Who It Covers
Employers—The Worker Adjustment and Retraining Notification (WARN) Act generally covers employers with 100 or more employees, not counting those who worked less than six months in the last 12 months and those who work an average of less than 20 hours a week. Private, for-profit employers and private, non-profit 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 providing public services are not covered.
Covered Employees
Employees entitled to notice include managers and supervisors, as well as hourly and salaried workers. Business partners aren’t entitled to notice.
Employment Loss
"Employment loss" means:
- Employment termination, other than a discharge for cause, voluntary departure, or retirement
- A layoff exceeding 6 months, or
- A reduction in an employee's work hours of more than 50% in each month of any 6-month period
Covered Plant Closings
A covered plant closing occurs when an employment site (or one or more facilities or operating units within an employment site) will be shut down, and the shutdown will create employment loss for 50 or more covered employees during any 30-day period.
Covered Mass Layoffs
A covered mass layoff occurs when a layoff of six months or longer affects either 500 or more workers or at least 33 percent of the employer's workforce when the layoff affects between 50 and 499 workers. Note: The number of affected workers is the total number laid off during a 30-day (or in some cases 90-day) period.
Exceptions
WARN does not apply to closure of temporary facilities or the completion of an activity when workers were hired only for that activity’s duration. WARN also provides for less than 60 days’ notice when layoffs result from a faltering company’s closure, unforeseeable business circumstances, or a natural disaster.
WARN Act Penalties/Sanctions
An employer who violates the WARN provisions is liable to each employee for an amount equal to back pay and benefits for the period of the violation, up to 60 days. This may be reduced by the period of any notice given, and any voluntary payments the employer made to the employee.
An employer who fails to provide the required notice to the unit of local government is subject to a civil penalty not to exceed $500 for each day of violation. The employer may avoid this penalty by satisfying the liability to each employee within three weeks after the closing or layoff.
Enforcement
The United States district courts enforce WARN requirements. Workers, representatives of employees, and units of local government may bring individual or class action suits. In any suit, the court may allow the prevailing party a reasonable attorney's fee as part of the costs.
Additional Information
Find specific WARN Act requirements in the act itself, Public Law 100-379 (29U.S.C.2101, et seq.). The U.S. Department of Labor published final regulations April 20, 1989 in the Federal Register (Vol. 54, No. 75). The regulations appear at 20 CFR Part 639.
The U.S. Department of Labor has issued guides to provide workers and employers an overview of their rights and responsibilities under the WARN Act.
Need more information? Visit the U.S. Department of Labor Web site or contact Ms. Ceola Coles at 202.693.3519.
Note: DEW has no administrative or enforcement responsibility under WARN and cannot provide specific advice or guidance with respect to individual situations.
Sample WARN Letter
