What Is the WARN Act?
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law enacted in 1988 that protects workers, their families, and communities by requiring most employers with 100 or more employees to provide 60 calendar days advance notice of plant closings and mass layoffs. The law gives workers and their families time to prepare for job transitions, seek new employment, or enroll in retraining programs.
Administered by the U.S. Department of Labor, WARN Act notifications must be submitted to state workforce agencies (called Rapid Response units) and local elected officials at the same time workers are notified. These public filings become the primary data source for mass layoff tracking.
Who Is Covered?
The federal WARN Act applies to employers with 100 or more full-time employees, or 100 or more employees (including part-time) who work a combined total of at least 4,000 hours per week. Part-time workers (those averaging fewer than 20 hours per week or employed for fewer than 6 of the 12 months before notice is required) are generally not counted toward the thresholds.
The law covers:
- Plant closings - permanent or temporary shutdown of a single site of employment affecting 50 or more full-time employees
- Mass layoffs - reductions not resulting from plant closings that affect 500+ full-time employees, or 50–499 full-time employees if they represent at least 33% of the workforce at a single site
What Notice Are You Entitled To?
Covered employees are entitled to 60 calendar days of notice before the termination or layoff begins. This notice must:
- Be in writing (no minimum length required)
- State clearly whether the action is permanent or temporary
- Identify the expected date of first separations and the overall schedule
- Provide the job titles and number of affected positions
- Include the name and phone number of a company official to contact for further information
Unions representing affected workers must also receive notice with additional information including the name and address of each affected employee and the bumping rights that may affect each worker.
Exceptions to the 60-Day Requirement
Employers may give less than 60 days notice under three limited exceptions, but must still provide as much notice as practicable and include a written statement explaining which exception applies:
Faltering Company Exception
Applies when a company was actively seeking capital or business at the time notice was required, there was a realistic possibility this capital or business would have been obtained, and the notice would have precluded the employer from obtaining the capital or business needed to avoid the closing.
Unforeseeable Business Circumstances Exception
Applies to plant closings or mass layoffs caused by business circumstances that were not reasonably foreseeable at the time 60-day notice would have been required, such as the sudden loss of a major customer, or an unexpected economic crisis.
Natural Disaster Exception
Applies when a plant closing or mass layoff is a direct result of a natural disaster such as a flood, earthquake, drought, storm, tidal wave, or similar natural disaster. This exception is narrowly construed and does not generally extend to the economic consequences of a natural disaster.
Penalties for WARN Act Violations
Employers who violate the WARN Act are liable to each affected employee for:
- Back pay - one day's pay for each day of violation, up to 60 days
- Benefits - the value of medical expenses actually incurred, and any other benefits owed under an employee benefit plan
- Civil penalties - up to $500 per day of violation for failure to notify the local government (capped at $30,000 total per violation)
The employer can reduce liability if it pays all back pay and benefits due within 3 weeks after the plant closing or layoff. Workers can sue in federal district court, and successful plaintiffs may recover attorneys' fees.
State "Mini-WARN" Laws
Several states have enacted their own WARN-like laws with broader coverage:
- California - Covers employers with 75+ employees; threshold is 50+ workers laid off within 30 days; no business exception for closures
- New York - Covers employers with 50+ employees; notice period extended to 90 days
- Illinois - Covers employers with 75+ employees; 60-day notice required
- New Jersey - No minimum size threshold for employers; requires 60-day notice and severance pay equal to one week per year of service
- Iowa - Covers employers with 25+ employees
What Should You Do If You Receive a WARN Notice?
- Note the dates - verify that 60 days (or state equivalent) of notice was actually given
- Review your rights - check whether your state has a mini-WARN law with different or additional protections
- Contact your state's Rapid Response program - these programs offer free reemployment assistance, UI information, and job training referrals
- File for unemployment insurance - apply immediately; don't wait until your last day of work
- Consult an employment attorney - if you believe your employer provided insufficient notice or is otherwise in violation of WARN
- Negotiate severance - WARN notice does not require severance pay (except in New Jersey), but many employers offer it; your leverage is highest before you sign anything
How to File a WARN Act Complaint
Unlike many federal employment laws, the WARN Act does not have a federal agency enforcement mechanism. Instead, workers must bring a private lawsuit in U.S. District Court within the statute of limitations (typically 3 years). Class action lawsuits are common when large numbers of workers are affected. Several plaintiff-side law firms specialize in WARN Act class actions and take cases on contingency.
Your state's department of labor may also investigate violations under state WARN laws, which can be a faster enforcement path.
Resources
- U.S. Department of Labor WARN Act guidance: dol.gov/agencies/eta/layoffs/warn
- State Rapid Response programs: contact your state workforce agency
- PlainLayoffs WARN Act data: recent notices and state-by-state data