The Worker Adjustment and Retraining Notification Act (WARN) is a federal law passed in 1988 that requires certain employers to provide 60 days’ advance notice before large-scale layoffs or plant closures. The goal is simple: give workers, their families, and local communities time to prepare and adjust when major job losses are coming.
For employers, failing to comply with WARN can lead to expensive penalties and lawsuits.
Who the WARN Act applies to
The WARN Act covers private, for-profit and nonprofit employers with:
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100 or more full-time employees, or
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100 or more employees who work at least 4,000 hours per week in total (Combined – not counting overtime).
Government agencies are generally not covered by WARN.
What WARN requires
Covered employers must provide written notice at least 60 days in advance when:
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Closing a plant that results in employment loss for 50 or more employees at a single site during any 30-day period
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Laying off 500 or more employees at a single site during a 30-day period
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Laying off 50–499 employees if they make up at least 33% of the workforce at that site
Notices must be given to affected employees (or their representatives, like unions), the state dislocated worker unit, and the chief local government official.
Exceptions to the WARN Act
There are some limited exceptions where less notice may be allowed:
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Faltering company: when advance notice would ruin a chance to secure new business or investment
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Unforeseeable business circumstances: when layoffs are caused by sudden, unexpected events
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Natural disasters: like floods, earthquakes, or storms that force sudden closures
Even in these cases, notice must still be given as soon as possible.
Common mistakes employers make
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Miscounting employees and assuming WARN doesn’t apply
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Providing less than 60 days’ notice without a valid exception
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Sending vague or incomplete notices that don’t meet WARN requirements
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Overlooking the need to notify local officials and state agencies, not just employees
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Assuming part-time employees don’t count at all (they may still matter in certain calculations)
Penalties for noncompliance
Employers who violate WARN may be required to:
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Pay up to 60 days of back pay and benefits to each affected employee
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Pay civil penalties for failing to notify local government officials
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Cover attorney’s fees and court costs if sued by employees
How to stay compliant
- Know your workforce numbers and whether WARN applies.
- Provide detailed written notices at least 60 days in advance.
- Include all required parties in your notifications (employees, unions, state, and local officials).
- Keep records of notices and communications for proof of compliance.
- Consult legal or HR professionals before layoffs to avoid missteps.
How Kubera HR Solutions can help
At Kubera HR Solutions, we help employers review workforce numbers, draft WARN notices, and audit compliance processes to ensure mass layoffs or closures are handled legally and professionally. By planning ahead, you can reduce legal risk while treating employees and communities with fairness and respect.