{"id":4771,"date":"2016-04-04T10:47:44","date_gmt":"2016-04-04T15:47:44","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/employment-law-and-human-resources\/the-worker-adjustment-and-retraining-notification-act-warn.html"},"modified":"2024-06-06T05:35:41","modified_gmt":"2024-06-06T10:35:41","slug":"the-worker-adjustment-and-retraining-notification-act-warn","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/employment-law-and-human-resources\/the-worker-adjustment-and-retraining-notification-act-warn.html","title":{"rendered":"The Worker Adjustment and Retraining Notification Act (WARN)"},"content":{"rendered":"\n
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The Worker Adjustment and Retraining Notification Act (WARN)<\/h1>\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Melissa Bender, Esq.<\/a>\n | Last reviewed\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Businesses must make difficult decisions during difficult economic times. These decisions sometimes include closing parts of a business and laying off workers. When a company reaches a certain size, affected employees must get written notice of layoffs. How can you tell if your employees should get a notice of an impending layoff or shutdown?<\/p>\r\n

The Worker Adjustment and Retraining Notification Act (WARN) explains what the federal act covers. It also explains how businesses must notify their workers in the event of a business-wide layoff. Some states have similar laws, known as "mini-WARN acts," that resemble the federal WARN Act.<\/p>\r\n

This article helps explain what these acts require a covered employer to do when economics force a business to close.<\/p>\r\n

What Is the WARN Act?<\/h2>\r\n

During the 1980s, downsizing and layoffs were the order of the day. Congress enacted WARN in 1988 to give laid-off employees time to look for other employment after a layoff.<\/p>\r\n

Applying for unemployment insurance and other employee benefits takes time. So, the WARN Act contains a provision allowing workers to begin that process while still working and drawing a paycheck at their old job.<\/p>\r\n

Another WARN Act rule is a notification to local authorities, such as the mayor or city council. This helps minimize the economic impact of the plant closure and lets civic response agencies prepare for the effects.<\/p>\r\n

Who Does WARN Cover?<\/h2>\r\n

The federal WARN Act<\/a> applies to businesses with more than 100 full-time employees. Small business owners with fewer workers aren’t affected by WARN regulations.<\/p>\r\n

But your duty may not end there. State laws can be more restrictive than federal laws. For instance, California’s version<\/a> of the WARN Act applies to businesses with 75 full- or part-time employees.<\/p>\r\n

Covered employers must give affected workers a 60-day notice of a plant closing or mass layoff. This rule is subject to several other conditions and exemptions.<\/p>\r\n

How WARN Works<\/h3>\r\n

Under the federal WARN Act, WARN is "triggered" when a plant closing or mass layoff will last more than a certain amount of time or affect a specific number of people. State mini-WARNs function the same way. The notice requirement affects all employees, not just the subjects of the layoff.<\/p>\r\n

Although it sounds industrial, a "plant" means any site of employment or any facility or operating unit. If you have 75 employees in a print shop and 30 employees upstairs in the office, you have 105 workers at your "plant."<\/p>\r\n

A "plant closing" is the permanent or temporary shutdown of any single site or one or more facilities at the site. It is a plant closing if you shut down a facility, leading to a total employment loss of more than 50 employees for any 30-day period. If you close your upstairs office, and the closure leads to you needing to lay off 20 of your printers, you have had a plant closing.<\/p>\r\n

A covered plant closing happens when:<\/p>\r\n