Mass Layoffs & the WARN Act
The federal Worker Adjustment and Retraining Notification (WARN) Act requires larger employers to give 60 days’ written notice before a plant closing or mass layoff. The notice gives workers time to find new jobs, get training and plan their finances.
- Workers
- Employers
- California
- Illinois
- New Jersey
- New York
Who’s covered
- Generally, private employers with 100 or more full-time employees (or 100 or more employees who together work at least 4,000 hours a week, not counting overtime).
- Hourly and salaried workers, including managers, are entitled to notice.
What triggers notice
| Event | Federal threshold (summary) |
|---|---|
| Plant closing | Shutting down a site or unit that causes 50 or more full-time employees to lose their jobs within 30 days |
| Mass layoff | At one site within 30 days: 500 or more full-time employees, or 50 to 499 if they make up at least one-third of the workforce |
Layoffs over a 90-day period can sometimes be added together. Layoffs of more than 6 months and big cuts in hours can also count.
Exceptions
- Temporary projects: WARN doesn’t apply when a temporary facility closes or a project ends and workers were hired with the understanding that their jobs would end with it. This covers much construction work.
- Strikes and lockouts.
- Unforeseeable business circumstances and natural disasters, which can shorten the notice period. The employer must still give as much notice as possible.
If notice isn’t given
Workers may be owed back pay and benefits for each day of violation, up to 60 days. WARN is enforced through federal courts, not by a government agency, so workers usually bring a lawsuit, often as a group. The U.S. Department of Labor publishes guides but doesn’t investigate WARN complaints.
State mini-WARN laws
Several states, including California, New York, New Jersey, Illinois and others, have their own laws that cover smaller employers, require longer notice (such as 90 days in New York and New Jersey) or add severance. Check your state labor department.
If you get a layoff notice
- File for unemployment as soon as your job ends. See Unemployment Insurance
- Ask about final pay, unused vacation, and health insurance continuation (COBRA)
- Contact your state’s rapid response or workforce center for job search and training help
- Get copies of your training records and certifications
Standards & references
- DOL: WARN Act
- 20 CFR Part 639: WARN regulations
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