WARN Act Explained: Your Rights When Companies Don't Give Notice

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires large employers to give workers 60 days advance notice before mass layoffs or plant closings. If your employer failed to provide this notice, you may be entitled to significant compensation. This guide explains how the WARN Act works and what to do if your rights were violated.

What Is the WARN Act?

The WARN Act, enacted in 1988, was designed to give workers and their families transition time to adjust to job loss, seek new employment, and access training. It requires covered employers to provide 60 calendar days written notice before:

• Plant closings affecting 50 or more employees
• Mass layoffs affecting 500 or more employees
• Mass layoffs affecting 50-499 employees if they represent at least 33% of the workforce

Important note: This guide discusses federal WARN Act requirements. Many states have their own "mini-WARN" laws with additional protections. Check your state's specific requirements.

Does the WARN Act Apply to Your Situation?

Not all layoffs are covered by the WARN Act. Understanding whether it applies to you is the first step in determining your rights.

Covered Employers

The WARN Act applies to employers with:

• 100 or more full-time employees, OR
• 100 or more employees (including part-time) who work a combined 4,000 hours per week or more (excluding overtime)

Entities that count as one employer:

• A single site of employment (factory, office, facility)
• All locations within reasonable geographic proximity under common ownership
• Related entities that function as a single employer

Covered Employees

You're considered a covered employee if you:

• Work full-time (at least 20 hours per week and at least 6 months in the last 12 months)
• OR work part-time (less than 20 hours per week OR less than 6 months in the last 12 months, though you may have reduced protections)

Excluded from coverage:

• Employees who work less than 6 months
• Strikers or locked-out workers
• Temporary employees who knew their employment was temporary
• Business partners

Triggering Events

The WARN Act is triggered by:

Plant closing: A permanent or temporary shutdown of a single site or operating unit within a site, resulting in job loss for 50 or more employees (excluding part-time) within a 30-day period.

Mass layoff: A reduction in force that doesn't result from a plant closing and results in job loss for:

• 500 or more employees (excluding part-time), OR
• 50-499 employees IF they represent 33% or more of the active workforce

Aggregation rule: Layoffs occurring within a 90-day period can be combined. If an employer conducts smaller layoffs to avoid triggering WARN, those layoffs may be aggregated if they collectively meet the thresholds.

What Notice Must Employers Provide?

When the WARN Act applies, employers must provide written notice at least 60 calendar days before the layoff or closure.

Notice Recipients

Written notice must go to:

• Affected employees or their representatives (unions)
• The state's dislocated worker unit
• The chief elected official of local government

Required Notice Content

The notice must include:

• Name and address of the employment site
• Whether the action is expected to be permanent or temporary
• The expected date of the first separation and the schedule of separations
• Job titles of positions being eliminated
• Names of employees in those positions (in union settings, union representatives receive this)
• Statement of bumping rights, if any
• Name, address, and phone number of a company official to contact

Exceptions to the 60-Day Requirement

The WARN Act includes limited exceptions that allow employers to provide less than 60 days notice:

Faltering Company Exception

Applies when:

• The company is actively seeking capital or business
• The company reasonably believed advance notice would prevent obtaining the capital or business
• The capital or business would have allowed the employer to avoid or postpone the shutdown

Key limitation: This exception only applies to plant closings, not mass layoffs.

Unforeseeable Business Circumstances

Applies when:

• The layoff or closure was caused by business circumstances not reasonably foreseeable at the time 60-day notice would have been required

Examples that may qualify:

• Unexpected loss of major contract
• Sudden and unexpected economic downturn
• Unexpected cancellation of orders
• Natural disasters affecting business

What doesn't qualify:

• General market conditions or seasonal fluctuations
• Circumstances that were foreseeable
• Poor management planning

Natural Disaster Exception

Applies when the layoff or closure is a direct result of a natural disaster such as:

• Flood
• Earthquake
• Drought
• Storm
• Tidal wave

Even with Exceptions

Even when exceptions apply, employers must:

• Still provide as much notice as practicable
• Explain why 60 days notice wasn't possible
• Give written notice as soon as practicable

Your Rights If WARN Was Violated

If your employer failed to provide proper notice under the WARN Act, you may be entitled to significant remedies.

Potential Compensation

Back pay: You may be entitled to back pay for each day of violation, up to 60 days. This includes:

• Regular wages you would have earned
• Cost of any benefits you would have received (or the employer's cost of providing those benefits)

Example: If you earned $1,000/week and your employer gave no notice, you could be entitled to approximately $8,571 (60 days of back pay).

Civil penalties: Employers who violate WARN may also be liable for civil penalties of up to $500 per day of violation, payable to the local government (this doesn't go directly to employees).

