Did Your Employer Violate the WARN Act?
If your employer laid off 50+ employees without providing 60 days' written notice, you may be entitled to 60 days of back pay and benefits. This guide explains when the WARN Act applies and how to pursue your rights.
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What Is the WARN Act?
The Worker Adjustment and Retraining Notification (WARN) Act is a federal law enacted in 1988 that requires employers to provide advance notice of mass layoffs and plant closings. The purpose is to give workers and their families time to prepare for job loss, seek new employment, and access retraining programs.
Key WARN Act Requirements
- 60-day written notice before mass layoffs or plant closings
- Notice must be provided to affected workers, state dislocated worker units, and local government
- Applies to employers with 100+ full-time employees
- Covers layoffs of 50+ employees at a single site
- Violations can result in back pay and benefits for up to 60 days
Who Is Covered by WARN?
The WARN Act applies to specific employers and situations. Here's who is covered:
Covered Employers
The WARN Act applies to:
- Private, for-profit businesses
- Private, non-profit organizations
- Public and quasi-public entities operating in a commercial context
The employer must have:
- 100 or more full-time employees, OR
- 100 or more employees (including part-time) who work a combined 4,000+ hours per week (excluding overtime)
Covered Events
Plant Closing
Permanent or temporary shutdown of a single site or facility that results in employment loss for 50+ employees during a 30-day period.
Mass Layoff
Reduction in force that is NOT a plant closing but results in employment loss at a single site for:
- 500+ employees, OR
- 50-499 employees if they make up 33%+ of the workforce
Who Counts as an "Employee"?
- Full-time employees: Anyone who works 20+ hours/week AND has been employed for 6+ of the past 12 months
- Part-time employees: Counted toward the 4,000 hours threshold
- NOT counted: Striking workers, independent contractors, business partners
Watch for Aggregation
Employers cannot avoid WARN by conducting multiple smaller layoffs. If there are multiple layoffs at the same site within a 90-day period that together reach WARN thresholds, the notice requirement still applies unless the employer can prove each layoff was for a separate and distinct cause.
60-Day Notice Requirements
When WARN applies, employers must provide written notice at least 60 calendar days before the layoff or closing takes effect.
Who Must Receive Notice?
- Affected workers (or their union representatives if unionized)
- State Dislocated Worker Unit (state labor department)
- Chief elected official of local government (typically the mayor)
What the Notice Must Include
- Name and address of the employment site
- Name and phone number of company official to contact
- Statement of whether the action is permanent or temporary
- Expected date of the first separation and schedule of separations
- Job titles of affected positions
- Names of affected workers (to state/local government)
- Whether bumping rights exist (for unionized workers)
Check Your Notice
If you received a WARN notice, review it carefully. Was it at least 60 days before your termination date? Did it include all required information? Missing or late notice may indicate a WARN violation.
Exceptions to WARN Notification
The WARN Act includes several exceptions that allow employers to provide less than 60 days' notice—or no notice at all—in certain circumstances.
The Three Main Exceptions
Faltering Company Exception
Plant closings only. The employer was actively seeking capital or business that would have avoided or postponed the shutdown, and giving notice would have prevented obtaining that financing or business.
This is narrowly applied. The employer must have had a specific, realistic opportunity that would have been jeopardized by notice.
Unforeseeable Business Circumstances
The closing or layoff was caused by business circumstances that were not reasonably foreseeable at the time notice would have been required.
Examples: Sudden loss of major contract, unexpected natural disaster affecting operations, sudden economic downturn.
Natural Disaster Exception
The plant closing or mass layoff was directly caused by a natural disaster such as a flood, earthquake, drought, storm, or similar event.
The employer must still give as much notice as is practicable.
Exceptions Are Strictly Interpreted
Courts interpret these exceptions narrowly. Employers must still provide as much notice as practicable, and the burden is on the employer to prove the exception applies. Many employers who claim exceptions fail to meet the legal standard.
State Mini-WARN Laws
Several states have enacted their own WARN laws (called "mini-WARN" laws) that provide additional protections beyond the federal WARN Act. These often have lower thresholds or longer notice periods.
| State | Threshold | Notice Period | Key Differences |
|---|---|---|---|
| California | 75+ employees | 60 days | Lower threshold; covers relocations 100+ miles |
| New York | 50+ employees | 90 days | Longer notice; covers layoffs of 25+ if 33% of workforce |
| New Jersey | 100+ employees | 90 days | Requires severance pay (1 week per year of service) |
| Illinois | 75+ employees | 60 days | Lower threshold; covers layoffs of 25+ or 33% of workforce |
| Maine | 100+ employees | 60 days | Requires severance (1 week per year for 3+ years) |
| Massachusetts | 50+ employees | 90 days | Lower threshold; broader coverage |
| Tennessee | 50-99: 50+ affected | 60 days | Tiered thresholds based on company size |
| Wisconsin | 50+ employees | 60 days | Covers business closings and mass layoffs |
Check Your State's Law
If you live in a state with a mini-WARN law, you may have protections even if the federal WARN Act doesn't apply. State laws often have lower employee thresholds and can require severance pay.
