The federal Worker Adjustment and Retraining Notification (WARN) Act requires some large employers to give advance notice of mass layoffs and plant closings. Several states have similar laws.
Who must give notice
The federal law generally applies to employers with 100 or more employees, not counting part-time workers. It covers plant closings and mass layoffs that affect a threshold number of workers at a single site, and requires 60 calendar days' written notice to affected employees, their representatives, the state and local government.
Exceptions
- Unforeseeable business circumstances.
- Faltering company exceptions in limited cases.
- Natural disasters.
- Employees who have worked fewer than six months in the prior year or work part time may not be counted toward thresholds.
If notice was not given
Affected employees may be entitled to back pay and benefits for up to 60 days, reduced by amounts paid in lieu of notice. Claims are brought in federal court, and some states have their own enforcement. Time limits are strict.
What to do if you are laid off
- Keep the notice or document its absence.
- Ask about final pay, vacation payout and benefits.
- File for unemployment benefits promptly.
- Ask about continuing health insurance through COBRA.
- Consider an employment attorney if you suspect a WARN violation or discrimination in selecting who was laid off.
Frequently asked questions
Does WARN apply to small companies?
The federal act generally does not, but some states set lower thresholds.
Do I get severance?
Not necessarily. It depends on company policy or your agreement.