Calculating Your Claim

To calculate potential WARN Act damages:

1. Determine the notice shortfall: Days of violation = 60 days - actual notice given

2. Calculate daily compensation: Your daily rate = (weekly salary + daily benefit value) / 7

3. Total potential recovery: Days of violation × daily rate = potential compensation

Bringing a WARN Act Claim

Who can sue:

• Individual affected employees
• Unions on behalf of members
• Local governments (for civil penalties)

Statute of limitations: You must file suit within 3 years of the WARN violation (some courts apply a shorter period—consult an attorney promptly).

Class actions: WARN Act cases are commonly brought as class actions, representing all affected employees. This spreads legal costs and strengthens the case.

State "Mini-WARN" Laws

Many states have their own notification laws that may provide greater protection than federal WARN.

States with Mini-WARN Laws

States with their own WARN-like laws include:

• California (Cal-WARN)
• New York
• Illinois
• New Jersey
• Maryland
• Wisconsin
• Tennessee
• Maine
• Hawaii

Key Differences in State Laws

State laws may differ from federal WARN in:

Lower thresholds:

• California: 75 or more employees
• New York: 50 or more employees (with proposed legislation to lower further)

More covered employees:

• Some states include part-time workers
• Some cover temporary workers

Longer notice periods:

• Some states require 90 days notice

No exceptions:

• Some state laws don't include the same exceptions as federal WARN

Greater penalties:

• Some states provide additional damages or penalties

Check Your State

If you were laid off, research your state's specific requirements or consult with a local employment attorney who can advise on both federal and state claims.

What to Do If You Think WARN Was Violated

If you believe your employer didn't provide required notice, take these steps:

1. Document Everything

Gather and preserve:

• Your offer letter and employment documents
• Any notice you received about the layoff
• The date you were notified
• Your last day of work
• Pay stubs showing your compensation
• Benefit statements
• Communications from your employer about the layoff
• Company announcements, emails, or memos
• News articles about the layoff

2. Identify the Scale of the Layoff

Try to determine:

• How many people were laid off?
• Were they all at one location or multiple sites?
• Did it happen all at once or over time?
• What did the employer say about the reason?

3. Connect with Other Affected Workers

WARN claims are strongest when brought collectively:

• Connect with former colleagues
• Share information about your situations
• Consider whether a class action makes sense

4. Consult an Employment Attorney

A WARN Act attorney can:

• Evaluate whether you have a claim
• Determine both federal and state law violations
• Advise on the best approach (individual vs. class action)
• Handle the case on contingency (no upfront cost)

Many employment attorneys offer free initial consultations for WARN cases.

5. File Promptly

Don't wait too long—while the statute of limitations is generally 3 years, evidence becomes harder to gather over time, and some courts apply shorter periods.

WARN Act FAQs

I was laid off with no notice. Do I have a WARN claim?

Possibly. Key questions are:

1. Did your employer have 100+ employees?
2. Were 50+ people laid off at your location within 30 days?
3. Did any exceptions apply (unforeseeable circumstances, etc.)?

An attorney can help evaluate your specific situation.

My employer gave 2 weeks notice. Is that a WARN violation?

If the WARN Act applied (100+ employees, 50+ layoffs), and no exceptions applied, then yes—providing only 14 days notice instead of 60 would entitle you to approximately 46 days of back pay.

The company is going out of business. Can I still get WARN damages?

You may still have a claim, but recovery depends on the company's remaining assets. In bankruptcy, WARN claims are treated as unsecured claims, which often receive limited recovery. However, claims against parent companies or individual decision-makers may sometimes be possible.

Does severance pay offset WARN damages?

It depends on how the severance is structured. Severance that is specifically designated as WARN damages and covers the notice period may offset your claim. General severance not tied to WARN typically doesn't offset.

My employer says COVID or market conditions made the layoff unforeseeable. Is that valid?

General economic conditions or market fluctuations typically don't qualify as "unforeseeable business circumstances." The exception requires sudden, unexpected events that couldn't have been reasonably anticipated. Many employers incorrectly claimed this exception during COVID—courts have rejected some of these defenses.

Can I file a WARN claim even if I signed a severance agreement?

Possibly. Many severance releases don't validly waive WARN claims because:

• WARN claims may be considered unpaid wages (non-waivable in some states)
• The release may not specifically mention WARN
• You may not have received adequate consideration for waiving WARN rights

Have an attorney review your severance agreement.

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Key Takeaways

1. WARN requires 60 days notice for mass layoffs (50+ employees) by large employers (100+ employees)
2. Limited exceptions exist but are often misused by employers
3. Violations entitle you to back pay for each day of insufficient notice
4. State laws may provide additional protection with lower thresholds or longer notice periods
5. Document everything if you suspect a violation
6. Consult an employment attorney — many take WARN cases on contingency
7. Time matters — file promptly to preserve your rights

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Related Resources:

• Understanding Severance Agreements →
• Non-Compete Agreements: What You Need to Know →
• Legal Rights Overview →