Mass layoffs and plant closures are tough for everyone involved. Employees lose their jobs, and businesses face financial and legal consequences. The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that protects workers by requiring advance notice of large-scale layoffs. If you’re an employer planning workforce reductions or an employee wondering about your rights, here’s what you need to know.
What Is the WARN Act?
The WARN Act, passed in 1988, requires certain employers to provide 60 days’ notice before a mass layoff or plant closing. The goal is to give employees time to prepare for job loss, seek new employment, and access retraining opportunities (29 U.S.C. § 2101 et seq.).
This law applies to private employers with 100 or more full-time employees. It covers two main scenarios:
- Plant Closures – A full shutdown of a worksite that affects at least 50 full-time employees.
- Mass Layoffs – A workforce reduction affecting at least 50 employees and one-third of the workforce at a single location, or any layoff of 500 or more employees regardless of percentage (29 U.S.C. § 2101(a)(2)-(3)).