Worker Adjustment and Retraining Notification Act

The Worker Adjustment and Retraining Notification Act (WARN) requires employers covered by the act to provide 60-day advance notice of large-scale EMPLOYMENT loss, generally resulting from plant closings and mass LAYOFFs. WARN became law in 1989 and generally applies to companies and nonprofit groups with 100 or more employees. Hourly, salaried, and managerial workers are all entitled to notification under WARN. Also, if the sale of a business results in mass layoffs or plant closings, the parties to the sale must give WARN notice. The act defines employment loss as
• employment termination, other than a discharge for cause, voluntary departure, or retirement
• a layoff exceeding 6 months
• a reduction in an employee’s hours of work of more than 50 percent in each month of any 6-month period
The act provides a variety of exceptions, including when a company is faltering or suffering unforeseeable business circumstances, in addition to natural disasters. Failure to give notice of impending job loss can lead to penalties, including back pay and benefits for the period of violation of the act. Many states have WARN-like disclosure laws alerting workers to the possibility of layoffs.