Employers' Requirements Under the Worker Adjustment and Retraining Notification Act (WARN) Act
The Worker Adjustment and Retraining Notification Act (WARN) was enacted on August 4, 1988
and became effective on February 4, 1989.
WARN offers protection to workers, their families and communities by requiring employers to
provide notice 60 days in advance of covered plant closings and covered mass layoffs. This notice
must be provided to either affected workers or their representatives (e.g., a labor union); to the State
dislocated worker unit; and to the appropriate unit of local government.
In general, employers are covered by WARN if they have 100 or more employees, not counting
employees who have worked less than 6 months in the last 12 months and not counting employees
who work an average of less than 20 hours a week. Private, for-profit employers and private,
nonprofit employers are covered, as are public and quasi-public entities which operate in a
commercial context and are separately organized from the regular government. Regular Federal,
State, and local government entities which provide public services are not covered.
Employees entitled to notice under WARN include hourly and salaried workers, as well as
managerial and supervisory employees. Business partners are not entitled to notice.
What Triggers Notice
Plant Closing: A covered employer must give notice if an employment site (or one or more facilities
or operating units within an employment site) will be shut down, and the shutdown will result in an
employment loss (as defined later) for 50 or more employees during any 30-day period. This does
not count employees who have worked less than 6 months in the last 12 months or employees who
work an average of less than 20 hours a week for that employer. These latter groups, however, are
entitled to notice (discussed later).
Mass Layoff: A covered employer must give notice if there is to be a mass layoff which does not
result from a plant closing, but which will result in an employment loss at the employment site
during any 30-day period for 500 or more employees, or for 50-499 employees if they make up at
least 33% of the employer's active workforce. Again, this does not count employees who have
worked less than 6 months in the last 12 months or employees who work an average of less than 20
hours a week for that employer. These latter groups, however, are entitled to notice (discussed
An employer also must give notice if the number of employment losses which occur during a 30-day
period fails to meet the threshold requirements of a plant closing or mass layoff, but the number of
employment losses for 2 or more groups of workers, each of which is less than the minimum number
needed to trigger notice, reaches the threshold level, during any 90-day period, of either a plant
closing or mass layoff. Job losses within any 90-day period will count together toward WARN
threshold levels, unless the employer demonstrates that the employment losses during the 90-day
period are the result of separate and distinct actions and causes.
Sale of Businesses
In a situation involving the sale of part or all of a business, the following requirements apply. (1) In
each situation, there is always an employer responsible for giving notice. (2) If the sale by a covered
employer results in a covered plant closing or mass layoff, the required parties (discussed later) must
receive at least 60 days notice. (3) The seller is responsible for providing notice of any covered
plant closing or mass layoff which occurs up to and including the date/time of the sale. (4) The
buyer is responsible for providing notice of any covered plant closing or mass layoff which occurs
after the date/time of the sale. (5) No notice is required if the sale does not result in a covered plant
closing or mass layoff. (6) Employees of the seller (other than employees who have worked less
than 6 months in the last 12 months or employees who work an average of less than 20 hours a
week) on the date/time of the sale become, for purposes of WARN, employees of the buyer
immediately following the sale. This provision preserves the notice rights of the employees of a
business that has been sold.
The term "employment loss" means:
(1) An employment termination, other than a discharge for cause, voluntary departure, or retirement;
(2) a layoff exceeding 6 months; or
(3) a reduction in an employee's hours of work of more than 50% in each month of any 6-month
Exceptions: An employee who refuses a transfer to a different employment site within reasonable
commuting distance does not experience an employment loss. An employee who accepts a transfer
outside this distance within 30 days after it is offered or within 30 days after the plant closing or
mass layoff, whichever is later, does not experience an employment loss. In both cases, the transfer
offer must be made before the closing or layoff, there must be no more than a 6 month break in
employment, and the new job must not be deemed a constructive discharge. These transfer
exceptions from the "employment loss" definition apply only if the closing or layoff results from the
relocation or consolidation of part or all of the employer's business.
An employer does not need to give notice if a plant closing is the closing of a temporary facility, or if
the closing or mass layoff is the result of the completion of a particular project or undertaking. This
exemption applies only if the workers were hired with the understanding that their employment was
limited to the duration of the facility, project or undertaking. An employer cannot label an ongoing
project "temporary" in order to evade its obligations under WARN.
