Understand the Worker Adjustment and Retraining Notification Act (WARN): What It Is and What It Does

The Worker Adjustment and Retraining Notification Act (WARN) is a law enacted in 1988 in the United States to protect workers, their families, and communities from layoffs. It requires employers to give advance notice of plant closures and mass layoffs when they occur. WARN provides affected workers and their families with time to adjust to the prospective loss of employment, seek and obtain alternative jobs, and, if necessary, enter skills training or retraining programs so the transition is as smooth as possible.

What Does WARN Protect?

The WARN Act covers all private sector employers with 100 or more employees, as well as most public sector employers. The WARN Act applies to employers who employ 100 or more employees that are included in the average of the preceding 12 months, or 100 or more employees who make up at least 33% of the workforce that works at least 20 or more hours each week. WARN also covers certain state and local government entities (including schools).

The WARN Act requires these employers to give advance notice of plant closings or mass layoffs to affected employees, their union representatives, the state, and local governments. The notice must be provided at least 60 days prior to the date of a mass layoff or plant closing. The law provides exceptions for when employers can provide shorter notice or no notice at all.

What Does WARN Not Protect?

The WARN Act does not cover layoffs or terminations of individual employees for any reason other than plant closures or mass layoffs. It does not provide protection to workers affected due to federal government shutdowns, disasters, or strikes. WARN also does not provide protection to certain agricultural employees and employees of small businesses.

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What Are the Penalties for Violations of WARN?

Employers that violate the WARN Act are required to pay affected employees back pay and benefits for any wages and benefits lost due to the violation, as well as civil penalties. The law also allows affected employees to bring a private lawsuit against the employer for damages or to enforce their rights under the law. An employee who prevails in a private lawsuit is entitled to recover his or her lost wages and benefits, court costs, and reasonable attorneys’ fees.

Related Legal Concepts

WARN intersects with several other employment protection statutes that safeguard worker rights. The Age Discrimination in Employment Act (ADEA) may apply when mass layoffs disproportionately affect older workers, while the Americans With Disabilities Act (ADA) ensures proper accommodations during workforce reductions. The Administrative Procedure Act governs how federal agencies implement WARN regulations, and the Rehabilitation Act of 1973 provides additional protections for disabled employees in federal workplaces facing closures.

The Bottom Line

WARN serves as a crucial safety net, ensuring workers receive adequate notice before major employment disruptions like plant closures and mass layoffs. Understanding WARN’s coverage requirements, notice periods, and penalties helps both employers comply with their obligations and employees know their rights during workforce transitions. For guidance specific to your situation, always consult a qualified, licensed attorney.