Passed in 1988, the Worker Adjustment and Retraining Notification (WARN) Act is a crucial safety net for workers facing potential job loss. This legislation specifies that businesses with 100 or more full-time workers must issue a WARN notice 60 days before a plant closure or mass layoff.
Here’s a breakdown of its main features, how it impacts employees and how you can best use the information:
Coverage criteria:
Applies to businesses with 100 or more full-time workers.
Mandates notice when at least 50 employees are laid off at a single site of employment, or when 100 or more workers, totaling at least 4,000 hours per week, are affected.
Encompasses private for-profit businesses, private non-profit organizations and quasi-public entities. Private companies with a public mandate are considered quasi-public corporations.
A facility permanently or temporarily closes, affecting at least 50 employees at a single employment site.
500 or more workers are laid off at one site within 30 days, or 50-499 workers are laid off, constituting 33% of the employer’s total active workforce at that site.
A temporary layoff under 6 months extends beyond 6 months unexpectedly.
The hours of work for 50 or more workers are reduced by 50% or more monthly within a 6-month period.
Includes hourly, salaried, managerial and supervisory staff, as well as non-strikers.
Covers those terminated or laid off for more than six months, with a 50% reduction in hours within 6 months.
Extends to workers on temporary layoff with a reasonable expectation of recall, including those on various leaves, and part-time employees.
Penalties for non-compliance:
Employers violating WARN are liable to affected employees for back pay and benefits for up to 60 days.
Liability may be reduced by wages paid during the notice period or voluntary payments.
Failure to notify local government can incur civil penalties, up to $500 per day of violation, unless liabilities to affected employees are settled within three weeks after closure.
Holly joined the KPRC 2 digital team in March 2024, leveraging her eight years of expertise in blogging and digital content to share her passion for Houston. Outside of work, she enjoys exploring the city's vibrant scenes, all while balancing her roles as a wife and mother to two toddlers.