WARN Act: Complete Guide to Mass Layoff Notice Requirements

The Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide 60 days' advance notice before mass layoffs or plant closings. Understanding your WARN Act rights can mean significant compensation if your employer violates the law.

What Is the WARN Act?

The Basics

The WARN Act is a federal law that requires:

• 60 days advance written notice of qualifying layoffs or plant closings
• Notice to affected workers, their union (if applicable), and state/local government
• Applies to employers with 100+ employees

Why WARN Exists

Purpose:

• Give workers time to find new employment
• Allow workers to prepare financially
• Enable workforce development agencies to assist
• Provide time for retraining programs

Federal vs. State WARN

Federal WARN:

• Applies nationwide
• Minimum standard

State "mini-WARN" laws:

• Many states have stricter versions
• Lower employee thresholds
• Longer notice periods
• Broader coverage

States with mini-WARN laws include:

• California (Cal-WARN)
• New York
• Illinois
• New Jersey
• Tennessee
• Maryland
• Others

Check your state's law — it may provide more protection.

When Does WARN Apply?

Covered Employers

WARN applies if:

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

Calculating 100 employees:

• Count all employees at all sites
• Part-time counts if total hours threshold met
• Temporary employees generally not counted

Covered Events

1. Plant Closing

A "plant closing" under WARN means:

• Permanent or temporary shutdown of a "single site of employment"
• Results in employment loss for 50 or more employees
• Excludes part-time employees from the count

2. Mass Layoff

A "mass layoff" under WARN means either:

Option A:

• 500 or more employees (excluding part-time) affected, regardless of percentage

Option B:

• 50-499 employees affected, AND
• Those employees constitute 33% or more of the active workforce at that site

Employment Loss Defined

What counts as "employment loss":

• Termination (other than for cause, voluntary quit, or retirement)
• Layoff exceeding 6 months
• Reduction in work hours of more than 50% in each month for 6 months

Aggregation Rules

Important: Individual layoffs that don't meet thresholds can be combined if they occur within a 90-day period and together meet the threshold.

Example: If an employer lays off 30 people in March and 30 people in May at the same site, both within 90 days, that's 60 employees and may trigger WARN.

Notice Requirements

Who Gets Notice

Three parties must receive notice:

1. Affected employees or their representatives
2. State dislocated worker unit (usually the state labor department)
3. Local government chief elected official

What Notice Must Include

For employees:

• Statement that notice is being provided under WARN
• Name and address of employment site
• Name and phone number of company contact
• Expected date of first separation
• Whether layoff is expected to be permanent or temporary
• Job titles and number of affected employees in each job classification
• Bumping rights information (if applicable)

Timing of Notice

60 days before:

• First termination takes effect
• Layoff begins
• Plant closing occurs

Notice starts the clock — early notice doesn't hurt the employer but gives workers more time.

Exceptions to 60-Day Notice

Faltering Company Exception

Applies when:

• Company is actively seeking capital or business
• Giving notice would prevent obtaining that capital/business
• Must be realistic prospect of business or capital
• Only applies to plant closings, not mass layoffs

Burden on employer to prove exception applies.

Unforeseeable Business Circumstances

Applies when:

• Circumstances were not reasonably foreseeable
• Examples: sudden loss of major contract, unexpected strike, natural disaster
• Must still give as much notice as practicable

What's not unforeseeable:

• Gradual economic decline
• Foreseeable contract expirations
• Normal business cycles

Natural Disaster

Applies when:

• Plant closing or mass layoff is direct result of natural disaster
• Examples: flood, earthquake, drought, storm
• Still must give as much notice as practicable

Key Point on Exceptions

Even with exceptions:

• Employer must still give notice — just shorter
• Notice must explain why 60 days not given
• Brief statement of basis for reduced notice required
• Employer bears burden of proving exception

Your Rights Under WARN

If Notice Is Given Properly

You receive:

• 60 days' advance notice
• Time to job search while still employed
• Continued pay and benefits during notice period
• Ability to plan financially

If Notice Is Not Given

You may be entitled to:

• Back pay for each day of violation (up to 60 days)
• Benefits continuation for violation period
• Attorney's fees if you prevail in lawsuit
• Additional penalties for the employer

