether the layoffs will be permanent or temporary
• The anticipated schedule for making layoffs
• The contact information for company representatives
• The jobs and positions affected and the names of workers holding those positions

The employer must deliver the required notice to every affected employee, any employee representatives, the state dislocated worker unit or similar agency, and the local government. 

Are There Exemptions to the WARN Act? 

The WARN Act provisions have three main exemptions. A covered employer does not have to give the full 60-day notice for the following exceptions:

• The business is a faltering company
• There are unforeseeable business circumstances
• Natural disasters

Courts interpret these exceptions very narrowly. To meet the exception, the employer must show that providing notice would have hurt its chances to obtain new investments or new investors that would have let it avoid or postpone the layoffs. 

What Are the Penalties for Violating the WARN Act?

Employers that violate the WARN Act face substantial penalties. An employer may have to pay damages to all the affected employees. A violation of the WARN Act could result in damages that include back pay and benefits for the period of violation, up to 60 days. Employers may also face civil penalties of up to $500 for each day of violation. 

What Are the Resources Available for Employees Affected by Layoffs?

There are several resources available for employees affected by the WARN Act. Workforce development agencies can provide you with training, counseling, job search services, and information on unemployment benefits.

The U.S. Department of Labor (DOL) offers guidance for employers. State labor departments can also offer local support and guidance regarding any state and local laws. A local lawyer with a focus on employment law is the best resource for advice tailored to your specific circumstances. 

What Are the State Laws Regarding Layoffs?

Many states have laws regarding layoffs and plant closings. State laws can have different thresholds for which employers are covered, notice periods, and other specific procedures. Employers must comply with both federal and state laws.

If you are an employee anticipating a layoff, you should be aware that you have rights under the federal WARN Act. For specific information and legal advice, contact an experienced employment law attorney. An employment law attorney can protect your rights and look into whether your employer violated your rights.