WARN Act

The WARN Act, formally known as the Worker Adjustment and Retraining Notification Act, is a U.S. federal law that requires certain employers to provide advance written notice before conducting a plant closing or a mass layoff affecting a significant number of employees. The law is designed to give affected workers and their families time to prepare for the transition, seek alternative employment, or access retraining resources before job losses actually occur. The WARN Act generally applies to employers with 100 or more full-time employees, and it typically requires 60 days advance notice before a covered plant closing or mass layoff, with specific thresholds defining what qualifies as a covered event based on the number of employees affected and the size of the overall workforce. Certain exceptions exist for circumstances such as unforeseeable business circumstances or natural disasters, though these exceptions are narrowly interpreted. Employers who fail to provide the required WARN Act notice can face significant financial liability, including back pay and benefits owed to affected employees for the notice period that should have been provided. Companies planning significant layoffs or closures need to carefully assess whether the WARN Act applies to their specific situation well in advance of taking action.