The Worker Adjustment and Retraining Notification Act, commonly known as the WARN Act, is a federal law designed to protect workers and their families when major layoffs or business closures occur. Enacted in 1988, the WARN Act helps to ensure that employees receive advance notice before losing their jobs due to large-scale employment changes.
The WARN Act requires employers with 100 or more full-time workers to provide at least 60 calendar days’ written notice before a mass layoff or plant closure. A mass layoff typically involves 50 or more employees losing their jobs at a single site within 30 days. A plant closure refers to the permanent or temporary shutdown of a facility that affects 50 or more employees.
The purpose of the WARN Act is to give employees time to prepare for this kind of major transition. This includes finding new work, seeking retraining opportunities or making other financial and personal adjustments. Without this notice, workers can find themselves abruptly unemployed and unprepared, which is exactly what the law was created to prevent.
Exceptions and the potential for WARN Act violations
If an employer violates the WARN Act, affected employees may be entitled to compensation. Specifically, workers can sue for back pay and benefits for the period of violation, up to 60 days. In addition, employers may be subject to penalties and be required to pay fines to local governments. Courts can also award attorney’s fees to workers who prevail in a WARN Act lawsuit.
With that said, there are some exceptions to the notice requirement. Employers may be exempt from providing 60 days’ notice in cases of natural disasters, unforeseeable business circumstances or if the company was actively seeking capital or business that, if obtained, would have prevented the layoff. However, these exceptions are narrowly interpreted, and employers must still give as much notice as possible.
Some states have their own WARN laws that offer broader protections than the federal version. For example, they may apply to smaller employers or require longer notice periods. Workers should be aware of both federal and state WARN laws that may apply to their situation.
If you have recently been laid off without warning or suspect your employer failed to follow WARN requirements, it’s important to consult with an experienced legal team that can help you determine whether your rights were violated and what legal options are available to you.