An employer does not need to provide notice to strikers or to workers who are part of the bargaining
unit(s) which are involved in the labor negotiations that led to a lockout when the strike or lockout is
equivalent to a plant closing or mass layoff. Non-striking employees who experience an
employment loss as a direct or indirect result of a strike and workers who are not part of the
bargaining unit(s) which are involved in the labor negotiations that led to a lockout are still entitled
An employer does not need to give notice when permanently replacing a person who is an "economic
striker" as defined under the National Labor Relations Act.
Who Must Receive Notice
The employer must give written notice to the chief elected officer of the exclusive representative(s)
or bargaining agency(s) of affected employees and to unrepresented individual workers who may
reasonably be expected to experience an employment loss. This includes employees who may lose
their employment due to "bumping," or displacement by other workers, to the extent that the
employer can identify those employees when notice is given. If an employer cannot identify
employees who may lose their jobs through bumping procedures, the employer must provide notice
to the incumbents in the jobs which are being eliminated. Employees who have worked less than 6
months in the last 12 months and employees who work an average of less than 20 hours a week are
due notice, even though they are not counted when determining the trigger levels.
The employer must also provide notice to the State dislocated worker unit and to the chief elected
official of the unit of local government in which the employment site is located.
With three exceptions, notice must be timed to reach the required parties at least 60 days before a
closing or layoff. When the individual employment separations for a closing or layoff occur on
more than one day, the notices are due to the representative(s), State dislocated worker unit and
local government at least 60 days before each separation. If the workers are not represented, each
worker's notice is due at least 60 days before that worker's separation.
The exceptions to 60-day notice are:
(1) Faltering company. This exception, to be narrowly construed, covers situations where a
company has sought new capital or business in order to stay open and where giving notice would
ruin the opportunity to get the new capital or business, and applies only to plant closings;
(2) unforeseeable business circumstances. This exception applies to closings and layoffs that are
caused by business circumstances that were not reasonably foreseeable at the time notice would
otherwise have been required; and
(3) Natural disaster. This applies where a closing or layoff is the direct result of a natural disaster,
such as a flood, earthquake, drought or storm.
If an employer provides less than 60 days advance notice of a closing or layoff and relies on one of
these three exceptions, the employer bears the burden of proof that the conditions for the exception
have been met. The employer also must give as much notice as is practicable. When the notices are
given, they must include a brief statement of the reason for reducing the notice period in addition to
the items required in notices.
Form and Content of Notice
No particular form of notice is required. However, all notices must be in writing. Any reasonable
method of delivery designed to ensure receipt 60 days before a closing or layoff is acceptable.
Notice must be specific. Notice may be given conditionally upon the occurrence or non-occurrence
of an event only when the event is definite and its occurrence or nonoccurrence will result in a
covered employment action less than 60 days after the event.
The content of the notices to the required parties is listed in section 639.7 of the WARN final
regulations. Additional notice is required when the date(s) or 14-day period(s) for a planned plant
closing or mass layoff are extended beyond the date(s) or 14-day period(s) announced in the original
No particular form of record is required. The information employers will use to determine whether,
to whom, and when they must give notice is information that employers usually keep in ordinary
business practices and in complying with other laws and regulations.
An employer who violates the WARN provisions by ordering a plant closing or mass layoff without
providing appropriate notice is liable to each aggrieved employee for an amount including back pay
and benefits for the period of violation, up to 60 days. The employer's liability may be reduced by
such items as wages paid by the employer to the employee during the period of the violation and
voluntary and unconditional payments made by the employer to the employee.
An employer who fails to provide notice as required to a unit of local government is subject to a civil
penalty not to exceed $500 for each day of violation. This penalty may be avoided if the employer
satisfies the liability to each aggrieved employee within 3 weeks after the closing or layoff is ordered
by the employer.
Enforcement of WARN requirements is through the United States district courts. Workers,
representatives of employees and units of local government may bring individual or class action
suits. In any suit, the court, in its discretion, may allow the prevailing party a reasonable attorney's
fee as part of the costs.
Specific requirements of the Worker Adjustment and Retraining Notification Act may be found in
the Act itself, Public Law 100-379 (29 U.S.C. 210l, et seq.) The Department of Labor published
final regulations on April 20, 1989 in the Federal Register (Vol. 54, No. 75). The regulations
appear at 20 CFR Part 639.
Source: Department of Labor Website
| Last accessed: June 26, 2009.
Information on this website is provided for information purposes only, and its presentation herein neither creates an attorney-client privilege nor constitutes legal advice.