WARN Act Violations

What Constitutes a Violation

Common violations:

• No notice given
• Notice given but less than 60 days
• Notice didn't include required information
• Employer miscalculated and thought WARN didn't apply

Calculating Damages

Back pay calculation:

• Daily rate = regular rate of pay (including overtime average)
• Up to 60 days of back pay, minus any wages paid during that period
• Benefits value also included

Example:

• Employee earns $30/hour, 40 hours/week = $1,200/week
• No WARN notice given
• Potential damages: Up to 60 days × daily rate, minus any severance received

Civil Penalty

Additional penalty:

• Up to $500 per day to the local government
• Not given to employees
• Reduces if employer satisfies liability to employees within 3 weeks

Enforcing Your WARN Rights

Who Can Sue

You can bring a lawsuit if:

• You experienced an employment loss
• WARN should have applied
• Proper notice wasn't given

Class actions: Common for WARN violations since many workers are affected.

Statute of Limitations

File within:

• Generally 3 years for federal WARN (treated as ERISA-type claim)
• Some courts say 2 years
• State mini-WARN may have different deadlines
• Act promptly — don't wait

Where to Sue

Federal district court:

• WARN is federal law
• Can file in any district with jurisdiction

Finding an Attorney

WARN claims typically handled by:

• Employment lawyers
• Class action firms
• Often on contingency (no upfront cost)

To find an attorney:

• National Employment Law Project
• Your state bar's lawyer referral service
• American Association for Justice

WARN Act Checklist

Determining If WARN Applies

• [ ] Does employer have 100+ employees?
• [ ] Is this a plant closing (50+ employees lose jobs)?
• [ ] Is this a mass layoff (500+ employees, OR 50+ AND 33%)?
• [ ] Were layoffs within 90 days combined?
• [ ] Was 60-day written notice provided?
• [ ] Did notice go to workers, state, and local government?

If You Think WARN Was Violated

• [ ] Document your last day of work
• [ ] Note when (if at all) you received written notice
• [ ] Gather employment documents
• [ ] Contact employment attorney
• [ ] Consider joining or starting class action
• [ ] File within statute of limitations

State Mini-WARN Laws

California (Cal-WARN)

Stricter than federal:

• 75 employees triggers coverage
• Covers relocations in addition to closings/layoffs
• Different calculation methods

New York

NY WARN applies to:

• Employers with 50+ employees
• Lowers threshold significantly

Other States

Check your state's law — many have:

• Lower employee thresholds
• Longer notice periods
• Additional requirements
• Different penalties

Common Questions

Does WARN apply to my layoff?

Count the total employees affected at your worksite in a 90-day period. If it's 50+ from a closing, 500+ from a layoff, or 50+ representing 33% of the workforce, WARN likely applies.

I got less than 60 days notice. Now what?

You may have a claim for back pay for the shortfall period. Consult an employment attorney to evaluate your specific situation.

My employer says an exception applies. Are they right?

Employers must prove exceptions. Vague claims of "unforeseeable circumstances" often don't hold up. An attorney can evaluate whether the claimed exception is legitimate.

Can I file for unemployment AND pursue WARN damages?

Yes. WARN damages are back pay, not unemployment benefits. You can receive both, though you may need to report WARN damages on your unemployment claim.

What if my employer goes bankrupt?

WARN claims can be filed in bankruptcy proceedings. You may be an unsecured creditor with a WARN claim, though recovery may be limited.

Does severance I received offset WARN damages?

Yes, voluntary severance payments may reduce WARN liability. However, if severance is less than 60 days' pay, you may still have a claim for the difference.

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Key Takeaways

1. 60 days written notice required for mass layoffs and plant closings
2. Applies to employers with 100+ employees (lower in some states)
3. Covers 50+ employees for plant closings and certain mass layoffs
4. Exceptions are narrow and employer must prove them
5. Violations mean back pay up to 60 days plus benefits
6. Check state law — mini-WARN may provide more protection
7. Consult an attorney if you think WARN was violated

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Related Resources:

• Severance Negotiation →
• Unemployment Benefits →
• Wrongful Termination →
• First 24 Hours After Layoff →