- Layoff notice date in writing
- Pay stubs showing daily wage
- Number of employees laid off (ask HR)
The Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to give 60 days advance written notice before mass layoffs or plant closings. If they did not, affected workers are entitled to up to 60 days of back pay and continued benefits — a significant sum that many workers leave unclaimed because they did not know the law applied.
Which Employers Are Covered
The federal WARN Act covers employers with 100 or more full-time employees. ‘Full-time’ means 20+ hours per week and 6+ months of tenure. Covered employers must give notice before: a plant closing affecting 50+ workers at a single site, or a mass layoff affecting 500+ workers at a single site, or a mass layoff affecting 50-499 workers if they represent at least 33% of the workforce at that site. Many states have ‘mini-WARN’ acts with lower thresholds — some cover employers with as few as 50 employees.
The 60-Day Notice Requirement
Written notice must be given at least 60 days before the layoff or closing takes effect. The notice must go directly to affected workers (or their union representatives), the state dislocated worker unit, and the local government. Notice must include: the date of the layoff, whether it is temporary or permanent, the expected date affected employees will be separated, and information on severance and job placement assistance. Vague or informal notice — a meeting, an announcement, an email with no specific dates — generally does not satisfy the legal requirement.
Exceptions That Let Employers Give Shorter Notice
Three narrow exceptions allow shorter notice: the ‘faltering company’ exception (employer was seeking capital or business and reasonable notice would have jeopardized that effort), the ‘unforeseeable business circumstances’ exception (sudden and dramatic market collapse, unexpected contract cancellation, or similar events the employer could not reasonably anticipate), and the ‘natural disaster’ exception. These exceptions are narrowly interpreted. COVID-era layoffs generated significant WARN Act litigation over whether sudden market changes qualified. If your employer claims an exception, it is worth having an attorney evaluate whether the facts actually support it.
What You Are Owed if WARN Was Violated
Employers who violate WARN Act notice requirements are liable for: up to 60 days of back pay at the worker’s regular rate, up to 60 days of the value of benefits (health insurance, vacation, pension contributions), and civil penalties of up to $500 per day (for failure to notify local government). The employer can offset this liability by any severance paid voluntarily. WARN Act claims are typically filed in federal district court, and workers can bring them as class actions.
State Mini-WARN Laws: Often More Protective
Many states have their own WARN-equivalent laws that extend coverage to smaller employers or require longer notice periods. California’s WARN Act covers employers with 75+ employees (lower than the federal 100). New York requires 90 days notice (not 60). Illinois, New Jersey, and several other states have their own versions. If the federal WARN Act does not apply to your situation, check your state’s law before concluding you have no rights.
Do Not Waive Your WARN Act Rights Without Understanding Them
Severance agreements often include a broad release of all claims against the employer. This waiver can include your WARN Act rights. If you were part of a large layoff that came with little or no advance notice, consult an employment attorney before signing any release. The cost of a consultation is typically far less than the potential value of a WARN Act claim — which can be 60 days of salary and benefits for every affected worker.
Frequently Asked Questions
Does the WARN Act Apply to Remote Workers?
Yes, remote workers count toward the employee thresholds and are entitled to notice. The relevant ‘site’ for remote workers is typically their assigned worksite or the office they are attached to for payroll purposes.
What Is the Deadline to File a WARN Act Lawsuit?
The statute of limitations is typically 3 years under the general federal limitations period, but this can vary. Do not wait — if you think you have a claim, consult an attorney promptly.
What If the Company Went Bankrupt?
Bankruptcy does not eliminate WARN Act liability, though recovery may be limited. WARN Act claims are generally unsecured creditor claims in bankruptcy proceedings, meaning recovery depends on assets available.
Does Receiving Severance Affect a WARN Act Claim?
Yes, employers can offset WARN Act liability by any severance voluntarily paid. The calculation is dollar-for-dollar: if you received 4 weeks of severance and are owed 8 weeks under WARN, the net WARN liability is 4 weeks.
Can Contractors or Gig Workers Bring WARN Act Claims?
Only if they are considered employees under the law, not independent contractors. Misclassified employees — treated as contractors but actually functioning as employees — may have WARN Act rights, which is another reason to consult an attorney if the situation looks complex.
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