With the latest news stories of both the federal government and private employers laying off employees, which may be considered involuntary terminations, there are certain things that an employer must be aware of prior to making any decisions regarding these layoffs within their organizations. There are both federal and state laws that employers must comply with prior to laying off employees. One of those laws is to make sure that they are compliant with the federal WARN Act. The following is a very brief overview of the Act.
The Worker Adjustment and Retraining Notification (WARN) Act is part of the e-Code of Federal Regulations, 20 CFR Part 639, (www.ecfr.gov/current/title-20/chapter-V/part-639), and is regulated by the U.S. Department of Labor (DOL). Employers who are thinking about laying off workers should be aware of the WARN Act and its implications on their businesses. Fines and the liability for back pay for displaced employees, for those employers who don’t comply with the Act, may be rather costly, not to mention the bad publicity it may bring to the organization.
The federal WARN Act provides protections to workers, their families, and communities by requiring employers to provide notification 60 calendar days in advance of mass layoffs and plant closings. Advance notice provides workers and their families transition time to adjust to the loss of employment, to seek and obtain new employment, if necessary, and to enter skills training or retraining that will allow them to successfully compete in the job market. The WARN Act also requires employers to provide notice to individual state dislocated worker units, so that dislocated worker assistance may be promptly provided.
The federal WARN Act applies to private, for profit, and nonprofit employers alike. It does not apply to the federal government and its employees, nor does it apply to state and local government entities that provide public services. There are also 18 states who have mini-WARN Act laws that employers should be aware of to include the states of: California, Connecticut, Hawaii, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, New Hampshire, New Jersey, New York, Oregon, Rhode Island, South Carolina, Tennessee, and Wisconsin. Each of these state laws vary, so employers are not only encouraged to understand the federal law, but also to understand each states law with regards to the WARN Act and the layoff of employees. Some state laws are stricter compared to the federal law, and the employer must abide by those laws.
The WARN Act applies to employers who employ 100 plus employees, excluding part-time employees, or 100 or more employees, including part-time employees, who in the aggregate work at least 4,000 hours per week, exclusive of overtime hours. Employees on temporary layoff or on leave who have a reasonable expectation of recall are counted as employees. The provisions of the WARN Act do not supersede any laws or collective bargaining agreements that provide for additional notice or additional rights and remedies. If such law or agreement provides for a longer notice period, the WARN Act notice shall run concurrently with that additional notice period. However, collective bargaining agreements may not reduce WARN Act rights.
The term mass layoff means a reduction in force which first, is not the result of a plant closing, and second results in an employment loss at the single site of employment during any 30-day period for at least 33 percent of the active employees, excluding part-time employees, and at least 50 employees, excluding part-time employees at a single site. Plant closings are the result of loss of employment due to a shutdown of one or more distinct units within a single site or the entire site.
The notice that must be given to displaced employees should include: the name and address of the site where the mass layoff, or plant closing will occur and the name and telephone number of a company/organization official to contact for additional information; a statement as to whether the planned action is expected to be permanent or temporary and, if the entire plant is to be closed, a statement to that effect; the expected date of the first separation and the anticipated schedule for making separations; and the job titles of positions to be affected and the names of the workers currently holding affected jobs. The notice may also contain any information regarding dislocated worker assistance, and if the action is considered temporary the estimated duration, if known. Employers may use any method of delivery to the employees to ensure receipt of notice of at least 60 days before separation is acceptable, e.g., first class mail, personal delivery with optional signed receipt, insertion of notice into pay envelopes, etc.
The U.S. Department of Labor (DOL) has information on the WARN Act on their website at www.dol.gov/agencies/eta/layoffs/warn to include a Worker’s Guide, specifically for employees to understand their rights, and an Employer’s Guide, to help employers understand and implement the regulation effectively.
Information in this article is meant to be informative and not all-inclusive of the WARN Act regulations and requirements. Employers are encouraged to download the e-Code of Federal Regulations at www.ecfr.gov/current/title-20/chapter-V/part-639, in order to completely understand the WARN Act in its entirety.
For additional information on the WARN Act, please contact us at www.newfocushr.com.
Written By: Kristen Deutsch, M.B.A., CCP
President
04/04/2025
Source: e-Code of Federal Regulations 20 CFR Part 639 Worker Adjustment and Retraining Notification
