WARN Act Guide 2026: Your Legal Rights During Mass Layoffs

Complete guide to the WARN Act and your legal rights during mass layoffs. Understand 60-day notice requirements, state mini-WARN laws, and when you may be entitled to back pay.

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WARN Act Guide 2026: Your Legal Rights

Know your rights during mass layoffs and plant closings—you may be entitled to 60 days' pay

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.

Office building representing corporate employment
The WARN Act protects workers during mass layoffs and plant closings

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?

  1. Affected workers (or their union representatives if unionized)
  2. State Dislocated Worker Unit (state labor department)
  3. 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

Courtroom or legal setting
WARN violations can be pursued through federal court

Employer Liability

An employer who violates WARN is liable for:

  1. Back pay for each affected employee for each day of violation (up to 60 days)
  2. Benefits under employee benefit plans for the violation period
  3. Civil penalty of up to $500 per day to local government (if not properly notified)
  4. 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

1 Step

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.

2 Step

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.

3 Step

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.

4 Step

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).

5 Step

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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