WARN Act Guide: Your Rights During Mass Layoffs and Plant Closures

The Worker Adjustment and Retraining Notification (WARN) Act is a federal law that requires employers to provide advance notice of major layoffs and plant closures. If you've been laid off without proper notice, you may be entitled to significant back pay. This guide explains your rights.

Important Disclaimer: This guide provides general information about the WARN Act. It is not legal advice. For specific situations, consult with an employment attorney.

What is the WARN Act?

Basic Requirements

The federal WARN Act requires covered employers to provide:

60 days advance written notice of mass layoffs or plant closures
Notice to affected employees, unions, and state/local government

If proper notice isn't given, affected employees may be entitled to:

Back pay for each day of violation (up to 60 days)
Benefits continuation for the violation period
Penalties payable to local government

Who is Covered?

Employers:

100 or more full-time employees, OR
100 or more employees (including part-time) who work 4,000+ hours per week combined
Excludes federal, state, and local government

Employees:

All full-time workers who have worked 6+ months
Part-time workers (counted for threshold, may have reduced damages)

When Does WARN Apply?

Triggering Events

Event	Threshold
Plant closing	50+ employees at single site
Mass layoff	500+ employees at single site
Mass layoff	50-499 employees if 33% of workforce

Plant Closing Definition

Permanent or temporary shutdown
Of a single site of employment
Results in job loss for 50+ employees
During any 30-day period

Mass Layoff Definition

Not a plant closing
500+ employees laid off, OR
50-499 employees if they represent 33% of the workforce
During any 30-day period

Exceptions to WARN

Three Key Exceptions

1. Faltering Company Exception (Plant Closings Only)

Company actively seeking capital/business
Notice would preclude obtaining that capital
Reasonable, good faith belief

2. Unforeseeable Business Circumstances

Circumstances not reasonably foreseeable
Sudden, dramatic, unexpected action
Example: Loss of major contract

3. Natural Disaster

Flood, earthquake, drought, storm
Direct cause of closing/layoff

Exception Requirements

Even with exceptions:

Employer must give as much notice as practicable
Must state why full notice wasn't possible
Must prove exception applies if challenged

State WARN Acts (Mini-WARN)

Some States Have Stricter Laws

State	Key Differences
California	75+ employees trigger, no exceptions for many
New York	Lower thresholds, 90 days notice
New Jersey	100+ employees, 90 days notice
Illinois	75+ employees, 60 days
Maryland	50+ employees at site

Check Your State: Many states have their own WARN acts with different requirements. Your employer may need to comply with both.

What Notice Must Include

Required Elements

Proper WARN notice must include:

Whether layoff is permanent or temporary
Expected separation date
Bumping rights (if any)
Name and contact for company representative
Statement about union representation

How Notice is Delivered

Must be in writing
Can be mailed or delivered
Email may count (depends on circumstances)
Must reach affected employees

If Your Employer Violated WARN

Signs of Violation

You may have a WARN claim if:

Received less than 60 days notice
Employer had 100+ employees
50+ employees lost jobs at your location
No valid exception applies

What You May Be Owed

For each day of violation (up to 60 days):

Back pay at your average regular rate
Benefits cost (employer portion)
Calculation based on violation period

Example: If you received no notice and your daily pay was $200:

Maximum damages: 60 days × $200 = $12,000 in back pay
Plus benefits value for that period

Taking Action

Step 1: Document Everything

Your termination date
When you received notice (if any)
Number of employees at your location
Other affected employees

Step 2: Calculate Violation

Count days from notification to separation
Subtract from 60 to find violation days
Document your pay rate

Step 3: Consider Legal Options

Many attorneys handle WARN cases on contingency
Class actions common (shares costs)
Individual claims possible
Department of Labor complaint

WARN and Severance

Relationship Between WARN and Severance

Severance May Reduce WARN Damages:

Voluntary severance payments can offset WARN damages
Only if paid as severance (not vacation/wages owed)
May need to be labeled appropriately

Key Considerations:

Don't sign a release before understanding WARN rights
Severance agreements may address WARN
Consult attorney if unsure

Common Employer Tactics

What to Watch For

Staged Layoffs:

Spreading layoffs over 31+ days to avoid threshold
"Aggregation" rule may still apply

Claiming Exceptions:

Employer must prove exception applies
Courts scrutinize claimed exceptions

Calling It "Voluntary":

Forced resignations may still count
Early retirement programs may trigger

Finding Legal Help

Resources

Employment Attorneys:

Many offer free consultations
Contingency arrangements common for WARN
Look for employment law specialists

Class Action Information:

Check if lawsuit already filed against your employer
Consider joining existing action
Larger groups have more leverage

Government Resources:

Department of Labor WARN information
State labor department
Rapid Response teams

Timeline for Claims

Statutes of Limitation

Federal WARN:

Generally 3 years from violation
Some courts apply shorter periods
Don't delay seeking legal advice

State WARN Laws:

Vary by state
May be shorter than federal

Action Checklist

If You Think WARN Was Violated

[ ] Document your separation date and any notice received
[ ] Count employees at your location
[ ] Gather pay stubs showing rate
[ ] Research if lawsuit already filed
[ ] Consult employment attorney (free consultation)
[ ] File for unemployment regardless
[ ] Don't sign releases without understanding WARN

State WARN Laws (Mini-WARN)

Many states have stricter WARN laws than the federal act:

California WARN Act Guide - 75+ employees, no faltering company exception
New York WARN Act Guide - 90-day notice requirement (strictest)
Complete State WARN Comparison - All 50 states

Key Takeaways

WARN requires 60 days notice for mass layoffs and plant closures
100+ employees triggers coverage at federal level
50+ affected employees at single site required
Exceptions exist but are narrow and must be proven
State laws may be stricter—check your state
You may be owed pay for violation days
Many attorneys work on contingency—consult one
Don't sign releases quickly—understand your rights first
Document everything—dates, employee counts, notices
Class actions are common—check for existing lawsuits

Remember: This guide is informational only. Consult with an employment attorney for advice specific to your situation.