Your Rights Under WARN
If you're affected by a WARN-covered layoff or plant closing, you have specific rights:
Right to Advance Notice
- 60 days' written notice before your termination date
- Notice must be specific to you (not just a general announcement)
- Notice should include the expected date of termination
Right to Compensation for Violations
If your employer violates the WARN Act, you may be entitled to:
- Back pay for each day of violation (up to 60 days)
- Benefits you would have received during that period
- Back pay is calculated at your regular rate (or final rate if higher)
- Includes value of medical benefits, ERISA contributions, and other benefits
Right to Information
- You can request information about the layoff from your employer
- Your state's rapid response team can provide resources
- You can contact the Department of Labor for guidance
What Happens When WARN Is Violated
Employer Liability
An employer who violates WARN is liable for:
- Back pay for each affected employee for each day of violation (up to 60 days)
- Benefits under employee benefit plans for the violation period
- Civil penalty of up to $500 per day to local government (if not properly notified)
- Attorneys' fees to prevailing plaintiffs
Damages Can Be Significant
For a worker earning $80,000/year, 60 days of back pay is approximately $13,150 plus the value of benefits. In a class action with hundreds of employees, total damages can reach millions of dollars.
Reducing Liability
Employers can reduce their liability by:
- Paying workers wages and benefits for the notice period
- Voluntarily providing partial notice (reduces violation period)
- Demonstrating good faith effort to comply
How to File a WARN Act Claim
Document Everything
Collect all communications about your layoff: the notice (or lack thereof), termination letter, any emails or announcements. Note the date you were informed vs. your last day of work.
Determine If WARN Applies
Verify your employer has 100+ employees and that 50+ workers were laid off. Check if any state mini-WARN law applies with lower thresholds.
Consult an Employment Attorney
WARN cases are typically handled by employment attorneys on contingency (no upfront cost). Many WARN cases become class actions, making them more attractive to attorneys.
File in Federal Court
WARN claims must be filed in U.S. District Court. Your attorney will file on behalf of you (and potentially a class of affected workers).
Statute of Limitations
You typically have 3 years from the date of the WARN violation to file a claim. Don't wait—evidence becomes harder to gather over time.
No Administrative Agency to File With
Unlike other employment laws, there's no agency (like the EEOC or DOL) where you file a WARN complaint. Claims must be filed directly in federal court, which is why having an attorney is essential.
Recent WARN Act Cases (2024-2026)
WARN Act litigation has increased significantly during recent tech layoffs. Here are notable recent cases:
Tech Industry Cases
- Twitter/X (2023-2024): Multiple lawsuits filed after sudden layoffs without WARN notice. Settlements reached with affected employees.
- Google Contractor Layoffs (2024): Class action filed on behalf of contractors laid off without notice through staffing agencies.
- Meta (2023): Initial layoff wave faced WARN scrutiny; subsequent rounds provided proper notice.
- Various Startups (2024-2025): Multiple WARN lawsuits as venture-backed companies shut down suddenly.
Common Outcomes
- Settlements: Most WARN cases settle before trial, often for 30-60 days of pay
- Class certification: Courts routinely certify WARN class actions
- Exception challenges: Employers frequently fail to prove "unforeseeable" exception
- Aggregation findings: Courts aggregate multiple layoffs to reach WARN thresholds
Class Action Lawsuits
WARN claims are often brought as class actions, which benefits affected workers:
Benefits of Class Actions
- Shared legal costs: Attorney fees are shared among all class members
- Greater leverage: Larger damages create incentive for settlement
- Efficiency: One lawsuit resolves claims for all affected workers
- No individual action required: If a class is certified, you're automatically included unless you opt out
If You're Contacted About a Class Action
- Read all notices carefully
- Understand the proposed settlement terms
- Decide whether to participate or opt out (to file your own claim)
- Submit required forms by the deadline to receive your share
Protecting Yourself
- Request written documentation of your layoff date and effective date
- Note when you first learned of the layoff (verbal or written)
- Gather information about how many employees were affected
- Save any company announcements, emails, or memos about the layoff
- Research whether your employer has 100+ employees
- Check if your state has a mini-WARN law with broader protections
- Consult with an employment attorney within 3 years of the violation
- Connect with other affected employees (potential class members)
Free Consultations Available
Most employment attorneys who handle WARN cases offer free consultations and work on contingency—they only get paid if you win. If you suspect a WARN violation, it costs nothing to have an attorney evaluate your case.
Resources
- Department of Labor: WARN Act information and guidance
- State Rapid Response Teams: Local resources for dislocated workers
- National Employment Law Project: Worker advocacy and resources
- American Bar Association: Lawyer referral services
Know Your Rights
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